CLSA maintains buy on DB Corp, lowers target to Rs 185

CLSA has maintained buy rating on DB Corp in the long term and revised target price to Rs 185 from Rs 220. Shares of DB Corp ended up 2.2% at Rs 156.50 on Thursday while BSE Sensex closed 453.07 points up at 39,052.06.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 531.39 crore, down -12.46% from last quarter sales of Rs 607.03 crore and down -8.71% from last year same quarter sales of Rs 582.09 crore. The company has reported net profit after tax of Rs 75.57 crore in the latest quarter.

Investment Rationale


DB Corp stock has underperformed the market over the past due to concerns over ad-revenue growth; with the stock trading at 6.5 times FY21 PE and offering arpund 7% dividend yield, the brokerage believes that the stock offers value. CLSA has cut its FY20-21 estimates by 2-7% and expect company to deliver 6% earnings CAGR over FY20-FY22.