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Visit http://indiaer.blogspot.com/ for complete details �� ��
Jagran Prakashan
Reco: ACCUMULATE
CMP: Rs 99
Target Price: Rs 116
NaiDuniya to strengthen MP & Chhattisgarh portfolio
· Jagran acquires Suvi Info Management Pvt. Ltd which owns NaiDunia. The deal is valued at Rs2.25bn. Net payout for Jagran would be ~Rs1.5bn as it would get tax benefit of ~Rs750mn (in FY13E) on accumulated losses of Rs2.5bn
· NaiDunia had Rs1.0bn revenue and EBITDA loss of Rs250mn in FY11. JPL confident to reduce losses by Rs80-90mn from year one, led by cost rationalization
· This acquisition would be value accretive in the long-term, given the size of ad market, cost synergies and cost rationalization efforts by Jagran management
· We believe the acquisition was much needed to expand in MP& Chhattisgarh markets for Jagran. At EV of Rs2.25bn NaiDuniya is valued at 2.25x EV/sales, at par with Jagran’s EV/sales of FY12E
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