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DB Corp Ltd. Stock Analysis

Small Cap
Evaluated by 2941 users | BSE: 533151 | NSE: DBCORP |
Printing And Publishing
The Company was originally incorporated as ‘Multi-Tech Energy Limited’ under the provisions of the Companies Act, 1956. A certificate of incorporation was issued on October 27, 1995 by the Registrar of Companies (“RoC”) Gwalior, Madhya Pradesh. The certificate of...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
DB Corp Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 27.2%20.11%20.04%25.99%24.31%20.7%23.63%18.04%14.77%16.13%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,2601,4521,5921,8602,0102,0522,2582,3112,4632,224
Y-o-Y Gr. Rt.-15.2%9.7%16.8%8.1%2.1%10.1%2.4%6.6%-9.7%
Adjusted EPS (Rs.) 14.2811.4912.3217.3617.716.120.3417.6315.9216.16
Y-o-Y Gr. Rt.--19.5%7.2%40.9%2%-9%26.3%-13.3%-9.7%1.5%
Book Value per Share (Rs.) 44.5549.8855.561.9869.7975.6886.19104.3410495.56
Adjusted Net Profit 262211226318325296374325278283
Net Op. Cash Flow (Rs. Cr.) 264231241259425341360364235363
Debt to Cash Flow from Ops 0.790.910.660.60.30.40.220.120.220.46
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
DB Corp Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6.5%2.1%-0.5%-9.7%
Adjusted EPS 1.4%-1.8%-7.4%1.5%
Book Value per Share 8.96.53.5-8.1
Share Price -10.1% -24.7% -41% -44.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 35.4323.9823.129.2726.722.032518.4214.8316.13
Operating Profit Margin (%) 32.0724.1824.4727.8128.5926.3328.424.4320.4121.14
Net Profit Margin (%) 20.7914.5214.1917.1216.1714.4216.5714.0411.3112.72
Debt to Equity 0.250.230.160.140.10.10.050.020.030.1
Working Capital Days 185203168128142152241355377440
Cash Conversion Cycle 40536062586154536483
Entity Percentage Holding
Promoters 71.66%
Institutions 20.53%
Non-Institutions 7.81%
Pledged *45.6851.9632.5641.0939.8830.5238.4833.8240.4046.02
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of DB Corp and arrived at the following conclusion:

Past 10 year's financial track record indicates that DB Corp is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of DB Corp's performance infers:

DB Corp earnings have declined by -1.8%, whereas share price has depreciated -24.7% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of DB Corp share prices over the last 10 years. Here is what we found out:

DB Corp share price has depreciated -12% annually over the past ten years.

The Company was originally incorporated as ‘Multi-Tech Energy Limited’ under the provisions of the Companies Act, 1956. A certificate of incorporation was issued on October 27, 1995 by the Registrar of Companies (“RoC”) Gwalior, Madhya Pradesh. The certificate of commencement of business was issued on June 26, 1998. Subsequently, the name of the Company was changed to ‘D.B. Corp Limited’ pursuant to shareholders resolution dated November 28, 2005. A

The Company was originally incorporated as ‘Multi-Tech Energy Limited’ under the provisions of the Companies Act, 1956. A certificate of incorporation was issued on October 27, 1995 by the Registrar of Companies (“RoC”) Gwalior, Madhya Pradesh. The certificate of commencement of business was issued on June 26, 1998. Subsequently, the name of the Company was changed to ‘D.B. Corp Limited’ pursuant to shareholders resolution dated November 28, 2005. A fresh certificate of incorporation consequent to the change of name was issued on December 1, 2005 by the RoC. On December 22, 2006, the High Court of Gujarat approved the scheme of arrangement following which the publication business and the windfarm business of Writers and Publishers Limited was transferred to the Company.

It is one of the leading print media companies in India, publishing 7 newspapers, 48 newspaper editions and 128 sub-editions in three languages (Hindi, Gujarati and English) in 11 states in India. Its flagship newspapers, Dainik Bhaskar, Divya Bhaskar and Saurashtra Samachar, have a combined average daily readership of 15.5 million readers, making it one of the most widely read newspaper groups in India. Dainik Bhaskar, with a total average daily readership of 11.7 million readers, is a widely read newspaper in Madhya Pradesh, Chattisgarh, Rajasthan, Haryana, Punjab, and Chandigarh. Divya Bhaskar is the number one Gujarati daily newspaper in terms of circulation in Gujarat.

Its other newspapers are Business Bhaskar, DB Gold and DB Star and, on a franchisee basis, DNA (in Gujarat and Rajasthan). It is one of the fastest growing major newspaper groups in India with a growth in readership of more than 5.0% from 2003 to 2009 (with a combined readership of 15.5 million readers). In addition to newspapers, it publishes 5 periodicals, namely, Aha Zindagi, a monthly magazine published in Hindi and Gujarati, Bal Bhaskar, a Hindi magazine for children, Young Bhaskar, a children’s magazine in English and Lakshya, a career magazine in Hindi. The ownership of newspaper “Dainik Bhaskar” vests with persons other than the promoter group.

The company through its subsidiary, Synergy Media Entertainment (SMEL), has a significant presence in the radio business under the brand name MY FM. Through SMEL, it operates 17 FM radio stations. Through its subsidiary, I Media Corp Limited ('IMCL'), it also operates internet portals and short messaging service (SMS) portals.It has one of the largest newspaper production and distribution platforms in India. It produces its print products at 31 facilities spread across 31 cities, with a total installed capacity of approximately 1.94 million copies per hour. It distributes its newspapers through a multi-tiered distribution and marketing network consisting of city distribution centers, agents, sub-agents, vendors and sub-vendors.

The company sells advertisement space in its publications through advertising agencies as well as directly to underlying customers. It has one of the largest pools of advertisers in India. As of September 2009, it had relationships with 1,552 accredited agencies and 2,745 non-accredited agencies and served approximately 308,134 advertisers in that fiscal year. It strives to maintain strong journalistic integrity and high editorial standards through the editorial and reporting staff, which consisted of 1355 persons as of September 30, 2009 and a sizeable team of freelance journalists.

In May, 2010, the company has approved the proposal to demerge the radio business from its subsidiary, Synergy Media Entertainment into itself.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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