Buy Sandesh Ltd. 526725 SANDESH @ 892
Sandesh Group is over 90 years old, the journey of Sandesh as a newspaper started in 1923, and today Sandesh is Gujarat’s largest and most influential media house, having a strong foothold across media landscape, such as :
Newspaper : Sandesh, which is published from Gujarat & Maharashtra is the largest media Gujarati company with 7 editions across Gujarat & Mumbai.
Television : Sandesh News (Award winning channel) is the region’s fastest growing 24x7 Gujarati News Channel, which reaches out to the most affluent and powerful gujarati audience.
Digital : Harnessing the potential as a future of communication, Sandesh is among first to launch a Gujarati news Smart Phones App in India to provide information and news in real times as it happens, and continues to have an expanding digital presence of over 5 million followers across all platforms.
Magazine & Weekly Publications : Through “Agro Sandesh” which provides relevant and enriching content to the farming, Dairy and co-operative sector, thus contributing the sector positively. “Stree” is popular women focused magazine which reaches out to women across all classes and addresses the issues related to them directly.
OOH (Out of Home) Media Solutions : “Spotlight” Brand Management focuses on every aspect of Brand Launching, upto Brand Building and enhancing the brand message by going beyond just grabbing eyeballs, but creating a lasting buzz around the brand. Company has its sites at all the major commercial areas in Ahmedabad. The company has procured various prestigious tenders like BRTS, Bus Shelters, AUDA & Ahmedabad Municipal Corporation.
Besides all of the above, the company also successfully operates its Real Estate (by the name of Applewoods Estates Pvt Ltd, by monetizing its land bank in Ahmedabad) and Finance business.
To cover the entire geography of Gujarat state, the company has its printing facilities at Baroda, Surat, Rajkot, Bhavnagar, Bhuj to cater Semi urban & rural areas. The regional offices are located at Mumbai, Delhi, Kolkata, Bangaluru, Chennai & Pune. Company enjoys a strong regional franchise, where it enjoys strong readership loyalty.
Future Outlook : According to FICCI-KPMG Report 2014, the print sector continued to buck the global slowdown trend and the sector grew at CAGR of 8.5% last year to touch Rs 243 Billion. The print industry is expected to grow at a CAGR of over 9% for 2013-18, as against estimated 8.7% expected in 2013. Vernacular market saw 10.8% growth in advertisement revenues, with English print reporting a sluggish growth of 5.2%. The increase in population, literacy rate and reach has led to increased circulation and readership of the newspapers in India. The company is steadily increasing its geographical presence, which helps improve its circulation and readership of its publications.
Sectors which spent heavily on print were FMCG (12.3%), Automobiles (11.7%), Education (9.7%), and Real Estate (8.7%). FMCG, Telecom and Automobile will continue to increase their ad-spent to push the sales due to slowdown, and majority will likely to come to Print media, due to its affordability, vast reach and direct impact.
According to FICCI-KPMG Report 2014, among various media, Print and Television continued to be the primary media platforms, claiming nearly 82% of total revenue and could continue to be the most dominant media for the next 5 years.
Valuation : This closely held DEBT FREE, Cash Rich company, with a tiny equity of Rs 7.61 Cr & Reserve of 445 Cr (Book Value Rs 651 per Share), where promoters hold 74.81% (Zero Pledge), HNIs hold 12.12% and rest (~13%) is held by Public, is trading at a PE of only 8.97 times TTM EPS of Rs 75 per Share (Average Industry PE stands at 18 times). At CMP of 900, the share is available at a Price to Book value of close to 1.5 (Industry Price to Book value 4.5 times). Market Cap to Sales Ratio is 1.4 (Industry Average is 4.5 times).
With blockbuster fundamentals, one thing is clear that the company is now on a high growth path and that will continue going forward, the company can easily post an EPS of Rs 110 for FY 16, which makes this stock one of the cheapest among media company at only 9 times PE at CMP of 900 Investors can invest in this one.
Technically an everbull stock retraced from 1000 to 832 levels and now blasting again looks all set to make new life time highs now. I am loooking at atleast 1500+ in this counter. You guyzz can buy at present levels for 1500+ in 3-6 months time period, though stoplosses if someone needs can keep below 750.
Sandesh Group is over 90 years old, the journey of Sandesh as a newspaper started in 1923, and today Sandesh is Gujarat’s largest and most influential media house, having a strong foothold across media landscape, such as :
Newspaper : Sandesh, which is published from Gujarat & Maharashtra is the largest media Gujarati company with 7 editions across Gujarat & Mumbai.
Television : Sandesh News (Award winning channel) is the region’s fastest growing 24x7 Gujarati News Channel, which reaches out to the most affluent and powerful gujarati audience.
Digital : Harnessing the potential as a future of communication, Sandesh is among first to launch a Gujarati news Smart Phones App in India to provide information and news in real times as it happens, and continues to have an expanding digital presence of over 5 million followers across all platforms.
Magazine & Weekly Publications : Through “Agro Sandesh” which provides relevant and enriching content to the farming, Dairy and co-operative sector, thus contributing the sector positively. “Stree” is popular women focused magazine which reaches out to women across all classes and addresses the issues related to them directly.
OOH (Out of Home) Media Solutions : “Spotlight” Brand Management focuses on every aspect of Brand Launching, upto Brand Building and enhancing the brand message by going beyond just grabbing eyeballs, but creating a lasting buzz around the brand. Company has its sites at all the major commercial areas in Ahmedabad. The company has procured various prestigious tenders like BRTS, Bus Shelters, AUDA & Ahmedabad Municipal Corporation.
Besides all of the above, the company also successfully operates its Real Estate (by the name of Applewoods Estates Pvt Ltd, by monetizing its land bank in Ahmedabad) and Finance business.
To cover the entire geography of Gujarat state, the company has its printing facilities at Baroda, Surat, Rajkot, Bhavnagar, Bhuj to cater Semi urban & rural areas. The regional offices are located at Mumbai, Delhi, Kolkata, Bangaluru, Chennai & Pune. Company enjoys a strong regional franchise, where it enjoys strong readership loyalty.
Future Outlook : According to FICCI-KPMG Report 2014, the print sector continued to buck the global slowdown trend and the sector grew at CAGR of 8.5% last year to touch Rs 243 Billion. The print industry is expected to grow at a CAGR of over 9% for 2013-18, as against estimated 8.7% expected in 2013. Vernacular market saw 10.8% growth in advertisement revenues, with English print reporting a sluggish growth of 5.2%. The increase in population, literacy rate and reach has led to increased circulation and readership of the newspapers in India. The company is steadily increasing its geographical presence, which helps improve its circulation and readership of its publications.
Sectors which spent heavily on print were FMCG (12.3%), Automobiles (11.7%), Education (9.7%), and Real Estate (8.7%). FMCG, Telecom and Automobile will continue to increase their ad-spent to push the sales due to slowdown, and majority will likely to come to Print media, due to its affordability, vast reach and direct impact.
According to FICCI-KPMG Report 2014, among various media, Print and Television continued to be the primary media platforms, claiming nearly 82% of total revenue and could continue to be the most dominant media for the next 5 years.
Valuation : This closely held DEBT FREE, Cash Rich company, with a tiny equity of Rs 7.61 Cr & Reserve of 445 Cr (Book Value Rs 651 per Share), where promoters hold 74.81% (Zero Pledge), HNIs hold 12.12% and rest (~13%) is held by Public, is trading at a PE of only 8.97 times TTM EPS of Rs 75 per Share (Average Industry PE stands at 18 times). At CMP of 900, the share is available at a Price to Book value of close to 1.5 (Industry Price to Book value 4.5 times). Market Cap to Sales Ratio is 1.4 (Industry Average is 4.5 times).
With blockbuster fundamentals, one thing is clear that the company is now on a high growth path and that will continue going forward, the company can easily post an EPS of Rs 110 for FY 16, which makes this stock one of the cheapest among media company at only 9 times PE at CMP of 900 Investors can invest in this one.
Technically an everbull stock retraced from 1000 to 832 levels and now blasting again looks all set to make new life time highs now. I am loooking at atleast 1500+ in this counter. You guyzz can buy at present levels for 1500+ in 3-6 months time period, though stoplosses if someone needs can keep below 750.
