Mehabe score: 3 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
D. B. Corp is Indias largest Newspaper Group, and a leading and diversified media player. We enjoy a dominant position across major markets, states and languages.(Source : 201903 Annual Report Page No: 04)Site:DBCORP
Market Cap:
Rs 1,982 cr
Price:
113.0
Trading pe:
15.0x
Book-value:
95.9/share
Div yield:
8.83 %
Earning yield:
7.74%
Face-value:
10.0/share
52week high:
125.00
52week low:
66.75
Technical Analysis
Stock trades at 113.0, above its 50dma 95.9. It also trades above its 200dma 90.38. The stock remains bullish on techicals
The 52 week high is at 125.00 and the 52week low is at 66.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.18 times its book value
– has been maintaining a healthy dividend payout of 54.87%
Weakness
– The company has delivered a poor sales growth of -5.95% over past five years.
– has a low return on equity of 12.89% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 152.67 days.
Competition
– The industry trades at a mean P/E of 10.8x. Jagran Prakashan trades at the industry’s max P/E of 19.45x. DBCORP trades at a P/E of 15.0x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 7.0. DBCORP has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 20.5%. The max 1- month return was given by Hindustan Media: a return of 41.1 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 457.0 cr compared to Rs 487.0 cr for period ended Mar 2020, a fall of 6.2%
Operating Profits reported at Rs 101.0 cr for period ended Mar 2021 vis-vis 66.0 for period ended Mar 2020 .
Operating Margins expanded 854.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 3.54 compared to Rs 5.66 for previous quarter ended Dec 2020 and Rs 1.37 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1508.0 cr for period ended Mar 2021 vis-vis sales of Rs 2224.0 cr for the period ended Mar 2020, a fall of 47.5%. The 3 year sales cagr stood at -13.3%.
Operating margins shrank to 20.0% for period ended Mar 2021 vis-vis 22.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 141.0 cr for period ended Mar 2021 vis-vis sales of Rs 275.0 cr for the period ended Mar 2020, falling 95.0%.
Company reported a poor Net Profit CAGR of -24.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 13.0% over the last 3 Years. – The stock has given a return of 63% on a 1 Year basis vis-vis a return of -25% over the last 3 Years. – The compounded sales growth on a TTM bassis is -32% vis-vis a compounded sales growth of -13% over the last 3 Years. – The compounded profit growth on a TTM basis is -52% vis-vis a compounded profit growth of -26% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 13.23% vis-vis 14.83% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 10.74% vis-vis 9.14% for Dec 2020
Conclusion
– Stock is trading at 1.18 times its book value
– has been maintaining a healthy dividend payout of 54.87% – The company has delivered a poor sales growth of -5.95% over past five years.
– has a low return on equity of 12.89% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 152.67 days.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 95.9 and is trading at 113.0, thus bullish price action wise.
