[Investors Please Listen] Jagran Prakashan Ltd (JPL) Strong operating performance, at CMP of Rs98, the stock trades at expensive valuations of 19x FY11E EPS of Rs5.

Net sales grew by 12.3% YoY to Rs 2318.7mn on the back of (1) 14.94% increase in advertisement revenue to Rs 1609.2 mn and (2) 15.3% YoY increase in circulation revenue to 545.2mn led by price hike taken in Dec 08. However income from OOH & event management business declined by 7.7% YoY to Rs 134mn.
EBITDA increased by strong 50% YoY to Rs704.5mn mainly due to 4% decline in raw material cost. Prudent news print inventory management and fall in newsprint price resulted in 513 bps YoY decline in raw material expense translating into 633bps YoY improvement in EBITDA margin to 30.4%, highest in last 9 quarters.
Net Profit increased by 56.2% YoY to Rs 494.5 mn led by better operating performance.
During the quarter Dainik Jagran's circulation increased by 3.5% YoY, reflecting its continued strong foothold in the market.
In light of better operating performance and declining news print prices, we maintain positive view on the stock. However, at CMP of Rs98, the stock trades at expensive valuations of 19x FY11E EPS of Rs5. Stock not rated.
--~--~---------~--~----~------------~-------~--~----~
Safe Harbor:
The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.

You received this message because you are subscribed to the Google Groups "Investors Please Listen !" group.
To post to this group, send email to investorspleaselisten@googlegroups.com
To unsubscribe from this group, send email to
investorspleaselisten+unsubscribe@googlegroups.com For more options, visit this group at http://groups.google.com/group/investorspleaselisten?hl=en
-~----------~----~----~----~------~----~------~--~---