Trending stocks
$PEL  
$SRF  
$INFY  

Looking for growth stocks? Pay attention to Jagran Prakashan

06-06-2016 • About Jagran Prakashan ($JAGRAN) • By InTwits

Jagran Prakashan is a growth stock in Publishing industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.

Growth story


Jagran Prakashan showed fast growth in the last financial year. The company's revenue surged on 19.0% in FY2016. In addition to revenue Jagran Prakashan also keeps delivering EBITDA growth. It was 30.7% in FY2016

In the last 3 years the company showed fast revenue growth of 11.4% from FY2013 to FY2016 annually. EBITDA surged on 26.2% from FY2013 to FY2016 annually.

Jagran Prakashan ($JAGRAN) financials for the last 5 years

mln. INR FY2012 FY2013 FY2014 FY2015 FY2016
Revenue13,55715,21817,02717,69821,065
Revenue growth, %12.3%11.9%3.9%19.0%
SG&A, %
EBITDA3,1702,9733,9584,5685,970
EBITDA growth, %-6.2%33.2%15.4%30.7%
EBITDA margin, %23.4%19.5%23.2%25.8%28.3%
Net Income1,7832,5512,2623,0804,447
Net Income margin, % 13.2%16.8%13.3%17.4%21.1%
 
CAPEX1,5221,0079025473,846
CAPEX/Revenue, %11.2%6.62%5.30%3.09%18.3%
Debt6,6764,8404,8975,4795,120
Cash4515172434,927451
Net Debt/EBITDA2.0x1.5x1.2x0.1x0.8x
 
ROIC, %19.7%11.3%19.7%20.8%24.3%
ROE, %24.5%30.3%23.9%29.4%32.8%

Profitability and return on investment


EBITDA growth was supported by margin expansion. EBITDA margin increased on 2.50 pp from 25.8% to 28.3% in FY2016. In the last 3 years Jagran Prakashan showed fast EBITDA margin growth of 8.80 pp from 19.5% in FY2013 to 28.3% in FY2016.

Jagran Prakashan shows attractive ROIC at 24.3% for the last 12 months which assumes stable development model. Three years ago it was considerably lower at 11.3%. For the last three years the average ROIC was 21.6%.

Jagran Prakashan's Net Income margin surged on 3.70 pp from 17.4% to 21.1% in FY2016. In the last 3 years Jagran Prakashan's Net Income margin surged on 4.30 pp from 16.8% in FY2013 to 21.1% in FY2016.

Jagran Prakashan operates at ROE of 32.8%. It's average ROE for the last three years was 28.7%.

Capital expenditures (CAPEX)


To fuel this fast growth Jagran Prakashan had to invest in CAPEX.In FY2016 the company had CAPEX/Revenue of 18.3%. The company's CAPEX/Revenue surged on 11.6 pp from 6.62% in FY2013 to 18.3% in FY2016. Average CAPEX/Revenue for the last three years was 8.88%.

Leverage (Debt)


Jagran Prakashan has low debt level at 0.8x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period leverage dropped on 0.67x from 1.45x in FY2013 to 0.78x in FY2016.

Peers in Publishing


Below you can find Jagran Prakashan benchmarking vs. other companies in Publishing industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.

Top companies by Revenue growth, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top
Just Dial ($JUSTDIAL)39.8%27.2%27.9%17.1%
Hindustan Media Ventures ($HMVL)6.6%14.7%12.2%12.2%
Ht Media ($HTMEDIA)2.3%7.4%4.0%9.2%
D B Corp ($DBCORP)13.7%19.3%8.1%0.6%
 
Median (4 companies)10.2%17.0%10.1%10.7%
Jagran Prakashan ($JAGRAN)12.3%11.9%3.9%19.0%


Top companies by EBITDA margin, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Just Dial ($JUSTDIAL)26.0%27.8%39.5%36.6%36.8%
Next Mediaworks ($NEXTMEDIA)31.4%
Sambhaav Media ($SAMBHAAV)30.7%
D B Corp ($DBCORP)25.9%24.8%27.1%28.1%26.1%
Hindustan Media Ventures ($HMVL)16.3%17.7%20.8%21.0%30.3%
 
Median (7 companies)22.0%21.6%24.0%28.1%28.2%
Jagran Prakashan ($JAGRAN)23.4%19.5%23.2%25.8%28.3%


Top companies by CAPEX/Revenue, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top
Ht Media ($HTMEDIA)3.8%6.4%6.9%4.1%23.2%
Just Dial ($JUSTDIAL)8.9%10.0%4.5%11.5%13.7%
D B Corp ($DBCORP)8.9%3.6%5.5%3.6%9.9%
Hindustan Media Ventures ($HMVL)7.7%1.2%5.8%1.9%9.0%
 
Median (4 companies)8.3%5.0%5.7%3.8%11.8%
Jagran Prakashan ($JAGRAN)11.2%6.6%5.3%3.1%18.3%


Top companies by ROIC, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Just Dial ($JUSTDIAL)58.7%32.4%34.2%31.7%33.3%
D B Corp ($DBCORP)25.7%25.8%32.7%32.9%28.2%
Hindustan Media Ventures ($HMVL)17.7%18.3%22.3%19.6%26.1%
Ht Media ($HTMEDIA)14.7%14.2%10.9%8.6%16.5%
Arnav Corporation ($ARNAVCORP)
 
Median (8 companies)14.7%14.2%22.3%25.7%27.1%
Jagran Prakashan ($JAGRAN)19.7%11.3%19.7%20.8%24.3%


Top companies by Net Debt / EBITDA

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Ht Media ($HTMEDIA)0.5x0.6x1.1x0.6x1.5x
Hindustan Media Ventures ($HMVL)-0.2x-0.2x-0.0x0.3x0.5x
D B Corp ($DBCORP)0.2x0.1x0.0x-0.1x0.1x
Arnav Corporation ($ARNAVCORP)0.0x0.0x0.0x
Sambhaav Media ($SAMBHAAV)1.9x2.0x0.0x0.0x
 
Median (7 companies)0.2x0.6x0.0x0.0x0.0x
Jagran Prakashan ($JAGRAN)2.0x1.5x1.2x0.1x0.8x