(News)Paper Wealth
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Sector talk
Forum Discription: Discussion on sectors with regard to specific matters. We will be discussing the various sectors of the economy and how they would perform. Basically a top down approach.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1739
Printed Date: 06/Apr/2025 at 3:59pm
Topic: (News)Paper Wealth
Posted By: smartcat
Subject: (News)Paper Wealth
Date Posted: 18/Apr/2008 at 5:15pm
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Newspaper companies seem to be having a ball. Look at the profit margins of some of these companies.
FY10 Earnings estimates from Motilal Oswal -
Deccan Chronicle
Net Revenues: Rs. 1,100 crores
Net Profits: Rs. 440 crores
EPS: Rs. 17.8
P/E(x): 9
RoE: 24%
RoCE: 32%
HT Media:
Net Revenues: Rs. 1,666 crores
Net Profits: Rs. 182 crores
EPS: Rs. 7.8
P/E(x): 21
RoE: 15%
RoCE: 15%
Jagran Prakashan:
Net Revenues: Rs. 1,166 crores
Net Profits: Rs. 180 crores
EPS: Rs. 6
P/E(x): 15
RoE: 25%
RoCE: 34%
Some of the largest global companies in the newspaper field are -
Washington Post - $6.6 billion marketcap
Gannett - $6.3 billion
NY Times - $2.8 billion
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Replies:
Posted By: basant
Date Posted: 18/Apr/2008 at 5:33pm
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This 15 liner is more important then a 150 page report. Excellent comparision. The only problem is newspapers are not scalable and is dependent on a region or a city unlike something else which can be taken to different parts of the country.
Over a period of time such companies turn into cash cows rather then schreecing growth stocks.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: nitin_jagtap
Date Posted: 18/Apr/2008 at 6:11pm
Now which one of these will be the next washington post ...I am not thinking Buffet ..btw I wish Times of India was listed.
------------- Warm REgards Nitin Jagtap |
Posted By: shivkumar
Date Posted: 18/Apr/2008 at 6:37pm
And then there is ToI which is a newspaper and PE firm rolled into one.... |
Posted By: Vamsee
Date Posted: 18/Apr/2008 at 8:09pm
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One thing need to be kept in mind.
WB himself mentioned that news papers are not bullet proof franchises any more. The reason is that Internet + multiple TV news channels have reduced the USP of news papers. I have never purchased Washington post, but I can always read it online. Same for many indian news papers as well. Theoretically we can say that ad revenues online would compensate for the loss of revenues in print media, but still I have not seen any news paper site which is as popular as say...rediff. So they have not been able to transfer their advantages from print to the net. So these things need to be kept in mind before valuing news paper stocks. Indian news paper companies were very late in recognizing the strength of Internet. ------------- May you live in interesting times -- Ancient Chinese Curse |
Posted By: MuKeShHaRlAlKa
Date Posted: 23/Apr/2008 at 6:55pm
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Newspaper publishers r more of a commoditized biz. They hv to bear newsprint costs which accounts for nearly 50% of the total raw material costs. Recently newsprint prices have gone up more than 80% to $850 per tonne & is pegged to touch $1000 soon. So if advertising rates don't go up in the same manner the margins will be hit. Internet & Electronic media are eating up their businesses. Also there are many newspaper publishers. So there is intense competition.
I think it would be better to buy newsprint cos which serve to majority of the publishers. ------------- In Cricket & Stock Markets, everyone seems to be an expert but only a few really are. |
Posted By: shivkumar
Date Posted: 23/Apr/2008 at 10:39pm
I presume you buy your newspaper from the roadside vendor who pushes a copy in front of your nose without any affinity towards any particular publication. |
Posted By: MuKeShHaRlAlKa
Date Posted: 06/May/2008 at 6:06pm
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the following link puts forward the story :
http://www.businessworld.in/content/view/4540/4646#print%20 - link the article is little towards the bottom ------------- In Cricket & Stock Markets, everyone seems to be an expert but only a few really are. |
Posted By: shivkumar
Date Posted: 12/May/2008 at 12:00pm
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Posted By: shivkumar
Date Posted: 12/May/2008 at 12:03pm
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TOI publisher plans IPO The Rs 4,500-crore Bennett, Coleman & Co, India's largest print media company, is planning an initial public offer (IPO) of shares. Company insiders said Bennett is likely to be listed within a year, but added that no final decisions have been taken about the timing and size of the issue.... Rest of the story http://www.agencyfaqs.com/perl/media/index.html?sid=21099 - here. Expect plenty of air to escape from the media space shortly.... |
Posted By: psimajin
Date Posted: 12/May/2008 at 3:34pm
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Sometime wishes do come true. |
Posted By: nitin_jagtap
Date Posted: 12/May/2008 at 4:01pm
Yes indeed wishes can very much become true ...btw if TOI is listed imagine the no of cos the shareholders will have indirect stake in. It will be more of a quasi PE fund.
------------- Warm REgards Nitin Jagtap |