Why This Media Stock Is A Good Bet?

DB Corp has presence across newspapers, digital media, radio etc., and owns Dainik Bhaskar. The Dainik Bhaskar group of newspapers is urban India's number 1 newspaper group.

Dainik Bhaskar has the largest NCCS-AB and NCCS-A; readers in urban India. In fact, it is the fourth largest circulated newspaper in the world. What's most interesting is that while it continues to maintain its leadership position in key markets in the print business, the digital business has also been seeing a rapid growth.

media stocks

The company's own digital revenues have jumped 10 fold in the last few years from Rs 5.7 crores in FY 2012 to Rs 52.9 crores in FY 2018. In fact, Bhaskar.com is the No 1 hindi news website in the country.

For the month of March 2018, the company reported a staggering 74.3 million unique visitors to its various sites.

It is believed that the next wave of 200 million internet users will be Indian language users and of these 60 per cent of the Indian language internet users are likely to be Hindi.

Even its own radio business is doing well, as 94.3 MY FM continues to be no.1. in markets of Madhya Pradesh, Chhattisgarh and Rajasthan and has the largest network in Chandigarh, Punjab and Haryana.

Now, over the next 1 year, the stock maybe a good bet, given elections in states like Madhya Pradesh, Rajasthan and Chattisgarh, where it enjoys leadership position in key markets like Madhya Pradesh.

With elections to the central government slated in the next one year, media stocks are likely to rebound strongly.

In fact, advertisement revenues are likely to spurt, as political outfits resort to digital as well as print media advertisements. The stock is trading at a p/e of just 15 times, one year forward earnings. With strong anticipated growth, it is likely that we may see superb gains in the years to come.

The shares of DB Corp have fallen from levels of Rs 392 to the current levels of Rs 261. A good price to enter at the current levels.

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