Jan/15 Feb/15 Mar/15 Apr/15 May/15 Jun/15 Jul/15 Aug/15 Sep/15 Oct/15 Nov/15 Dec/15 CMP: 27.80 January 20, 2016 Stock Details BSE code 534623 BSE ID JUPITERIN Face value ( ) 10 No of shares (m) 10 52 week H/L 38.10/18.75 Market cap ( m) 279 30 days avg. daily vol (No) 8,046 Free float ( m) 84 Dividend yield FY15 (%) 0.4% Stock performance (%) 1M 3M 12M Absolute -12.9% -21.7% 36.3% Rel. to Sensex 6.0% 9.5% 53.3% Shareholding Pattern* (%) Promoters FIIs DIIs Public 66.15% % % 33.85% *As of September 2015 Relative Chart Company Overview Jupiter Infomedia is Indian based web infomedia company with online publication on Business, Encyclopedia, Yellow pages, News & Events related to India. The company is involved in developing the India s largest online library, which will provide fast and accurate information to its visitors about India. Industry Overview The online web publication sector is growing with a robust growth rate since 2010. The main reason behind growth of the sector is increase rapid technology adaption like smartphone, tablet and other portable screen devices. The growth in the web publication sector is also edged by increase in the use of internet and introduction of technologies like 3G and 4G. Financial Performance Jupiter reported a revenue of 4.1 million for FY 15, down 26.0% YoY from 5.5 million in FY14. The company reported a net profit of 0.6 million for the fiscal year 2015. For the second quarter of FY 16 company reported a top line of 0.4 million and bottom line was at 0.1 million. 40 Jupiter Infomedia ltd Sensex 30,000 Table1: Key Financials 35 30 25 29,000 28,000 27,000 (Y/e March) Q2 15 Q2 16 Sales ( m) 6.1 5.5 4.1 NA 0.4 20 15 10 5 26,000 25,000 24,000 23,000 YoY Growth (%) -4.4% -10.5% -26.0% NA NA EBITDA ( m) 1.9 3.0 2.6 NA 0.5 EBITDA Margin 31.3% 54.9% 63.1% NA 102.3% 0 22,000 PAT ( m) 0.9 0.6 0.6 NA 0.1 EPS ( ) 0.3 0.2 0.1 NA Source: Bloomberg YoY Growth (%) 358.7% -33.0% -0.6% NA NA Source: Company, Karvy Investment Advisory 1
Background and Business Description Jupiter Infomedia is Indian based web infomedia Company with online publication on Business, Encyclopedia, Yellow pages, News & Events related to India. The company is involved in developing the India s largest online library, which will provide fast and accurate information to its visitors about India. At present company have three publications: JimTrade.com Online business directory of India IndiaNetzone.com Free encyclopedia directory of India JimYellowpages.com Online Yellow-pages of India Key Strengths High growth in internet users. Risks & Concerns Being the company that is in technology segment, the company faces the risk of obsolescence on account of innovation or new product development Competition Board of Directors Table 2: Composition of Board Name Mr. Umesh Modi Mrs. Manisha Modi Mr. Jay Desai Mr. Digesh Rambhia Mr. Akshay Desai Source: Company Relation with Company Chairman and managing Director Chief Financial Officer Director Director Director 2
Industry Overview The online web publication sector is growing with a robust growth rate since 2010. The main reason behind growth of the sector is increase rapid technology adaption like smartphone, tablet and other portable screen devices. The growth in the web publication sector is also edged by increase in the use of internet and introduction of technologies like 3G and 4G. As the sector is continuously growing with a robust growth rate, more and more investors are showing interest in the sector. India s overall retail opportunity is substantial, and coupled with a demographic dividend (young population, rising standards of living and upwardly mobile middle class) and rising internet penetration, strong growth in Web Publication is expected. Such early stage funding will help companies develop a strong foundation to start from. With such strong market prospects and an equally upbeat investor community, many more Web Publication companies from India entering the coveted club. Peer group analysis Company CMP ( ) Mcap ( m) Rev ( m) OPM (%) EPS ( ) PE (x) Jupiter Infomedia Ltd. 27.8 278.6 4.1 87.4% 0.13 214x i Street Network Ltd. 21.6 445.5 9.5 NM (1.6) NM Info Edge (India) Ltd. 80 96,572.9 6,115.8 47.1% 16.8 48x Source: BSE 3
Financial Analysis Jupiter reported a revenue of 4.1 million for FY 15, down 26.0% YoY from 5.5 million in FY14. Net profit for the company was at 0.614 million in FY15, down 0.6% YoY from 0.618 million in FY14. EPS was at 0.1 in FY15 compare to 0.2 in FY14. Return on equity was flat YoY at 1.0% in FY 15. Interest coverage ratio was at comfortable level in FY15 with ratio at 3.5x. Year end March Income statement ( million) Revenue 6.1 5.5 4.1 % growth -4.4% -10.5% -26.0% EBITDA 1.9 3.0 2.6 % EBITDA margin 31% 55% 63% Depreciation and Amortization 0.2 1.1 1.8 EBIT 1.7 1.9 0.8 Interest 0.1 0.2 0.2 PBT 0.8 0.5 0.9 Tax (0.1) (0.1) 0.3 Net profit 0.9 0.6 0.6 % growth net profit 358.7% -33.0% -0.6% Balance sheet ( million) Shareholder fund 61.5 61.7 106.7 Non Current liabilities - - - Current liabilities 1.3 5.9 3.9 Non Current assets 58.5 59.4 107.2 Current assets 3.9 7.7 2.7 Cash & cash equivalent 0.3 0.4 0.6 Cash flow statement Cash flow operations -0.8-2.5 1.2 Cash flow from investing (38.0) (1.3) (42.0) Cash flow from financing 38.1 3.8 40.9 Per share data EPS ( ) 0.33 0.2 0.1 CEPS ( ) (0.1) (0.2) 0.1 DPS ( ) NA NA NA BVPS ( ) 6.1 6.2 10.6 Financial Ratios % ROE 2% 1% 1% ROCE 2.8% 3.1% 0.8% Debt/Equity Interest coverage ratio 16.0 8.1 3.5 Current ratio 2.9 1.3 0.7 Cash ratio 0.2 0.1 0.2 Source: Company, Karvy Investment Advisory 4
Financial Snapshot Revenue growth (%) EBITDA margin (%) 7.0 6.0 5.0 4.0 3.0 2.0 1.0 % -5.0% -1% -15.0% -2% -25.0% -3% 4.0 3.0 2.0 1.0 8% 6% 4% 2% % Revenue ( m) % growth EBITDA ( m) % EBITDA margin Net Profit Margin (%) BVPS & EPS 1.0 0.8 0.6 0.4 0.2 2% 15.0% 1% 5.0% % Net Profit ( m) % net profit margin 12.0 1 8.0 6.0 4.0 2.0 Book value per share ( ) EPS diluted ( ) 0.4 0.3 0.2 0.1 Liquidity ratios Profitability ratios 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 0.30 0.25 0.20 0.15 0.10 5 0 4.0% 3.0% 2.0% 1.0% % Current ratio Cash ratio ROE ROCE Source: Company data and Karvy Investment Advisory 5
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