DB Corp's 3QFY18 results disappointed as the company reported weaker than expected advertising revenues and other expenses on account of Bihar launches came in higher than our estimates. Monthly trends shared by the management as well as the anniversary of advertising disruption that started with demonetization/ RERA and continued with GST indicate that the worst may be behind, in so far as advertising revenue growth is concerned. We continue to believe that print media players are valued cheaply relative to peers, as topline growth in recent years has been weak and a large number of investors have begun to call "The End of The Newspaper" (unfairly in our opinion, as we await IRS findings). We further believe that due to a more favorable election cycle, DB Corp is likely to outperform peers over the next few quarters. Maintain BUY, with a price target of Rs 550 (Rs 560 earlier).
Shares of D B Corp Ltd was last trading in BSE at Rs.339.7 as compared to the previous close of Rs. 340.7. The total number of shares traded during the day was 3322 in over 452 trades.
The stock hit an intraday high of Rs. 343.7 and intraday low of 338.05. The net turnover during the day was Rs. 1127945.