DB Corp Ltd. share price target and research reports

Name: Latest research reports of DB Corp Ltd. authored by Motilal Oswal and published by - Trendlyne research reports.
Item: DB Corp Ltd.
Rating: 5
Author: Motilal Oswal

Latest analyst research reports with target prices and PDF download for DBCORP, BSE:533151 DB Corp Ltd.

DB Corp Ltd.

18 Jul 2019

259.85

0.37%

Cost measures supporting in weak environment

Buy: DB Corp Ltd.

Target

Motilal Oswal

revenue declined 4% YoY to INR6.1b (9% miss) due to weak print ad growth (-5% YoY) and lower circulation revenue (-2% YoY). EBITDA increased 4% YoY to INR1.8b (14% miss), benefiting from a PAT declined 4% YoY to INR937m (22% miss) owing to (a) lower other income and (b) reallocation and higher cost of depreciation/interest cost of INR92m based on Ind-AS 116. Radio segment performance was the only silver lining with healthy revenue/EBITDA growth of 19%/84% YoY. (c) The focus on cost reduction will continue against the backdrop of weak revenue performance. Given weak ad spending by both national and local advertisers, management refrained from providing any guidance. Yet we build in revenue/EBITDA growth of 3%/16% for the year in view of low newsprint cost and the strong focus on reducing cost. Despite the cut in earnings, PAT is estimated to grow at 12%/19% in FY20/21, given the sharp reduction in opex.

DB Corp Ltd. is trading above its 200 day SMA of 257.4

DB Corp Ltd.

17 May 2019

259.85

0.37%

DB Corp (4QFY19): Trigger in place, rebound likely! Maintain BUY

Buy: DB Corp Ltd.

HDFC Securities

DB Corp's (DBCL) flagship daily, the Dainik Bhaskar is the 2nd most widely read Hindi daily. However, DBCL is the overall leader in ad revenue. It enjoys a higher readership and thus revenue share in high-yielding urban markets. Led by a recovery in ad revenue growth and benign newsprint costs, we estimate revenue/EBITDA/earnings to grow at a CAGR of 5.4/21.5/25.3% over FY19-21E. DB Corps (DBCL) 4QFY19 operating performance was marginally ahead of estimates. This was led by 8% advertising revenue growth in print, modest decline in newsprint (NP) prices with lower other opex YoY. Maintain BUY with TP of Rs 291 (+59%) @ 12x FY21E EPS (a discount of ~35% to 3/5/10 years avg PE).

DB Corp Ltd. is trading below its 100 day SMA of 263.8

DB Corp Ltd.

17 May 2019

259.85

0.37%

DB Corp

Hold: DB Corp Ltd.

Recommendation Target

ICICI Securities Limited

DB Corp reported largely in line revenue numbers in Q4FY19 but a beat on EBITDA (margin of 17.7% vs. 16.7% expected), driven by lower-thananticipated newsprint as well as employee costs. Overall revenues at | 588.5 crore, up 5% YoY, were driven by print ad growth of 8.2% YoY and radio revenue growth of 7.7%. Circulation revenues came in at | 127.3 crore (up 1.7% YoY) with growth being largely volume led. Digital revenues, on the other hand, declined 24.1% YoY to | 9.9 crore, with the company focusing on building direct traffic to site and doing away with low paying inventory....

DB Corp Ltd. is trading below its 100 day SMA of 263.8

DB Corp Ltd.

25 Jan 2019

259.85

0.37%

DB Corp

Buy: DB Corp Ltd.

Target

ICICI Securities Limited

Overall revenues came in at | 659.7 crore (up 10.2% YoY), much ahead of our estimates of | 639.8 crore, on account of superior print and radio ad revenues. Print ad revenues came in at | 420.8 crore, up 11.5% YoY ahead of our expectation of ~9.5%, with delta possibly contributed by festivities and elections led boost. The key surprise was on radio ad revenues front, which were at | 46.5 crore, up 38.4% YoY (vs. our expectation of 15% YoY growth). We await clarification on such growth. Print circulation revenues, however, were slightly...

DB Corp Ltd. is trading below its 100 day SMA of 263.8

DB Corp Ltd.

24 Jan 2019

259.85

0.37%

Higher newsprint cost drags earnings; green-shoots visible

Buy: DB Corp Ltd.

Recommendation Target

Motilal Oswal

24 January 2019 DBCL continued to see pain due to higher newsprint prices; though the pain was lower-than expected. revenue grew 10% YoY to INR6.6b (+13% QoQ, 2% beat) led by healthy 11%/3% YoY growth in print ad/circulation revenues and strong 39% YoY growth in radio revenue. This coupled with lower other operating cost helped EBITDA to remain flat YoY (+51% QoQ, 31% beat) at INR1.4b, even as newsprint cost spiraled 34% YoY. (1) Healthy 11% ad growth in 3QFY19 was driven by 2% election related advertisement while rest was due to a favorable festive season.(2) In FY20, ad growth should be better due to high contribution from election ads as well as due to the government rate hike. (3) Against the peak of USD750/ton, newsprint prices are down to USD560-565/ton and are likely to decline further due to capacity addition globally in Russia and China; we expect 23-24% fall in prices but the benefit will be seen from 1QFY20.

DB Corp Ltd. is trading below its 100 day SMA of 263.8

DB Corp Ltd.

26 Oct 2018

259.85

0.37%

DB Corp

Buy: DB Corp Ltd.

Recommendation Target

ICICI Securities Limited

The overall revenues came in at | 582.1 crore (up 2.4% YoY), marginally below our estimates of | 589.5 crore, on account of lower than expected print circulation revenue growth of 5.6% YoY (vs. our expectation of 8.2% YoY) at | 131.8 crore. The print ad revenues came in at | 364.1 crore, up by 4% YoY and in line with our expectation, with weakness largely contributed by shifting of festive season. The radio ad revenues were at | 37.7 crore, growth of 8%...

DB Corp Ltd. is trading above its 200 day SMA of 257.4

DB Corp Ltd.

18 Sep 2018

259.85

0.37%

DB Corp

Hold: DB Corp Ltd.

Target

ICICI Securities Limited

ICICI Securities Ltd | Retail Equity Research Our interaction with the DB Corp management indicates that newsprint prices are expected to remain elevated for the rest of FY19. The pain has been accentuated by a sharp rupee depreciation vs. US$ (11% in FY19 so far). However, on account of additional newsprint supply coming in from a couple of new mills in the global market, newsprint prices are expected to at least stabilise at the current level, if not decline further. We now build in ~30% newsprint cost increase (vs. ~22% earlier) for FY19....

DB Corp Ltd. is trading above its 200 day SMA of 257.4

DB Corp Ltd.

25 Jul 2018

259.85

0.37%

Circulation drive to continue

Neutral: DB Corp Ltd.

Recommendation Target

Motilal Oswal

25 July 2018 Management plans to increase circulation in Bihar, Gujarat and Rajasthan by about 100k-150k copies to attain leadership in each region. In 1QFY19, it had reduced copies by 3% QoQ (from 5.96m in Mar- 18 to 5.8m in Jun-18), however, management believes it is opportune time to increase circulation copies when other print cos are curtailing circulation copies to save cost amidst high newsprint price. It also plans to focus on other markets Maharashtra, Punjab once the circulation drive in Bihar, Gujarat and Rajasthan is completed. Out of the combined ad market size of Gujarat, Rajasthan and Bihar at INR22.5b, DBCL is estimated to have about 26%, 49% and 10% market share in the respective markets. With rising dominance in each of the market, management plans to increase ad market share driven by higher volumes and ad yields. In Bihar, it plans to double market share to 20% with a mix of 40% yield and 60% volume.

DB Corp Ltd. is trading below its 100 day SMA of 263.8

DB Corp Ltd.

20 Jul 2018

259.85

0.37%

DB Corp

Buy: DB Corp Ltd.

Centrum Broking

We maintain our BUY rating on DB Corp with a target price of Rs368. We expect the company to post high single digit ad growth for FY19E as key sectors such as real estate, BFSI continue to disappoint with management focus on FMCG and auto to driver growth. Further general election would help in Q4FY19 to drive ad growth. Newsprint price inflation is expected to be ~18-20% for FY19E which would further dampen margins as the current prices are ~$750/MT. High circulation increase in legacy markets and Bihar would further increase newsprint consumption. Turnaround in new Phase-III radio station, lower losses in digital...

DB Corp Ltd. is trading above its 200 day SMA of 257.4

DB Corp Ltd.

20 Jul 2018

259.85

0.37%

DB Corp

Hold: DB Corp Ltd.

Target

ICICI Securities Limited

Overall revenues came in at | 632.4 crore (up 6.7% YoY), marginally below our estimate of | 636.1 crore, on account of lower-thanexpected print ad revenue growth of 5.3% YoY (vs. our expectation of 7% YoY) at | 411 crore. Print ad growth for the quarter was largely driven by volume. Circulation revenues came in at | 134.5 crore, up 10.2% YoY and better than our expectation of growth of 8.1% YoY, due to volume growth across the market. Radio ad revenues were weak at | 31.7 crore, growth of mere 1.6% YoY (vs. our expectation of 7% YoY growth), owing to heavy advertisement by central...

DB Corp Ltd. is trading below its 100 day SMA of 263.8

Is DB Corp Ltd. worth buying?

230 Votes:

Buy 77.83%

Sell 14.35%

Hold 7.83%