Jagran Prakashan (JAGRAN)
Asset PlayFairStock Score: 45/100 — MIXED
Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 1/1
Key Financials
| Current Price | ₹62.46 |
| Market Cap | ₹1,359.47 Cr |
| P/E Ratio | 6.9 |
| ROCE | 5.95% |
| ROE | 15.49% |
| Dividend Yield | 11.21% |
| Profit Growth | -12.6% |
| Debt/Equity | 0.05 |
| Sales Growth | 15.4% |
| Promoter Holding | 69% |
| 52-Week Range | ₹59.5 — ₹79.68 |
| Sector | Media |
| Book Value | ₹92.58 |
Strengths
- Promoter holding of 69% aligns management with minority shareholders.
- Trades below book value: P/B of 0.92 against book value of ₹72.72.
- Low debt/equity of 0.10 provides balance sheet stability.
- P/E of 8.40 and dividend yield of 9.47% are optically attractive.
- ROE of 15.49% shows existing equity returns are not negligible.
Concerns
- Sales are declining at 7.70% and profit is down 13.53%, indicating a shrinking business.
- Piotroski F-Score of 3/9 points to weak financial health and operating performance.
- ROCE of 5.95% is low, questioning the real return on invested capital.
- High dividend yield of 9.47% may be unsustainable if earnings continue to slide.
AI Analysis
At first glance, Jagran Prakashan looks like value: a price of ₹66.55 against book value of ₹72.72, a P/E of 8.40, and a dividend yield of 9.47%. Promoters own 69%, so interests are reasonably aligned. But I have learned that a low price can hide a deteriorating business, not a bargain. Print media is fighting structural headwinds. The numbers confirm this: sales have fallen 7.70%, profit is down 13.53%, and the latest quarter’s ₹477 Cr revenue and ₹55 Cr profit show pressure. The Piotroski F-Score of 3/9 is a red flag; it indicates weak operating efficiency and financial condition, despite a clean balance sheet with D/E of only 0.10. ROE of 15.49% looks respectable, but ROCE of just 5.95% tells me the underlying capital returns are not as strong as the equity number suggests. So where is the margin of safety? At a P/B of 0.92, I am paying less than book. But book value is only useful if the assets truly earn a good return. A 9.47% dividend yield is attractive, but when earnings are shrinking, dividends can be cut. I do not need to own every cheap stock. I need to be confident that earnings will not keep shrinking. That confidence is missing. This is not a fast grower or a stalwart; at best it is an asset play, and at worst a value trap. I will wait until revenue stabilises, the F-Score improves, and management proves the dividend is covered by cash flow.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer