1 JAGRAN share price target reports by brokerages below. See what is analyst's view on JAGRAN share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
The ad outlook in the near term is muted. Also, given the print dependence on auto (category facing challenges in medium term), we maintain our cautious stance. Moreover, weak radio growth outlook is also a spoiler. We now lower our earnings estimates for FY20 & FY21 by ~5% and 12%, respectively. Despite alluring valuations of ~7.4x FY21, we have a HOLD rating as we await a recovery in ad growth. We cut our target price to Rs 85. Our target price implies 8x FY21E earnings, lower than earlier target multiple of 9x to account for lower growth trajectory.
Jagran Prakashan, publisher of India’s most widely read Hindi daily, Dainik Jagran, along with its subsidiaries, is all settocapitalize on the market growth. The company has in the past acquired Music Broadcast (Radio City), Mid-Day and ‘Naidunia’. All these investments have proved to be in favour of the company from a strategic perspective. Specially MBL, where JPL’s investme nt is already at 3.5x since then. JPL has presence in all the major states with a huge market for Hindi Daily except Rajasthan wher e the company might grow with an inorganic approach once again. The company has a very good opportunity to grow even in the markets where it is well established due to low penetration rates. The hike in the advertisement rates by 25% will also be ver y positive for JPL. As India is going for the general elections, the advertisement revenue flows are expected to increase furth er. While the high newsprint costs remains to be a key risk for the company, the prices are expected to stabilize in the coming quarters. As the per capita consumption expenditure increases, we might see a further boost in advertising spends and benefit the company. We are positive on Jagran Prakashan and recommend a buy at CMP of Rs 118.5 and add on dips to Rs 108 with target price of Rs 148 based upon 12x FY21E EPS.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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