ICICI Securities research report on DB Corp
DB Corp’s (DBCL) Q4FY20 advertisement revenue dip of 20.1% YoY was weak, but outperformed peers. However, the company’s EBITDA dip was cushioned from lower newsprint prices and pagination. It expects cost saving of Rs1-1.2bn in FY21 to aid in protecting large EBITDA slip. DBCL remains hopeful on return of readers and advertisers, but we see imminent risk to advertisement revenue from digital. Lower circulation losses could aid earnings, but we do not see industry moving towards it. Dividend distribution policy unchanged at 65% payout. Promoters have cut debt to Rs1.6bn from Rs3bn, but pledge shares remain high on lower stock price. Promoters committed to reduce debt to nil, and revoke complete pledged shares.
Outlook
We have cut our EPS estimates by 23.3% / 3.4% for FY21/FY22, respectively, and target price to Rs103 (from Rs107). Reiterate BUY.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!