Jagran Prakashan Mixed bag, Maintain BUY :Emkay

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Jagran Prakashan

Mixed bag, Maintain BUY

BUY

CMP: Rs 120                                       Target Price: Rs 149

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n     Strong ad revenue growth of 19.7% yoy to Rs Rs1.9bn, on the back of improving yields. Circulation rev. up 6.3% to Rs558mn. Other business rev. grew 47.8% to Rs292mn

n     EBITDA improved by 12.9% yoy, however, EBITDA margin declined by 150bps. Led by higher raw material cost & other expenses which escalated 34.8% yoy 13.7% yoy

n     Mid-Day rev. grew 7.6% yoy to Rs1.1bn for FY11. EBITDA & PAT were lower at Rs145mn and Rs20mn, resp. Decline is attributed to change of accounting policies to same as JPL’s

n     Given the escalation in costs, we cut EPS est. by 3.6/1.5% for FY12E/13E. Valuations at 15.3x/12.1 for FY12E 13E. Retain BUY rating with revised TP of Rs 149 (earlier Rs155)