Hold HT Media Ltd - Emkay

Reco: HOLD
CMP: Rs 90
Target Price: Rs 100

Ad growth under pressure, retain HOLD

- Q1FY13 results were below estimates- Revenues at Rs4.9bn (down 1.4% YoY), EBITDA at Rs669mn (down 26% YoY) & PAT at Rs407mn (down 21% YoY)

- Print ad rev. declined 3.1% yoy to Rs3.7bn. English ad (contribute 52% to top-line) declined 6.5% yoy, while Hindi ad grew 6% yoy. EBITDA margin declined 452bps yoy to 13.7%

-Going forward ad growth would remain under pressure, we revise ad growth est. downwards to 3%/9% for FY13E/14E. EBITDA margins are expected at 15.2%/16.2% for FY13E/14E

- Cut EBITDA by 4%/10% for FY13E/14E, however, lower tax to partially offset -ve impact. Revised EPS stands at Rs8/9.7 for FY13E/14E. Maintain HOLD with TP of Rs100 (12x FY13E EPS).

Source : Equity Bulls

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