Jagran Prakashan Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Ad revenues from the print business continued to remain healthy with 14.0% YoY growth to | 328 crore, higher than our expectations...

For 3QFY2016, Jagran Prakashan (JPL)s consolidated top-line grew by 22.5% yoy, mainly due to strong growth in the advertisement segment. The Radio City business revenue has also been added to the overall advertising revenue. However, circulation revenue showed lower growth during the quarter. The company reported strong profitability on a consolidated basis due to lower news print costs and with contribution from Radio City. Ad revenue up ~29% yoy, Circulation revenue up ~2% yoy: The companys advertising revenue growth for the quarter was healthy at ~29% yoy to ~Rs435cr, primarily driven by increase in print revenue and radio advertisement revenue. Circulation revenue was up 2% yoy to `102cr due to increase in cover prices. Further, income from other businesses grew by ~23% yoy to ~Rs40cr. Consequently, the consolidated top-line grew by ~23% yoy to~ Rs576cr. OPM improves: The consolidated operating profit grew by ~30% yoy to Rs172cr and the OPM expanded by 170bp yoy to 29.9%, owing to lower raw material costs. This led to a strong reported net profit growth of ~40% yoy to Rs93cr (including profits from the radio business). Outlook and valuation: Considering Dainik Jagrans status as the most read Hindi newspaper in the country and its...

To continue to clock industryleading print adrevenue growth: Jagran clocked 14% ad revenue CAGR over the last five years vs. industry's 9% it was able to effectively use its available ad inventory in its main edition through innovative marketing. Despite increased...

For 2QFY2016, Jagran Prakashan (JPL)s consolidated top-line grew by 19% yoy, mainly due to strong growth in the advertisement segment. The acquisition of the Radio City business in 1QFY2016 added to the advertising revenue. However, circulation revenue showed lower growth during the quarter. The company reported strong profitability on a consolidated basis due to falling news print costs and with contribution from Radio City. Ad revenue up ~27% yoy, Circulation revenue up ~4% yoy: The companys advertising revenue growth for the quarter was healthy at ~27% yoy to ~Rs520cr, primarily driven by increase in print revenue and radio advertisement revenue. Circulation revenue was up 4% yoy to Rs100cr due to increase in cover prices. However, income from other businesses declined by ~7% yoy to ~Rs31cr. Consequently, the consolidated top-line grew by ~19% yoy to~ Rs520cr. OPM improves: The consolidated operating profit grew by ~38% yoy to Rs147cr and the OPM expanded by 393bp yoy to 28.2% owing to lower raw material cost. This led to a strong reported net profit growth of ~61% yoy to Rs91cr (including profits from the radio business). Outlook and valuation: Considering Dainik Jagrans status as the most read Hindi newspaper in the country and its...

Radio city acquisition by JPL provides synergy & entry into fast growingradio industry: JPL has entered into radio business by acquiring Music Broadcast Pvt Ltd. (MPBL) which operates the brand Radio City and has 12% market share in industry. Radio industry is in a high growth segment which is expected to clock CAGR of 18% in next five years and reach Rs. 39.5 bn by 2019.

Highest print ad revenue growth among peers INDIA | MEDIA | Quarterly Update Jagran Prakashan's Q1FY16 consolidated revenue growth was in line with our estimates...

Jagran Prakashan's Q4FY15 consolidated revenue growth was below estimates because of flattish ad revenue growth (vs. our expectation of 5% yoy growth). However, due to improvement in per-copy realization and tight cost control, EBITDA...

Jagran Prakashan intends to bid in the Phase III licensing of the radio channels post this acquisition and hopes to derive synergies between its print and the radio segments. As per the management in their concall, ~Rs300cr would be invested further in the radio segment post the acquisition for license...