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    Hold DB Corp, target price Rs 120: ICICI Direct

    Synopsis

    DB Corp Ltd., incorporated in the year 1995, is a Small Cap company (having a market cap of Rs 1911.45 Crore) operating in Media & Entertainment sector.

    Buy,-sell-1---IStock
    It now values the stock at 7x FY23E EPS with a target price of Rs 120 (earlier Rs 95).
    ICICI Direct has hold call on DB Corp with a target price of Rs 120. The current market price of DB Corp is Rs 106.55. Time period given by analyst is one year when DB Corp Ltd. price can reach defined target.

    DB Corp Ltd., incorporated in the year 1995, is a Small Cap company (having a market cap of Rs 1911.45 Crore) operating in Media & Entertainment sector.

    Financials
    For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 496.58 Crore, up 41.97 % from last quarter Total Income of Rs 349.78 Crore and down -17.49 % from last year same quarter Total Income of Rs 601.83 Crore. Company reported net profit after tax of Rs 99.04 Crore in latest quarter.

    Investment Rationale
    The company has curtailed dividend payout to shareholders (from 60%+ in earlier years to ~37%) that was disappointing, considering its peer has been returning more cash to shareholders. Also, the impact of rising newsprint prices remains a concern. The stock has also run up sharply, which, thebrokerage believes, prices in all positives pertaining to cost savings. It downgrades the stock from BUY to HOLD rating. It now values the stock at 7x FY23E EPS with a target price of Rs 120 (earlier Rs 95).



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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