14 September 2011

DB Corp (DBCL.BO, Buy, PT Rs310, 32% upside) UBS: India Mid-Caps TOP PICKS - September 2011

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• Largest print media company in India in terms of total daily
readership share of all its newspapers; flagship newspaper
‘Dainik Bhaskar’ second-most widely-read Hindi newspaper
• Well-diversified geographical reach, strong management
vision and superior execution track record
• The company to benefit the most from India’s rapidlygrowing
regional print sector; to expand into new
geographies
• Strong leadership position in multiple states, allows it to
command premium ad rates over its peers
• Forecast a print ad revenue CAGR of 14.5% for the next four
years
• Successfully launched Dainik Divya Marathi – a daily
newspaper in Marathi language – in Aurangabad and Nasik.
Likely to launch a Hindi daily in Bihar in FY13E
• Shareholding - Promoter 86%
Valuation: Value at FY13E P/E multiple of 18.0x




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