The company delivered good set of numbers - overall topline grew 24%YoY to Rs3.4bn where in the advertisement growth was at 29%YoY to Rs2.6bn. However excluding onetime net election billing of Rs70mn in Q3FY10, the ad revenue grew by 33% YoY. Circulation revenue grew 1.5%QoQ to Rs540mn in Q3FY11.

Festive season manifests in Q3FY11

Strong OPM despite rising business investments in new markets

Enhanced Profitability and high return ratios

OUTLOOK AND VALUATIONS

We believe DB Corp’s presence in high growth Hindi/regional print markets makes strong investment case for the company. We expect ad revenue to post 19% 2Yr CAGR (FY10-12E) and over all topline to grow at 17% 2Yr CAGR (FY10-12E). At the CMP, the stock trades at 17xFY12E EPS. We maintain ‘BUY’ recommendation on the stock with a target price of Rs315 (21xFY12E EPS).