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DB Corp
Performance Highlights
Quarterly Results (Consolidated)
(` cr) Revenue EBITDA OPM (%) PAT
Source: Company, Angel Research
BUY
CMP Target Price
Investment Period
2QFY12 351 69 19.8 40 % yoy 7.8 17.2 174bp 9.3 1QFY13 374 81 21.6 47 % qoq 1.1 0.8 (6)bp (5.6)
`222 `259
12 Months
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Media 4,060 (54) 0.4 235/170 18,936 10 18,682 5,684 DBCL.BO DBCL@IN
For 2QFY2013, DB Corp (DBCL) reported a moderate performance on the earnings front, registering a 9.3% yoy growth to `44cr. However, the reported profit grew by 20.8% yoy to `49cr on account of forex gain of `4.6cr.
Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 81.5 6.0 9.6 2.9
3m 8.1 10.5
3yr 7.8 -
Outlook and valuation: At the current market price, DBCL is trading at 15.4x
FY2014E consolidated EPS of `14.4. We maintain our Buy view on the stock with a revised target price of `259, based on 18x FY2014E EPS. The downside risks to our estimates include 1) sharp rise in newsprint prices in INR terms, and 2) higher-thanexpected losses/increase in the breakeven period of the new launches.
FY2011 1,260 19.1 259 41.4 31.5 14.1 15.7 5.0 35.0 33.2 3.2 10.1
FY2012E 1,451 15.2 202 (21.9) 23.2 11.0 20.1 4.4 23.0 24.7 2.7 11.8
FY2013E 1,581 8.9 212 5.1 23.3 11.6 19.2 3.7 21.0 24.4 2.4 10.5
FY2014E 1,784 12.8 265 24.6 25.0 14.4 15.4 3.2 22.3 26.9 2.1 8.4
Amit Patil 022-39357800 Ext: 6839 amit.patil@angelbroking.com
Source: Company, Angel Research Note: Operating Expense is adjusted for forex gain/loss.
9.3
19.3
Gross margins
OPM
NPM (RHS)
Investment rationale
Well-planned aggression in business edges DBCL over peers: DBCL, though a dominant No. 2 player in the overall regional print space (trailing behind Jagran Prakashan), enjoys a premium valuation to its peers - Jagran Prakashan (flagship daily Dainik Jagran) and Hindustan Media Ventures (flagship daily Hindustan). We attribute the reason for this trend to DBCLs business model (which is primarily driven by ad revenue) and well thought-out launches in new markets. We believe the companys continuous endeavor to diversify its print business coupled with aggressive expansion into new markets (urban towns beyond metros) backed by exhaustive market research and focus on achieving leadership are the key factors differentiating the company from its peers. The company has been successful in executing its expansion plans with launches in Maharashtra and Jharkhand.
CMP (`)
101 104 222
TP (`)
113 112 259
ROE(%) FY13E
11.3 25.2
CAG # GR Sales
6.5 10.8 10.9
FY14E
12.2 14.6
FY14E
0.6 2.0
FY Y14E
11.4 26.3 2
PAT
8.3 12.5 14.4
19.2
15.4
2.4
2.1
21.0
22.3 2
Source: Company, Ange Research Note denotes CA el e:# AGR for FY2012-14
FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 958 958 958 12.6 814 407 266 133 7 144 (15.5) 15.1 29 115 (22.4) 12.1 40 3 3.7 78 (41.1) 0 78 42 54.1 36 (12) 48 48 (37.1) 5.0 2.8 2.6 (37.3) 1,058 1,058 1,058 10.4 720 328 249 132 12 338 133.8 31.9 38 300 159.7 28.4 25 5 1.9 281 258.9 0 280 106 37.6 175 (8) 183 183 283.5 17.3 10.1 10.0 283.9 1,260 1,260 1,260 19.1 862 383 279 185 16 398 17.7 31.5 43 354 18.1 28.1 15 19 5.4 359 27.9 2 357 98 27.4 259 0.3 259 260 42.2 20.6 14.1 14.1 41.4 1,451 1,451 1,451 15.2 1,115 508 350 243 15 336 (15.4) 23.2 51 286 (19.4) 19.7 9 24 8.0 300 (16.2) 300 98 32.7 202 0 202 202 (22.4) 13.9 11.0 11.0 (21.9) 1,581 1,581 1,581 8.9 1,212 513 412 272 16 369 9.8 23.3 57 312 9.1 19.7 15 21 6.5 317 5.5 317 105 33.0 212 212 212 5.1 13.4 11.6 11.6 5.1 1,784 1,784 1,784 12.8 1,337 535 479 307 16 447 21.0 25.0 63 384 23.1 21.5 14 25 6.3 395 24.6 395 130 33.0 265 265 265 24.6 14.8 14.4 14.4 24.6
Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with
FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 169 89 258 12 563 39 182 1 466 649 4 321 61 183 3 643 829 0 172 69 26 3 872 413 81 331 271 45 24 399 45 105 248 219 180 22 872 1,035 660 112 547 61 39 21 561 193 103 266 207 354 13 1,035 1,100 783 149 634 41 33 16 63 557 173 71 313 255 302 10 1,100 183 5 739 927 2 180 75 30 4 1,216 906 191 715 45 33 46 87 610 188 54 367 329 281 9 1,216 183 5 908 1,096 2 141 75 30 4 1,346 988 248 740 69 33 46 89 718 263 69 386 358 360 9 1,346 183 5 1,087 1,275 2 131 75 30 4 1,515 1,081 311 770 86 33 46 99 851 337 79 435 380 471 9 1,515
Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with
FY2009 FY2010E FY2011 78 29 13 30 36 (16) 98 (295) (18) (313) (1) 219 10 29 180 (36) 81 45 281 38 (14) 25 101 2 229 (38) 3 (34) 251 (242) 42 13 (48) 147 45 193 359 43 (24) 15 98 0 295 (103) 4.22 (99) 2 (149) 69 1 (216) (20) 193 173
FY2012 FY2013E FY2014E 300 51 (20) 9 98 0 241 (127) (29.73) (157) 0.55 8 80 (2) (69) 16 173 188 317 57 63 15 105 (38) 310 (106) (106) (40) 86 4 (129) 75 188 263 395 63 (49) 14 130 (11) 282 (110) (110) (10) 86 2 (98) 74 263 337
Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with
Key Ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) Working capital cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage (EBIT / Interest)
previous year numbers
FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 85.5 48.9 14.5 0.2 4.8 31.8 5.3 2.8 2.6 4.5 0.5 15.3 12.1 0.5 1.4 7.8 0.1 1.5 19.6 15.5 14.0 20.0 2.3 27 68 69 51 1.9 3.4 2.9 22.3 18.3 6.2 0.9 4.0 12.4 4.1 10.1 10.0 12.2 2.0 35.7 28.4 0.6 1.3 22.4 0.0 1.0 45.7 31.4 35.6 40.3 1.6 25 67 59 56 0.2 0.3 12.2 15.7 13.5 5.0 1.4 3.2 10.1 3.7 14.1 14.1 16.5 3.2 44.7 28.1 0.7 1.4 29.1 0.0 0.1 31.2 33.2 38.3 35.0 1.6 21 70 22 55 (0.0) (0.0) 23.7 20.1 16.1 4.4 1.7 2.7 11.8 3.3 11.0 11.0 13.8 3.7 50.1 19.7 0.7 1.5 19.7 0.0 (0.0) 18.9 24.7 27.9 23.0 1.6 30 62 27 44 (0.1) (0.2) 31.0 19.2 15.1 3.7 1.8 2.4 10.5 2.9 11.6 11.6 14.7 4.0 59.3 19.7 0.7 1.5 19.9 0.1 (0.1) 17.8 24.4 28.9 21.0 1.6 26 63 49 42 (0.2) (0.5) 20.2 15.4 12.4 3.2 1.8 2.1 8.4 2.5 14.4 14.4 17.9 4.0 69.1 21.5 0.7 1.6 22.8 0.0 (0.2) 18.8 26.9 32.7 22.3 1.7 26 63 48 47 (0.2) (0.6) 27.2
Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with
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E-mail: research@angelbroking.com
Website: www.angelbroking.com
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Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered
DB Corp. No No No No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Ratings (Returns):
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