Motilal Oswal - D B Corp Ltd (533151) MOSL: D B CORP (BUY)-Demonetization hangover on ad growth continues-opex levers salvage margins

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Motilal Oswal

MOSL: D B CORP (BUY)-Demonetization hangover on ad growth continues-opex levers salvage margins

â€‹D B Corp: Demonetization hangover on ad growth continues; opex levers salvage margins

(DBCL IN, Mkt Cap USD1.0b, CMP INR368, TP INR460, 25% Upside, Buy)

Operational performance below expectations; PAT cushioned by lower interest/tax outgo: DBCLâ€™s 4QFY17 EBITDA declined 3% YoY to INR1.12b, 6% below our estimate of INR1.2b. The miss was driven by depressed revenue â€“ both print ad and circulation revenue disappointed. Opex levers partially cushioned the impact of the subdued revenue on margins.
Demonetization hangover continues to impact ad growth: Print ad revenue declined 2.7% YoY to INR3.1b in 4QFY17 (4.6% below expectations), as the impact of the demonetization continued. Real Estate, FMCG, Consumer Durables and Retail remained laggards. Auto and Education ad spends have been healthy. Spends from FMCG are expected to improve in FY18. The management is confident of delivering ad growth matching the ~14% ad growth of 1HFY17. We have modeled 10% CAGR in ad revenue over FY17-19.

22/05/2017 12 EN

Underlying

D B Corp Ltd

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India

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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MOSL: D B CORP (BUY)-Demonetization hangover on ad growth continues-opex levers salvage margins

MOSL: D B CORP (Buy)-Focus on circulation ramp-up to continue

MOSL: D B CORP (Buy)-Circulation drive, ad recovery bode well

MOSL: D B CORP (Buy)-In-line quarter-maintain estimates and target price

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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