DB Corp Ltd., incorporated in the year 1995, is a Small Cap company (having a market cap of Rs 1911.45 Crore) operating in Media & Entertainment sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 496.58 Crore, up 41.97 % from last quarter Total Income of Rs 349.78 Crore and down -17.49 % from last year same quarter Total Income of Rs 601.83 Crore. Company reported net profit after tax of Rs 99.04 Crore in latest quarter.
Investment Rationale
The company has curtailed dividend payout to shareholders (from 60%+ in earlier years to ~37%) that was disappointing, considering its peer has been returning more cash to shareholders. Also, the impact of rising newsprint prices remains a concern. The stock has also run up sharply, which, thebrokerage believes, prices in all positives pertaining to cost savings. It downgrades the stock from BUY to HOLD rating. It now values the stock at 7x FY23E EPS with a target price of Rs 120 (earlier Rs 95).
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
