Buy Jagran Prakashan: Rajesh Jain
"Jagran Prakashan should easily add 20-25% to current levels, the big driver being continued leadership in the Hindi space and a significant saving on newsprint costs."
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| Rajesh Jain, Market Strategist in an interview with ET Now talks about Jagran Prakashan.
A couple of your picks are the likes of Jagran Prakashan, KEC and Voltas, what’s the target price that you are looking at now?
Jagran Prakashan should easily add 20-25% to current levels, the big driver being continued leadership in the Hindi space and a significant saving on newsprint costs, I believe the bottom line is likely to expand by close to 20% just because newsprint as an input cost has been trimmed on by close to 15-16%.
The advertising rates are also moving up and given that the high season is round the corner, I expect advertising income to contribute even greater than the 65% that it has a share of in the total income.
Jagran has got a foothold into the English media space through the acquisition of Mid-Day and it would be interesting to see how it brings the synergies from its Hindi marketing in the northern belt to a Mid-Day in Mumbai and there are upsides for the stock therein. Jagran Prakashan is purely a play on expected higher advertising income and input cost contraction.
A couple of your picks are the likes of Jagran Prakashan, KEC and Voltas, what’s the target price that you are looking at now?
Jagran Prakashan should easily add 20-25% to current levels, the big driver being continued leadership in the Hindi space and a significant saving on newsprint costs, I believe the bottom line is likely to expand by close to 20% just because newsprint as an input cost has been trimmed on by close to 15-16%.
The advertising rates are also moving up and given that the high season is round the corner, I expect advertising income to contribute even greater than the 65% that it has a share of in the total income.
Jagran has got a foothold into the English media space through the acquisition of Mid-Day and it would be interesting to see how it brings the synergies from its Hindi marketing in the northern belt to a Mid-Day in Mumbai and there are upsides for the stock therein. Jagran Prakashan is purely a play on expected higher advertising income and input cost contraction.
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