JAGP’s 1QFY15 EBITDA grew 5% YoY and 36% QoQ to INR1.07b (v/s est of INR1.05b), supported by opex control even as revenue growth was muted. PAT (adjusted for exceptional items) declined 5% YoY but grew 81% QoQ to INR551m.

1. 31 July 2014
1QFY15 Results Update | Sector: Media
Jagran Prakashan
Shobhit Khare (Shobhit.Khare@MotilalOswal.com); +91 22 3982 5428
BSE SENSEX S&P CNX
CMP: INR119 TP: INR150 Buy25,895 7,721
Bloomberg JAGP IN
Equity Shares (m) 326.9
M.Cap. (INR b) / (USD b) 39.0/0.6
52-Week Range (INR) 140/78
1, 6, 12 Rel. Per (%) -10/8/-2
Financials & Valuation (INR Million)
Y/E MAR 2015E 2016E 2017E
Net Sales 18.5 20.6 22.5
EBITDA 4.4 5.1 5.6
A. Net Profit 2.3 2.9 3.4
A. EPS (INR) 7.5 9.3 10.9
A. EPSGr. (%) 16.5 24.2 17.2
BV/Sh (INR) 33.7 38.3 44.5
RoE (%) 23.1 25.8 26.3
RoCE (%) 16.3 18.5 19.5
D.payout(%) 62.6 50.4 43.0
Valuation
P/E (x) 15.9 12.8 10.9
P/BV (x) 3.5 3.1 2.7
EV/EBITDA(x) 8.8 7.4 6.4
Div. Yield (%) 3.4 3.4 3.4
 JAGP’s 1QFY15 EBITDA grew 5% YoY and 36% QoQ to INR1.07b (v/s est of
INR1.05b), supported by opex control even as revenue growth was muted.
 PAT (adjusted for exceptional items) declined 5% YoY but grew 81% QoQ to
INR551m. PAT was dragged down by additional ~INR50m quarterly depreciation
charge in line with accounting requirements as per the new company act.
However FY16 depreciation would likely decline YoY as the company follows
WDV.
 Ad revenue increased 7% YoY to INR3.09b (v/s est of INR3.16b), impacted by lack
of government advertising due to ‘model code of conduct’ and certain client
specific issues in the education category. Circulation revenue grew 11% YoY to
INR957m (v/s estimate of INR953m).
 Consolidated revenue grew 7% YoY to INR4.4b (v/s estimate of INR4.5b).
 Consolidated EBITDA margin declined 40bp YoY to 24.3% led by increase in RM
costs (up 270bp YoY). RM cost increased ~15% YoY led by ~12% newsprint price
increase. We expect newsprint prices to correct going forward.
 Other exp. declined 4% YoY and 16% QoQ on overall opex control, lower direct
expenses in outdoor/event/digital and lower write-off/provision for bad debts
Valuation and view
 Jagran’s 1QFY15 performance was broadly in line. While growth is likely to
remain muted in 1HFY15, we expect strong earnings rebound led by acceleration
in ad growth and decline in newsprint prices vs current levels.
 We are downgrading FY15 PAT by ~5% to factor-in ~1% EBITDA downgrade and
higher depreciation rate. Our FY16 PAT is largely unchanged. We expect
proforma EPS CAGR of 20% over FY14-16E driven by 11% ad revenue CAGR and
EBITDA margin expansion of ~210 bps.
 The stock trades at P/E of 15.9x FY15E and 12.8x FY16E. Maintain Buy with a
price target of INR150 based on 16x FY16 EPS.
Investors are advised to refer through disclosures made at the end of the Research Report.

2. 31 July 2014 2
Jagran Prakashan
Standalone ad/circulation revenue (including Nai Duniya from 4QFY13)
Source: Company, MOSL
Standalone YoY ad growth (%)
Source: Company, MOSL
Standalone EBITDA (incl Nai Duniya from 4QFY13)
Source: Company, MOSL
RM/Sales (Consolidated from 1QFY14)
Source: Company, MOSL
1,898
1,935
1,945
1,887
2,043
2,119
2,235
2,103
2,207
2,196
2,393
2,276
2,685
2,630
3,000
2,647
2,880
553
548
570
559
582
612
623
628
641
666
699
761
795
826
861
860
896
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
Advertising revenue (INR m) Circulation revenue (INR m)
18
13
31
20
8 10
15
11
8
4
7
0
12 11
15 16
7
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
705
832
653
633
902
908
897
714
820
791
851
659
788
782
911
540
1013
911
1090
797
1059
30
34
29 27
33 33 31
25 27 26 26
21
25 24 26
16
26
24 25
20
26
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
EBITDA (INR m) EBITDA margin (%)
701
684
674
678
756
801
863
911
989
1,075
1,135
1,082
1,135
1,109
1,179
1,240
1,416
1,473
1,627
1,571
1,627
30 28 30 29 28 29 30 32 32 35 35 35 36 34 34 36 34 36 36 37 37
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
RM cost (INR m) RM cost (% of rev)

3. 31 July 2014 3
Jagran Prakashan
Consolidated quarterly performance
1QFY14 4QFY14 1QFY15 YoY (%) QoQ (%) 1QFY15E v/s est (%)
Advertising revenue 2,898 2,917 3,089 6.6 5.9 3,158 -2.2
Circulation revenue 863 887 957 10.8 7.8 953 0.3
Others 370 403 357 -3.3 -11.4 384 -7.0
Revenue 4,131 4,207 4,403 6.6 4.6 4,496 -2.1
Total operating cost 3,111 3,418 3,333 7.1 -2.5 3,446 -3.3
EBITDA 1,019 790 1,070 5.0 35.6 1,051 1.9
EBITDA margin (%) 24.7 18.8 24.3 -37bps 554bps 23.4 94bps
Depreciation 181 220 238 31.6 8.1 222 7.1
EBIT 838 569 832 -0.7 46.2 829 0.5
Interest 71 101 84 17.5 -17.1 85 -1.5
Other Income incl sale of property -12 458 69 -687.5 -84.9 100 -30.8
Exceptional items (title amortization) 101
PBT 755 826 818 8.3 -1.0 844 -3.0
Tax 177 274 267 50.4 NA 261 NA
Tax rate (%) 23 33 33 915bps -55bps 31 165bps
Reported PAT 578 552 551 -4.7 -0.2 582 -5.4
Exceptional/prior period items 248 NA NA
Adjusted PAT 578 304 551 -4.7 81.2 582 -5.4
Operating expenses (INR m)
Raw material 1,416 1,571 1,627 14.9 3.6 1,626 0.1
Employee 600 585 648 8.0 10.7 648 0.0
Others 1,095 1,262 1,058 -3.5 -16.2 1,172 -9.8
Total 3,111 3,418 3,333 7.1 -2.5 3,446 -3.3
Opex (% of revenue)
Raw material 34.3 37.3 37.0 268bps -37bps
Employee 14.5 13.9 14.7 19bps 81bps
Others 26.5 30.0 24.0 -250bps -598bps
Source: Company, MOSL
Summary of estimate change (INR b)
FY15E FY16E
Revenue
Old 18.72 20.71
New 18.52 20.61
Change (%) -1.1 -0.5
EBITDA
Old 4.43 5.10
New 4.38 5.06
Change (%) -1.0 -0.8
EBITDA margin (%)
Old 23.7 24.6
New 23.7 24.5
Change (bp) 1 -8
Adj. PAT
Old 2.45 2.93
New 2.33 2.89
Change (%) -5.0 -1.3
Adj. EPS (INR)
Old 7.9 9.4
New 7.5 9.3
Change (%) -5.0 -1.3
Source: Company, MOSL

4. 31 July 2014 4
Jagran Prakashan
Key assumptions & other data
FY10 FY11 FY12 FY13 FY14 FY15E FY16E FY17E
Group ad revenue (INR b) 6.4 8.5 9.4 10.5 11.9 13.0 14.5 15.8
YoY (%) 16 34 10 12 13 9 12 9
-Standalone (exc. Nai Duniya) 6.4 7.7 8.5 8.9 10.0 11.0 12.4 13.5
YoY (%) 16 20 11 4 13 10 12 9
-Mid-Day + Inquilab 0.8 0.9 0.9 0.9 0.9 0.9 1.0 1.0
YoY (%) 4 2 -2 5 3 3 3
-Nai Duniya 0.8 0.9 1.0 1.2 1.3
YoY (%) 13 16 11 13 13
Group circulation revenue (INR b) 2.1 2.4 2.7 3.2 3.6 4.0 4.5 5.0
YoY (%) 9 12 11 20 12 10 13 11
-Standalone (exc. Nai Duniya) 2.1 2.2 2.4 2.7 3.1 3.4 3.9 4.3
YoY (%) 10 4 10 11 13 11 13 12
-Mid-Day + Inquilab 0.1 0.2 0.2 0.2 0.2 0.2 0.3 0.3
YoY (%) 4 28 9 5 9 9 8
-Nai Duniya 0.3 0.3 0.3 0.3 0.3
YoY (%) 25 10 10 10 0
Dainik Jagran av circulation/day (m) 2.7 3.0 3.2 3.5 3.6 3.9 4.1 4.3
YoY (%) -2 11 8 7 4 7 7 5
Newsprint price (USD/ton) 505 573 652 610 586 592 597 603
YoY (%) -20 13 14 -6 -4 1 1 1
RM cost/Revenue (%) 29 29 34 32 32 32 32 32
Revenue mix (%)
Ad revenue 68 70 69 69 70 70 70 70
Circulation revenue 23 20 20 21 21 21 22 22
Other 10 11 11 10 9 9 8 8
Source: Company, MOSL

5. 31 July 2014 5
Jagran Prakashan
Jagran Prakashan: an investment profile
Company description
Jagran Prakashan Ltd (JPL) is a leading media and
communications group with its main interests across
Newspaper, Outdoor, Internet, Magazine, Event
Management and Short Code Sevice media, spanning
across 11 states. JPL is a leading newspaper publisher.
It's flagship brand Dainik Jagran has been the largest
read and circulated newspaper in India. JPL has 3
newspaper titles - Dainik Jagran, I next and City Plus.
Dainik Jagran is a Hindi newspaper printed out of 31
locations across 11 states, I next is a bilingual compact
morning newspaper targeted at 18-35 yrs, SEC AB1 in
key metros, while City Plus is a weekly English tabloid
circulated in Gurgaon, Faridabad, Ghaziabad, Noida and
Delhi.
Key investment argument
 Strong presence in tier II/III towns across the Hindi
speaking belt
 Footprint expansion led by Mid-Day and 'Nai
Duniya' acquisitions
 High dividend pay-out
Key investment risks
 High exposure to the UP print market
 Increased competition in UP and Bihar markets
Recent developments
 Jagran’s board approved a final dividend of
INR3/sh.
Valuation and view
 We are downgrading FY15 PAT by ~5% to factor-in
~1% EBITDA downgrade and higher depreciation
rate. Our FY16 PAT is largely unchanged. We
expect proforma EPS CAGR of 20% over FY14-16E
driven by 11% ad revenue CAGR and EBITDA
margin expansion of ~210 bps.
 The stock trades at P/E of 15.9x FY15E and 12.8x
FY16E. Maintain Buy with a price target of INR150
based on 16x FY16 EPS.
Comparative valuations
Jagran HT Media DB Corp
P/E (x) FY15E 15.9 12.7 17.0
FY16E 12.8 11.5 14.3
EV/EBITDA (x) FY15E 8.8 5.0 9.6
FY16E 7.4 3.7 8.1
Div. Yield (%) FY15E 3.4 0.3 2.6
FY16E 3.4 0.4 3.1
P/BV (x) FY15E 3.5 1.2 4.6
FY16E 3.1 1.0 4.0
EPS: MOSL forecast v/s consensus (INR)
MOSL Consensus Variation
Forecast Forecast (%)
FY15 7.5 8.3 -9.2
FY16 9.3 9.7 -4.0
Target price and recommendation
Current Target Upside Reco.
Price (INR) Price (INR) (%)
119 150 26 Buy
Shareholding pattern (%)
Mar-14 Dec-13 Mar-13
Promoter 62.6 61.6 61.6
DII 9.1 5.3 13.0
FII 14.0 7.3 12.6
Others 14.4 25.7 12.8
Notes: FII includes depository receipts
Stock performance (1-year)

6. 31 July 2014 6
Jagran Prakashan
Financials and valuation

7. 31 July 2014 7
Jagran Prakashan
N O T E S

8. 31 July 2014 8
Jagran Prakashan
Disclosures
This research report has been prepared by MOSt to provide information about the company(ies) and sector(s), if any, covered in the report and may be distributed by it and/or its affiliated company(ies). This
report is for personal information of the select recipient and does not construe to be any investment, legal or taxation advice to you. This research report does not constitute an offer, invitation or inducement to
invest in securities or other investments and Motilal Oswal Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not for public distribution and has been
furnished to you solely for your general information and should not be reproduced or redistributed to any other person in any form. This report does not constitute a personal recommendation or take into
account the particular investment objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, investors should consider whether it is suitable
for their particular circumstances and, if necessary, seek professional advice. The price and value of the investments referred to in this material and the income from them may go down as well as up, and
investors may realize losses on any investments. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur.
MOSt and its affiliates are a full-service, integrated investment banking, investment management, brokerage and financing group. We and our affiliates have investment banking and other business
relationships with a significant percentage of the companies covered by our Research Department Our research professionals provide important input into our investment banking and other business selection
processes. Investors should assume that MOSt and/or its affiliates are seeking or will seek investment banking or other business from the company or companies that are the subject of this material and that
the research professionals who were involved in preparing this material may participate in the solicitation of such business. The research professionals responsible for the preparation of this document may
interact with trading desk personnel, sales personnel and other parties for the purpose of gathering, applying and interpreting market information. Our research professionals are paid in part based on the
profitability of MOSt which include earnings from investment banking and other business. MOSt generally prohibits its analysts, persons reporting to analysts, and members of their households from
maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. Additionally, MOSt generally prohibits its analysts and persons reporting to analysts from serving as an
officer, director, or advisory board member of any companies that the analysts cover. Our salespeople, traders, and other professionals or affiliates may provide oral or written market commentary or trading
strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make investment decisions that are inconsistent with
the recommendations expressed herein. In reviewing these materials, you should be aware that any or all o the foregoing, among other things, may give rise to real or potential conflicts of interest . MOSt and
its affiliated company(ies), their directors and employees may; (a) from time to time, have a long or short position in, and buy or sell the securities of the company(ies) mentioned herein or (b) be engaged in
any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or
lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.
Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt MOSt or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSt or any of its affiliates or employees responsible for any such misuse and further agrees to
hold MOSt or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The
information contained herein is based on publicly available data or other sources believed to be reliable. Any statements contained in this report attributed to a third party represent MOSt’s interpretation of the
data, information and/or opinions provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. This Report is not
intended to be a complete statement or summary of the securities, markets or developments referred to in the document. While we would endeavor to update the information herein on reasonable basis, MOSt
and/or its affiliates are under no obligation to update the information. Also there may be regulatory, compliance, or other reasons that may prevent MOSt and/or its affiliates from doing so. MOSt or any of its
affiliates or employees shall not be in any way responsible and liable for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. MOSt or any of
its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of
merchantability, fitness for a particular purpose, and non-infringement. The recipients of this report should rely on their own investigations.
Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision based on this report or for any necessary explanation of its
contents.
MOSt and/or its affiliates and/or employees may have interests/positions, financial or otherwise in the securities mentioned in this report. To enhance transparency, MOSt has incorporated a Disclosure of
Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report.
Disclosure of Interest Statement JAGRAN PRAKASHAN LTD
 Analyst ownership of the stock No
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or
will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The research analysts, strategists, or research associates principally responsible
for preparation of MOSt research receive compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to
law, regulation or which would subject MOSt & its group companies to registration or licensing requirements within such jurisdictions.
For U.K.
This report is intended for distribution only to persons having professional experience in matters relating to investments as described in Article 19 of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 (referred to as "investment professionals"). This document must not be acted on or relied on by persons who are not investment professionals. Any investment or investment activity to
which this document relates is only available to investment professionals and will be engaged in only with such persons.
For U.S.
Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States.
In addition MOSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state
laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOSL, including the products and services described herein
are not available to or intended for U.S. persons.
This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional
investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major
institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as
amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOSL has
entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be
executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer,
MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research
analyst account.
For Singapore
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors
Regulations and is a subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore
to accredited investors, as defined in the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time.
In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Anosh Koppikar Kadambari Balachandran
Email:anosh.Koppikar@motilaloswal.com Email : kadambari.balachandran@motilaloswal.com
Contact(+65)68189232 Contact: (+65) 68189233 / 65249115
Office Address:21 (Suite 31),16 Collyer Quay,Singapore 04931
Motilal Oswal Securities Ltd
Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025
Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com