ICICI Direct's research report on Jagran Prakashan
Jagran Prakashan reported a weak set of Q4FY20 numbers. Operating revenue (consolidated) declined 24.8% YoY to Rs 445.6 crore as print ad revenue was down 24.3% YoY to Rs 262 crore. Subscription and radio revenue also registered de-growth of 9.6% YoY and 44% YoY, respectively. EBITDA declined 60.7% YoY to Rs 54.3 crore due to a weaker topline with EBITDA margins at 12.2%, down 1109 bps YoY. Softened newsprint prices helped restrict EBITDA decline partially. Consequently, PAT was at Rs 11.2 crore, down 83.1% YoY mainly due to a weaker operational performance.
Outlook
Therefore, we upgrade the stock from HOLD to BUY with a revised target price of Rs 55 (6x FY22 P/E).
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