Incorporated in 1942, Jagran Prakashan Ltd (JPL) is a media house with interests spanning across printing and publication of newspapers & magazines, FM Radio, Digital, Outdoor Advertising and Promotional marketing/Event management/on ground activation businesses. The Group publishes 8 newspapers and 2 magazines from 37 different printing facilities across 13 states in 5 different languages.
Outlook and Valuation:
With 9 titles across 13 states in 5 different languages and a total readership of 70 million (IRS 2017), it is the largest print media group in the country. Despite increased competitive intensity, the company has managed to consistently increase ad yields. We expect the company to maintain growth momentum driven by healthy ad spend by sectors such as FMCG, education, autos, and government. We estimate consolidated revenue/PAT to grow at a CAGR of 8%/11% over FY1720E. We recommend ‘BUY’ rating on the stock with a target price of Rs.217 based on SOTP methodology. We value the core business at 13x FY20E and radio business at 27x FY20E earnings.
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