Press­man Ad­ver­tis­ing Ltd

Money Times - - Techno Funda - By Nayan Pa­tel

(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-

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