Jagran Prakashan - Q1FY2014 Result Review - Angel Broking

For 1QFY2014, Jagran's top-line and bottom-line performance was better than our estimates. Top-line grew by healthy 12.4% yoy to Rs. 385cr (our estimate of Rs. 344cr), primarily due to 12.8% yoy growth in advertising revenue to Rs. 269cr. Circulation revenue also reported strong growth of 14.6% yoy to Rs. 79cr. On the operating front, OPM expanded by 151bp yoy to 26.3%. Consequently, Net profit grew by 9% yoy to Rs. 59cr (our estimate of Rs. 52cr).

At the current market price, Jagran is trading at 11.6x FY2015E consolidated EPS of Rs. 7.8. We maintain Buy on the stock with the target price of Rs. 119.

Source : Equity Bulls

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