rohit,
If u compare the valuations of DB Corp and JP then also there’s a bit of valuation gap. Both companies have almost similar financial characteristics in terms of balance sheet and dividend payout etc. DB is at around 20 PE while Jagran is close to 14-15 PE.
Plus while DB has been static in terms of growth, JP has shown consistent growth.
And yes if u look at the whole picture there seems to be no value assigned to the digital and radio business.
For JP, some things are falling in place. Mainly the other newspapers besides Dainik Jagran which were making losses are now breaking even and some are even turning profitable.
As mentioned in the q1 concall the management is making some propositions to advertisers by providing bundled packages etc. while not specifically taking any strong price cuts.
The q2 concall also is interesting where management comes across as very confident about next few quarters. q3 is also likely to be good bcos of navratri and diwali falling in q3.
In a question regarding possibility of value unlocking by demerging the radio division, the reply was that currently it is not being considered but they did not rule out the possibility of value unlocking in future.
They are also looking out to sell properties to realise value although they mentioned that they will not sell in distress.
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