Result Update: Jagran Prakashan, Piramal Glass:: Emkay

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Result Update

Jagran Prakashan Reco: ACCUMULATE CMP: Rs 97 Target Price: Rs 116 Ad growth rebounds, cost pressure remain ·      Standalone revenue at Rs3240mn, up 13.3% yoy (better than our est. of Rs3159mn), driven by ad growth of 14.9% yoy  and 9.8% yoy growth in circulation revenue ·      Ad rev. of Rs2.2bn was up 14.9% yoy (our est. of 11.5%). Event & Outdoor grew 14.6% yoy to Rs289mn. Digital revenue at Rs23mn 15.5% yoy ·      EBITDA was down 5.2% yoy to Rs851mn with EBITDA margin at 26.3% (our est. of 25.7%). Raw material and SG&A cost increased 31.4% and 15.2% yoy, leading to EBITDA decline    ·      We have re-aligned our estimates, cut EPS est. by 10.0%/8.4% for FY12E/13E. Downgrade to ACCUMULATE from BUY with revised TP of Rs116 (from Rs 135)

Piramal Glass Reco: BUY CMP: Rs 115 Target Price: Rs 155 Capacity relining impacts profitability ·      Q2FY12 was below expectations – revenues grew 9.5% yoy to Rs 3.4bn, EBIDTA margins declined 170bps yoy to 21.4% and APAT de-grew by 19% to Rs 188mn ·      Relining in US & Indian furnace resulted in flat growth for C&P. Demand headwinds in Brazil and Turkey led to de-growth in Mass segment. Europe market remains healthy ·      Capacity expansion well on track; major relining of capacities completed. FY13E to witness healthy revenue growth aided by expanded capacities ·      Marginal revision in earnings, FY12E revised downwards by 4% to Rs 12.7 and FY13E by 2% to Rs 17.1. Maintain BUY with revise target price of Rs155/Share