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India Equity Research Reports, IPO and Stock News
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What’s the theme?
We like JPL for its leadership in the UP market (the largest print market in terms of readership and print ad
value). The company's well-entrenched position in growing regions such as Bihar and Jharkhand, and its
phased and planned expansion into new media businesses and a wide portfolio (including Mid-day, I-next
and Cityplus) strengthen our belief that it is well poised to benefit from steady growth in the print media
sector. We take comfort from JPL’s well-balanced business model as it derives more than 30% revenue
from circulation and other media businesses. Moreover its growth strategy to further increase penetration
in its current market and monetisation of its high readership base insulates it from slowdown in the advertising
market given the current sluggish macroeconomic scenario.
What will move the stock?
1) Momentum in ad revenue underpinned by anticipated growth across sectors such as education and financial
services; 2) Broad-based growth across various other new media businesses; 3) Attractive valuation: At CMP,
the stock is trading attractively at 14xFY13E EPS.
Where are we stacked versus consensus?
Our revenue estimate for FY13 is in line with consensus. However our EPS estimate of Rs8.2 for FY13 is
5% below consensus. We have a 'BUY' recommendation on the stock with a target price of Rs148 (18xFY13E
EPS).
What will challenge our target price?
1) Increase in newsprint prices; 2) Slowdown in the economy; 3) Increased competition in current markets
where JPL has a presence.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
What’s the theme?
We like JPL for its leadership in the UP market (the largest print market in terms of readership and print ad
value). The company's well-entrenched position in growing regions such as Bihar and Jharkhand, and its
phased and planned expansion into new media businesses and a wide portfolio (including Mid-day, I-next
and Cityplus) strengthen our belief that it is well poised to benefit from steady growth in the print media
sector. We take comfort from JPL’s well-balanced business model as it derives more than 30% revenue
from circulation and other media businesses. Moreover its growth strategy to further increase penetration
in its current market and monetisation of its high readership base insulates it from slowdown in the advertising
market given the current sluggish macroeconomic scenario.
What will move the stock?
1) Momentum in ad revenue underpinned by anticipated growth across sectors such as education and financial
services; 2) Broad-based growth across various other new media businesses; 3) Attractive valuation: At CMP,
the stock is trading attractively at 14xFY13E EPS.
Where are we stacked versus consensus?
Our revenue estimate for FY13 is in line with consensus. However our EPS estimate of Rs8.2 for FY13 is
5% below consensus. We have a 'BUY' recommendation on the stock with a target price of Rs148 (18xFY13E
EPS).
What will challenge our target price?
1) Increase in newsprint prices; 2) Slowdown in the economy; 3) Increased competition in current markets
where JPL has a presence.
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