Thread by @SkCapitalist

#Jagran Prakashan
Jagran Prakashan is engaged primarily in printing and publication of #Newspapers and #Magazines in India.
The other activities of the company comprise outdoor advertising business, event management and activation services and digital business.

Company’s revenue comes from #Print, #Radio, #Outdoor and #Digital. Outdoor was 7% revenue so we can write that off in current conditions.
They have a healthy 21% market share in #Radio Broadcasting.

Looking at other breakup it can be segregated as 20% from sales of newspaper and 80% comes from different form of #advertising.

In the current crisis, digital segment which reported high double digit growth and some profit against loss in Q4FY19. So digital segment has turned a corner.

As per management commentary there is sufficient liquidity with the company to tide over from the current crisis. There is no doubt that the sector is facing some tough times right now.
However please find some business highlights as below:

#Jagran Prakshan is the #Holding company of Radio City with 73.21% shareholding. It owns multiple brands as highlighted below;

All in all we can consider that the results will be poor for some time to come but it has corrected a lot hence looking into it. Newspaper circulations are back to 80% levels now.
Advertising revenues will start showing return to normalcy from Q2/Q3 FY 2021.

Company has an almost debt free status and it is net debt free. Some experts from CRISIL Believe the outlook as below:

With elections coming up in 2022 in multiple status, Copnaies like #Jagran & #DB Corp will benefit going ahead. The value proposition looks even better if we look at shareholding pattern.

Promotor has increased stake from 61.6% in Sept 2019 to 65.02% in March 2020, similarly mutual funds have upped their stakes. Company is trading at 0.6X of it’s book value with a very good dividend yield.

Company had very good cash flows and highly prudent & beneficial policies for shareholders, this is visible from the cash flow chart below:

Cash flow from #Operating activities has always been positive. Good operating ratios. Looking at the stock price it is trading at a P/E of 4, where historically P/E multiple was 16.

Even if I consider a drop in profitability of 75% which is very massive and I feel too pessimistic still it will be considered fairly valued, hence the downside is very very low. Company is trading at a lifetime low.

Please let me know if I am missing on any red flags, would love to understand if we should stay away from this counter. Expecting a good return in a period of 1-2 year upto 3X of my investment. This will be a game of #Patience. @SandeepSStars @Prateek21882108 @harshitsarawagi

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