Deccan Chronicle has target of Rs 142: Hitesh Agarwal

Deccan Chronicle Holdings has target of Rs 142, says Hitesh Agarwal, Head of Research, Angel Broking.

Agarwal told CNBC-TV18, "Deccan Chronicle Holdings is a leading publications company having strong presence in south India, primarily Andhra Pradesh, Chennai and Bangalore. The main reason why we have turned bullish on this stock is that the company is now shifted its focus from its other brands to its core business of print and IPL, the company has been gaining traction in the print business by entering into the Bangalore Market. Apart from that IPL has been doing pretty well for the company and we are pretty upbeat about the prospects of money making on the IPL property front and apart from that, the newsprint prices have collapsed in the last one year by almost 35-40%, so we spent almost a 900 basis point improvement margins for this company. So in that sense we expect about a 45% CAGR for the next couple of years, so at around 10x FY11 earnings the stock is a very good buy at these levels. Our price target on this is around Rs 142.”