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Jagran Prakashan (JPL) continues to remain the leader in UP (India’s largest state)
and stands at No. 2 in Bihar (the second-largest state), with overall readership of
~5.4cr and covering ~70% of Hindi speaking readers. During 1QFY2012, the
company successfully launched Punjabi Jagran (now JPL caters to five different
languages). JPL also launched the 11th edition of The Inquilab, the largest read
Urdu newspaper in UP and New Delhi, through its subsidiary Mid-Day Infomedia Ltd
during 1QFY2012. Further, City Plus launched four more editions, now totaling 30 editions.
We expect JPL to post a 9% CAGR in its top line over FY2011-13E, driven by the
~10% CAGR in advertising and a ~3% CAGR in circulation revenue. The other
businesses and MML are estimated to record a CAGR of ~11% and 13%,
respectively, over FY2011-13E on better traction. In terms of earnings, we expect
JPL to report a 10% CAGR over FY2011-13E, driven by top-line growth and various
cost-curtailment measures and improving profitability in its nascent businesses.
The underperformance of the stock and attractive valuations (at the CMP, the stock
trades at 13.5x FY2013E EPS) provide a good entry point for investors. Hence,
we maintain our Buy view with a revised target price of `148, based on a
P/E multiple of 18x FY2013E (in-line with its historical valuations).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Jagran Prakashan (JPL) continues to remain the leader in UP (India’s largest state)
and stands at No. 2 in Bihar (the second-largest state), with overall readership of
~5.4cr and covering ~70% of Hindi speaking readers. During 1QFY2012, the
company successfully launched Punjabi Jagran (now JPL caters to five different
languages). JPL also launched the 11th edition of The Inquilab, the largest read
Urdu newspaper in UP and New Delhi, through its subsidiary Mid-Day Infomedia Ltd
during 1QFY2012. Further, City Plus launched four more editions, now totaling 30 editions.
We expect JPL to post a 9% CAGR in its top line over FY2011-13E, driven by the
~10% CAGR in advertising and a ~3% CAGR in circulation revenue. The other
businesses and MML are estimated to record a CAGR of ~11% and 13%,
respectively, over FY2011-13E on better traction. In terms of earnings, we expect
JPL to report a 10% CAGR over FY2011-13E, driven by top-line growth and various
cost-curtailment measures and improving profitability in its nascent businesses.
The underperformance of the stock and attractive valuations (at the CMP, the stock
trades at 13.5x FY2013E EPS) provide a good entry point for investors. Hence,
we maintain our Buy view with a revised target price of `148, based on a
P/E multiple of 18x FY2013E (in-line with its historical valuations).
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