Hold HT Media; target of Rs 120: ICICI Direct

ICICI Direct recommended hold rating on HT Media stock market with a target price of Rs 120 in its research report dated January 15, 2018.

ICICI Direct's research report on HT Media stock price

Revenues at Rs 625.4 crore (fell 3.8% YoY) came in below our estimate of Rs 629.2 crore. Hindi ad revenue came in at Rs 177 crore, up 4.9% YoY vs. our estimate of ~3% YoY growth. English ad revenue declined 7.6% YoY (our estimate: ~7% decline). The performance of radio was disappointing at 4.8% YoY revenue growth. Digital business revenues were impacted by weak performance of shine.com The company’s continued effort on cost savings aided EBITDA margins, which came in at 21.5%. On the costs front, savings in administrative and other expenses aided the EBITDA beat Reported PAT came in higher at Rs 124.4 crore as there were certain one-offs in the quarter pertaining to (1) other income included one-time gain of Rs 31.2 crore on sale of land & building, (2) tax reversal of Rs 23.6 crore arising from finalisation of the return of the previous year, which was recognised during the quarter. Adjusted PAT came in lower at Rs 69.6 crore (vs. expectation of Rs 77 crore).

HT Media net income jumps over two-fold

HT Media today reported over two-fold jump in consolidated net profit at Rs 66.22 crore for the quarter ended September 30, 2017, mainly on account of lower expenses.
The media firm had posted a net profit of Rs 30.93 crore during the same period previous fiscal, HT Media said in a regulatory filing.

The company's net sales during the quarter under review however decline 6.90 per cent to Rs 560.63 crore as against Rs 602.23 crore in the year-ago period.
Total expenses during the period stood at Rs 507.62 crore compared to Rs 606.67 crore in the July-September quarter of 2016-17.

Revenue from printing and publishing business was down at Rs 494.89 crore during the quarter as against Rs 525.95 crore in the year-ago period.

HT Media share price

HT Media tanks on fixing share buyback price

HT Media has tanked 13% to Rs 97, falling over 16% from intra-day high, after its board approved buyback of company’s equity shares at a maximum price of Rs 110 per share.

The buyback price is 1.8% discount than its previous day’s close of Rs 112 on BSE.
“The board proposed to buyback equity shares up to an aggregate amount not exceeding Rs 25 crore, from the open market through stock exchanges,” HT Media said in a statement.
Meanwhile, HT Media, publishers of the Hindustan Times newspaper, has reported a robust 82% year-on-year (yoy) jump in net profit at Rs 40 crore for the quarter ended March 31, 2013 (Q4) due to lower raw material cost and other expenditure.
The board also recommended a dividend of 20% or Rs 0.40 per equity share of Rs 2 each for the financial year 2012-13.

The stock opened at Rs 113 and hit a high of Rs 116 on NSE. A combined 1.07 million shares changed hands on the counter so far on NSE and BSE.

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