Hindustan Media Ventures - intraday share tips

Hindustan Media Ventures (HMVL) is one of the leading print media companies in India in terms of readership. Its newspaper, Hindustan has been one of India's eminent Hindi newspaper dailies for over 70 years and has an readership of around 12 million, making it the second largest daily newspaper in India.

• HMVL is part of the HT Media group, publishers of the Hindustan Times. HMVL is able to leverage the existing relationship of HT Media and its existing infrastructure and capacities to expand and grow business.
• There is a significant mismatch between the readership numbers and advertising revenues between English and Hindi newspapers as the advertising rates in Hindi dailies are much lower than in English dailies. Though the reach of Hindi print is higher, it has not been able to monetize that reach. The premium of English over Hindi is estimated to be 6.4 times. With growth picking up outside the metros, as can be seen by the growth in Tier II and Tier III cities, the rates are expected to move in favour of Hindi and regional print.
• Increasing literacy and income levels in non-urban areas will help non-English media to grow at a faster pace. Moreover, cost of newsprint and production of Non-English print is much lower and scope for increasing the advertisement rates is much higher than English print media.
• For the quarter ended September 2011, HMVL reported a 17 per cent rise in sales to Rs. 303.27 crore and a 40 per cent rise in the net profit Rs. 40.80 crore. HMVL has strong balance sheet (cash of Rs. 186.50 crore) which will be used for acquisition and expansion. As per recent Q2 2011 IRS results, 'Hindustan' consolidated its position as the second largest newspaper in the country by increasing the lead over competition, based on Total Readership. 
• The company maintained leadership in Bihar, with a readership share of 74 per cent. In Jharkhand it continued to be leader with a readership of 1.77 million, a readership of 56 per cent. The company is fastest growing daily in Uttar Pradesh & Uttarakhand - registering growth in last 10 rounds in succession. It is the second largest in New Delhi NCR (readership of 1.32 million).   
• In FY 2012 we expect HMVL to register EPS of Rs. 10.0. The share trades at Rs. 133. P/E works out to 13.4.

Year	Net	Net	EPS	Div	BV	RONM
	sales	profit	(Rs)	(%)	(Rs)	(%)
2009-10	438.85	45.21	6.2	0.00	13.19	34.33
2010-11	520.35	53.60	7.3	10.00	51.64	23.59
2011-12 (E)	625.81	73.08	10.0	12.00	60.44	23.82

Stock Snapshot

BSE ticker code:     533217
NSE ticker code:    HMVL   
Major activity:    Media - Print/Television/Radio
Chairman    Shobhana Bhartia
Equity capital:    Rs. 73.39 crore; FV Rs. 10
52 week high/low:    Rs. 194/Rs. 125
CMP:    Rs. 133
Market Capitalisation:    Rs. 976.10 crore
Recommendation    Buy

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