MOSL: D B CORP (Neutral)-Circulation drive to continue; Target to increase ad market share on higher circulation
D B CORP: Circulation drive to continue; Target to increase ad market share on higher circulation
(DBCL IN, Mkt Cap USD0.7b, CMP INR265, TP INR300, 13% Upside, Neutral)
We attended DBCL’s analyst meet. Our key takeaways:
- DBCL intends to continue its circulation drives in Bihar, Gujarat and Rajasthan to attain leadership. Once the circulation drive is complete, it will resume cover price increases in 2-3 quarters. With peers curtailing circulation to mitigate the cost of high newsprint prices, DBCL believes it is the opportune time to improve market share.
- The management targets to increase its ad market share on the back of higher circulation through a mix of yield and volume improvements across Bihar, Gujarat and Rajasthan.
- The digital business remains work-in-progress (WIP); its contribution to revenue is likely to be miniscule in the next few years. To improve reader stickiness, DBCL intends to shift focus from providing content on social platforms like FaceBook to own websites and mobile applications.
- New phase-III radio stations have turned profitable.
DB Corp Limited. D. B. Corp Limited is a print media company, which is engaged in the sale of newspapers and magazines, and advertisement revenue. The Company also has a presence in radio and digital sectors. Its segments include Printing/Publishing, Radio, Event, Internet and Power. Its Printing/Publishing segment includes newspaper, magazines and printing job work. Its Radio segment includes broadcasting of radio. Its Event segment includes event management. Its Internet segment includes integrated Internet and mobile interactive services. Its brands in publishing business include Dainik Bhaskar (Hindi daily), Divya Bhaskar and Saurashtra Samachar (Gujarati dailies), Divya Marathi (Marathi daily), DNA and DB Post (English dailies), and monthly magazines, such as Aha Zindagi and Bal Bhaskar. Its Internet business includes the Websites of Dainik Bhaskar, Divya Bhaskar and Divya Marathi having newspapers in e-paper category and dainikbhaskar.com, divyabhaskar.com, dailybhaskar.com and divyamarathi.com.
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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