Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Jagran Prakashan: An overview - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Apr 4, 2007

    Jagran Prakashan: An overview

    Overview-Financial Year 2005-06: Founded in 1942,Jagran Prakashan Pvt Ltd commands leadership position in newspaper media across all languages. The company went public in FY06. JPL's flagship newspaper- Dainik Jagran is the first newspaper in the country to cross the 20 million-readership mark. The company derives most of its income from advertising revenues. However, the company faces competition from other forms of media, such as, television, radio and websites. Jagran Prakashan Ltd(JPL) is the first print media Company having an overseas (European) strategic partner.

    Product Analysis: IRS (Indian Readership Survey) has ranked Dainik Jagran No.1 for past six years in a row. Even NRS (National Readership Survey) ranks Dainik Jagran No.1 for past two years. Dainik Jagran has more than 25 editions, thus widening its spread over a wider consumer base. Jallandhar, Ludhiana and Amritsar are some of the successful editions the company boasts of. Dainik Jagran provides news as also value added articles related to health, sports, entertainment, travel, lifestyles etc. through its supplements. 'Dainik Jagran' has also been termed as one of the "SUPER BRANDS" of the country. JPL provides promotional marketing, event management services and has outdoor advertising business. It has an Internet portal, which is the most visited Hindi portal. The Company also has Short Code Service (7272) for mobile phone users, a monthly magazine 'Sakhi' targeted at women, Jagran Varshiki, an annual general knowledge digest and various national and state statistical compilations.

    Financial Performance: Between FY03 and FY06, the topline and the bottomline have grown at a CAGR of 24% and 26% respectively. Margins had dropped severely in FY05 but have recovered in FY06 and are expected to remain stable for the coming years. During the past few years, advertisement revenue grew at a CAGR of 23%. The company has a debt to equity ratio of 0.23 and interest coverage ratio of 6.4, leaving the company in a good position to cover its financial charges.

    (Rs mn) FY03 FY04 FY05 FY06 CAGR* (%)
    Net Sales 2,537 3,097 3,764 4,782 23.5%
    Operating Profit 440 403 281 733 18.6%
    OPM (%) 17.3% 13.0% 7.5% 15.3%
    Interest 67 66 88 96
    PBT 266 219 22 488
    Tax 91 71 8 141
    PAT 174 148 15 347 25.8%
    NPM (%) 6.9% 4.8% 0.4% 7.3%

    * (FY03-FY06)

    Future Outlook: Given the expected growth in Indian economy, there is high potential for organic growth in the industry. Inorganic growth can also be expected due to the largely fragmented publication industry. The volume of advertisements in Hindi newspapers is increasing at a faster rate than in English newspapers. Sustained positioning of the brand "Dainik Jagran", brand loyalty, financial capacity, scale of operations, strategic overseas partnership are the key factors that will augment growth and create opportunities for the company. Aiming to increase market share, a second brand of low priced newspaper will be launched shortly. This move will create barriers to entry for any potential new low priced publications. Even if there is price competition, the company is financially strong to meet competition successfully.



    Equitymaster requests your view! Post a comment on "Jagran Prakashan: An overview". Click here!


    More Views on News

    Zee Ent: GST Short term Negative but Long term Positive (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The management believes that GST will aid the advertising spends in the long-run.

    S Chand and Company Ltd. (IPO)

    Apr 26, 2017

    Should you subscribe to the IPO of S Chand and Company Limited?

    GTPL Hathway Ltd. (IPO)

    Jun 21, 2017

    Should one subscribe to the IPO of GTPL Hathway Ltd?

    Zee Ent: Advertising drives revenues (Quarterly Results Update - Detailed)

    Aug 1, 2016

    Zee Entertainment has announced its results for the first quarter of the financial year 2016-17 (1QFY17). The company has reported 18.5% YoY growth in sales and a 13.7% YoY growth in profit after tax.

    Zee Ent: Taxes, lower other income mar bottomline (Quarterly Results Update - Detailed)

    Feb 3, 2016

    Zee Entertainment has announced the third quarter results of financial year 2015-2016 (3QFY16). While the topline grew by 17% YoY, bottomline fell 11% YoY during the quarter.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 22, 2017 (Close)