Jagran Prakashan Vs HT Media - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Jagran Prakashan Vs HT Media

Jul 9, 2008

Increasing literacy, growing consumerism, entry of global brands in the country and opening of the sector to foreign investors has led to the growth in print media. Print majors are expanding their presence and product offerings. This has led to increasing competition and price wars. In this article, we shall compare the north India newspaper majors Jagran Prakashan and HT Media. About the companies
Jagran Prakashan:
Jagran Prakashan Limited (JPL) publishes Dainik Jagran, which is the largest read Hindi daily in India. It has 37 editions with more than 150 sub editions. It sells 2.7 m copies and has a daily readership of 16.5 m (IRS 2007 R2). It is circulated in Northern and Central India.

  • A look at Jagran Prakashan

    HT Media: Started in 1924, HT Media (HTML) is one of India's leading print media companies. HTML is the second largest player in English via its brand, Hindustan Times (HT) and the fourth largest player in Hindi through Hindustan. It covers 65% of the population and has a readership base of 8.6 m (IRS 2007 R2) readers and a daily circulation of 2.25 m copies.

  • HT Media: A complete package

    Let us have a look at the financial and operating performance of the two companies in recent times.

    ParameterUnits Companies
    JAGPHT Media
    Operating parameters
    Net Sales (FY08)Rs m7,496 11,862
    Sales CAGR - (FY04-08)(%)24.7 29.9
    Operating margin (FY08)(%)21.9 18.8
    OPM average - (FY04-08)(%)16.8 12.9
    Profits CAGR - (FY05-08)(%)8.8 7.4
    Net margin (FY08)(%)13.1 12.2
    Return ratios average (FY05- FY08UA)
    RoNW(%)15.0 10.1
    RoA(%)8.5 6.5
    Debt to equity 0.50.3
    Price to earnings (TTM)(x)19.916.8
    Price to book value 3.8 3.2

    Revenues: HT Media has grown at a faster rate than Jagran Prakashan on account of the expansion of its English newspaper into new territories. English papers command higher rates than the Hindi newspapers. With the launch of Hindustan Times in Mumbai and Mint (business daily), HT Media is able to garner higher ad revenues. Ad revenues for FY08 formed around 85% of its sales. In case of JAGP, ad revenues form 65% to 70% of its revenues. The new avenues like radio and internet (in case of HT Media) and OOH and event management (JAGP) are still in the investment phase.

    Operating parameters: Jagran Prakashan has been more successful than HT Media in managing costs. HT Media, on account of its different newspaper offerings, has higher staff costs and other expenses. Further, the new ventures of JAGP are less capital intensive. In case of HT Media, for the radio segment, it has to pay license fees, which increases its costs. Also, in recent times the company has looked at acquisitions for its internet ventures, which has led to higher expenses.

    On the bottomline front, HT Media reported losses in FY04. Its profits have grown by 51% CAGR over the last 3 years. JAGP's profit has jumped by 88% during the same period on account of higher margins and lower tax outgo. JAGP's average tax rate has been around 27%, while HT Media has a 31% effective tax rate. The management of HT Media has indicated that the same is expected to reduce going forward.

    Ratios: While both the companies have a low debt to equity ratio, in terms of return ratios, JAGP gives higher returns. Higher profit margins and effective management has led to better performance by JAGP. HT Media's ventures in radio require more investment than JAGP's OOH and event management and this has been reflected in the profitability numbers.

    Going forward…
    Jagran Prakashan is trading at a premium as compared to HT Media. Both the companies have plans to continue expanding geographically to bolster growth in the long term. They are expanding their capacities and launching new offerings. Inorganic growth has also been on the radar for both the companies. However, in terms of execution, HT Media faces higher risk. The radio and the Internet venture will take a longer time to breakeven than JAGP's OOH and event management ventures.

  • Equitymaster requests your view! Post a comment on "Jagran Prakashan Vs HT Media". Click here!


    More Views on News

    JAGRAN PRAKASHAN 2020-21 Annual Report Analysis (Annual Result Update)

    Nov 1, 2021 | Updated on Nov 1, 2021

    Here's an analysis of the annual report of JAGRAN PRAKASHAN for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of JAGRAN PRAKASHAN. Also includes updates on the valuation of JAGRAN PRAKASHAN.

    JAGRAN PRAKASHAN Announces Quarterly Results (3QFY21); Net Profit Down 6.0% (Quarterly Result Update)

    Feb 10, 2021 | Updated on Feb 10, 2021

    For the quarter ended December 2020, JAGRAN PRAKASHAN has posted a net profit of Rs 769 m (down 6.0% YoY). Sales on the other hand came in at Rs 4 bn (down 27.2% YoY). Read on for a complete analysis of JAGRAN PRAKASHAN's quarterly results.

    What Fuelled the Sudden Surge in PVR and Inox Shares Today (Views On News)

    Sep 27, 2021

    Shares of both multiplex chain operators surged almost 18% to hit their 52-week highs.

    8 Penny Stocks with Exceptionally High Promoter Holding (Views On News)

    Sep 25, 2021

    While high promoter holding is a good thing, there can be rare cases where penny stock promoters use misleading information about the actual valuation.

    Shareholder Activism Triggers a 30% Rally in Zee Entertainment Shares (Views On News)

    Sep 14, 2021

    Zee Entertainment shares zoom after top investors seek CEO and MD Punit Goenka's removal.

    More Views on News

    Most Popular

    Infosys vs TCS: Which is Better? (Views On News)

    Nov 26, 2021

    In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

    This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

    Nov 24, 2021

    Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

    How to Hit Rs 100 Crore Wealth in Your Lifetime (Equitymaster Wealth)

    Nov 15, 2021

    This is how you can achieve the ambitious goal of a net worth of Rs 100 crore.

    Don't Sell these Stocks if the Market Falls (Profit Hunter)

    Nov 17, 2021

    These are the 3 types of stocks that you should not sell in a market crash.

    MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

    Nov 20, 2021

    The Rs 19 bn issue is set to hit the market soon.


    Become A Smarter Investor
    In Just 5 Minutes

    Multibagger Stock Guide 2022
    Get our special report Multibagger Stocks Guide (2022 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Nov 26, 2021 (Close)


    • Track your investment in JAGRAN PRAKASHAN with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks