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FUNDAMENTAL

STOCK

JAGRAN PRAKASHAN LTD. launched in Kanpur. In 1953-56 it established its third
and fourth edition in Rewa and Bhopal. In coming
Accumulate Target Price Rs 213 years the company expanded its edition network.
Value Parameters Today, company operates through 37 editions from
BSE Code 532705 Agra, Aligarh, Bareilly, Moradabad, Dehradun,
NSE Symbol JAGRAN Haldwani, Dharamshala, Bhopal, Gorakhpur, Hisar,
CMP (As on 01st Mar, 2017) Jammu, Jhansi, Kanpur, Lucknow, New Delhi, Panipat,
Face Value Rs 186 Allahabad, Varanasi, Bhagalpur, Muzaffarpur, Patnar,
52 Week High/Low Rs 2 Siliguri, Dhanbad, Jamshedpur, Ranchi and Meerut.
Market Cap (Rs cr) It has presence in 11 states namely Uttar Pradesh,
EPS (Rs) (FY16) Rs 213/144 Uttarakhand, Punjab, Haryana, Bihar, Jharkhand,
TTM PE ratio (x) 6,165 Himachal Pradesh, Madhya Pradesh, Delhi, West
10.0 Bengal and Jammu & Kashmir.
13.7
Investment Rationale
Shareholding Pattern % (Dec’ 16) § Company has preferred the inorganic route for

11.5 growth over the last few years as the management
12.4 likely perceives this as relatively ‘low-risk’. By going
for the acquisition strategy, it has been able to avoid
15.4 60.8 large losses inherent in any significant green-field
expansion.
Promoter FII DII O thers § Advertising growth is expected to accelerate with
an eventual recovery in the Indian economy and
Company Overview considering company’s status as the most read Hindi
newspaper in the country and its strong presence
Jagran Prakashan (JPL), incorporated in 1975, has business in the rapidly growing Hindi markets should boost
interests in area of newspapers, outdoor, internet, magazines, profitability.
below the line marketing solutions, and mobile value added § Acquisition of ‘Nayi Duniya’ added new market (MP
services. The company publishes Dainik Jagran, a Hindi daily and Chhattisgarh) to its regional footprint and the
newspaper. Dainik Jagran launched its first edition in 1942 in integration of Radio City would be important factors
Jhansi and is brainchild of late Puran Chand Gupta. steering the growth ahead.
The newspaper was launched in order to reflect the free voice § Music Broadcast Ltd. subsidiary of the company has
of the people. Later in the year 1947, the second edition was come up with a public issue. This will further unlock
value for the company.

Concern
§ Business stays sensitive to the news print prices

and any intensification in the prices coupled with
exchange rate fluctuation can adversely affect the
profitability.
§ Company earns 75% of its revenue from advertising
which is positively correlated to the economic
activity. Any delay in economic recovery can harm
the revenue potential of the company.

Valuations

At CMP of Rs 186 per share the stock trades at trailing
P/E multiple of 13.7 (x). We have “Accumulate” rating
on the stock with a fair value of Rs 213 per share.

4 ARIHANT CAPITAL ¡ MARCH 2017