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Stock Market Analysis of companies with music divisions

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This article looks at the financial performance on the Stock Market of India’s largest newspaper Dainik Jagran (parent company of Radio City), The Times Group’s Radio Mirchi, Shemaroo, and HT Media (parent company of Radio One, Fever FM, and Radio Nasha), during the month of June 2019.

 

1. Dainik Jagran

Jagran Prakashan Ltd is one of the more conservative media houses in the country. Unlike the Times of India Group, this media house moves quite slowly and restricts itself to Hindi speaking markets, the only exception being Mumbai where it picked up Mid-Day a few years back.
Stock Price- The stock price movement of Dainik Jagran has been quite erratic over the past 365 days. On July 24, 2018, it stood at Rs. 133 while it crashed down to Rs. 104 on July 12, 2019. The stock stood at Rs. 93 on February 22, 2019.
Key Ratios- Let’s look at some key ratios of JPL. Since March 2015, the revenue per share has grown nearly 50% from Rs. 55.76 to Rs. 79.71. While its EPS has remained more or less constant in this period (Rs. 9/9), its Return on Networth has eroded by 50 % (Rs.29.4 v/s Rs. 15.01).
If you are considering to invest in Jagran Prakashan Limited, take note of the Altzman Solvency score of this company; it is 4.60. This means that your money would be safe but would be very close to the grey.

 

2. Radio Mirchi

Stock Market price- Over the past one year, the stock price of Mirchi has collapsed from Rs. 708.3 ( July 16, 2018) to Rs. 405.9 ( July 12, 2019). This is a cause for worry for new as well as existing investors. Over the last one month, this slide has continued, though the gradient is not that steep. One reason for this share price decline is that the market doesn’t see the fm market promising enough.
It is expected that in Q1 ( 2019-20), Mirchi would report a net profit at Rs. 10.2 crores up 9.7% year-on-year (up 47.1% quarter-on-quarter).
Profit and Sales of – On a quarterly basis, the company posted a 64% ( 19.38 crores)growth in Q4 ( 2018-19). The corresponding figure for Q4 ( 2017-18) was Rs. 11 crores. Sales wise, the company grew 10% ( 175.77 crores) in the same period.
Key Ratios as on March 2019- Basic EPS- Rs. 11.31; Net Profit per Share- Rs. 11.31; Return on Networth/Equity (%)- 5.78

 

3. Shemaroo

Stock Market price Movement- Over the past one year, the stock price of Shemaroo has oscillated between Rs. 518 (November 2018 ) and Rs. 305 (July 11, 2019). The 52 week high and low prices are Rs. 543.1 and Rs. 289, respectively.
Sales and Profit /Loss- Sales have grown steadily from Rs. 321.9 in 2015 to Rs. 548.05 in 2018. Profit after Tax has also grown regularly from Rs. 41.81 crores (2015) to Rs. 86.11 crores ( 2019).
Key Ratios
RoE of Shemaro is 15% and quite impressive. the industry average is 3-3% so Shemaroo looks like a good buy.
Debt to Equity Ratio; it stands at 0.35% which is quite low.
Reasons to buy Shemaroo stock:
a) Earnings are expected to grow annually by 13.4%
b) Shemaroo’s revenues are also expected to grow annually by 12.1%
c) EPS is expected to go up from Rs. 30.52 ( March 31, 2019) to Rs. 39.97 ( March 31, 2021)

 

4. HT Media 

Share Price Movement in the last one month- Rs. 27.90 (June 17), Rs. 28.55 ( July 12). 52 week high- Rs. 74, low- Rs. 24.75
Sales and Profit/Loss- Q4 (2018-19) revenues fell by Rs. 24 crores to Rs. 620.97 crores from Q4 (2017-18). Profits too fell by Rs. 21 crores in this period on the Stock Market.
It is expected that print media stocks would suffer because of the removal of 15% subsidy on newsprint from this budgetary year onwards.

 

 

 

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Abhishek Singh

Author: Abhishek Singh

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