DB Corp - Q2FY14 Result Review - Angel Broking

For 2QFY2014, DB Corp's top-line performance was in-line with our estimates. The company's top-line grew by 14.7% yoy to Rs. 434cr on the back of 16.7% yoy growth in advertising revenue and 14.0% yoy growth in circulation revenue. In spite of incurring a pre-operative marketing and launch expenditure of Rs. 2cr for new editions and forex loss of Rs. 5cr, DB Corp's operating profit grew by 27.3% yoy to Rs. 110cr. OPM expanded by 248bp yoy to 25.2% as operating losses in emerging editions reduced from Rs. 10cr to Rs. 8cr. Consequently, net profit grew by 28% yoy to Rs. 62cr.

At the current market price, DB Corp is trading at 15x FY2015E consolidated EPS of Rs. 16.9. We maintain Accumulate on the stock with the target price of Rs. 282.

Source : Equity Bulls

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