Accumulate Jagran Prakashan - Emkay

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).

Source : Equity Bulls

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