Madhya Pradesh Today Media Ltd

Incorporated in 2010, Madhya Pradesh Today Media Limited is primarily engaged in the publication of newspaper, news through newsportal and event based magazine. They are a publishing house having a daily evening Hindi newspaper that was primarily launched in MP and is currently available in Chhattisgarh, UP, Delhi and Maharashtra. The group has also launched a Morning Daily soon thereafter in the year 2010. Now it also has plans to start publication and printing in other States of India in the years to come. The company has a strong team of experts having wide experience in print media. Pradesh Today has all 12-page colored newspaper with an internationally acceptable size form – The first of its type in the Madhya Pradesh State. Pradesh today now covers entire Zone’s all over the Madhya Pradesh by contributing its morning newspaper in 52 Districts of Madhya Pradesh state like Hoshangabad, Vidisha, Dhar, Neemuch, Sagar, Shivpuri, etc. Pradesh today is the only newspaper covering both evening as well as morning newspaper. On performance front, for last four fiscals, MPTM has posted turnover/net profits of Rs. 15.68 cr. / Rs. 0.71 cr. (FY14), Rs. 15.37 cr. / Rs. 0.42 cr. (FY15), Rs. 15.20 cr. / Rs. 0.65 cr. (FY16) and Rs. 19.08 cr. / Rs. 2.33 cr. (FY17). Sudden spurt in top and bottom lines for FY17 is surprising. For last three fiscals it has posted an average EPS of Rs. 6.01 (on post bonus issue till July 2017 basis) and average RoNW is 40.60%. Issue is priced at a P/BV of 3.55. If we attribute latest working on fully diluted equity post issue, then asking price is at a P/E of 12.9 plus. As per prospectus details, its listed peers are trading at a P/E ranging from 9 to 18 (with an average P/E of around 15). Thus issue appears fully priced. On merchant banker’s front, this is the first mandate from its stable and has no past track record. As per financials, company's growth was stagnant upto FY16 and then sudden jump in FY17, RoNW is 40.60% for last three fiscals and issue is fully priced. So we give NEUTRAL rating to this SME IPO.

• 1 Mr. Hradayesh Kumar Dixit
• 2 Mr. Shantanu Dixit