DB Corp - 3QFY2013 Result Review - Angel Broking

DB Corp (CMP: Rs.230/ TP: Rs.264/ Upside: 14.7%)

DB Corp has announced its 3QFY2013 results. The company posted an 11% yoy growth in its top-line to Rs.439cr, in line with our expectations, on the back of 11% yoy growth in advertising revenue (aided by festive season). However, on the EBITDA front, the company's margins were better than our expectations, expanding by 308bp yoy to 27.1% on account of reduction in losses in emerging editions. Consequently, net profit grew by 28% to Rs.71cr. At the current market price, DB Corp is trading at 16x FY2014E consolidated EPS of Rs.14.4.

We recommend Accumulate on the stock with the target price of Rs.264.

Source : Equity Bulls

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