Pressman Advertising Ltd
(BSE Code: 509077) (CMP: Rs.63.90) (FV: Rs.2)
We had recommended this stock earlier at Rs.35.65 on 30 November 2015, where-after it zoomed to Rs.67.35. We recommend this stock once again on account of its excellent Q2FY18 results.
Incorporated in 1983, advertising agency Pressman Advertising Ltd (PAL) specializes in media planning and buying, design, digital and public relations. It offers corporate, brand/product, financial and government advertising services. PAL also provides public relations consultancy services such as corporate communications, marketing communications, financial communications, media relations, analyst relations, crisis communications and digital communications.
PAL has an equity capital of just Rs.4.70 crore supported by reserves of Rs.25.93 crore. It is a debt-free company. The promoters hold 47.19% of the equity capital, which leaves 52.81% stake with the investing public.
For Q1FY18, PAT soared 54% to Rs.1.88 crore from Rs.1.22 crore in Q1FY17 on higher income of Rs.12.07 crore fetching an EPS of Re.0.8. During H1FY18, PAT jumped 43% to Rs.4.09 crore from Rs.2.86 crore in H1FY17 on marginally lower income of Rs.22.35 crore fetching an EPS of Rs.1.74.
PAL is a regular dividend-paying company and it paid 65% dividend for FY17. PAT has grown at 19.3% CAGR over the last three years. Currently, the stock trades at a P/E of 18.85x. It PEG ratio is 1x, which is comfortable in this bull market. Sinclairs Hotels Ltd is a group company of PAL, which currently trades at around Rs.366.9. Based on its performance parameters, the PAL stock looks quite attractive at the current level. Investors can buy this stock with a stop loss of Rs.57. On the upper side, it could zoom to Rs.85-90 levels in the medium-