Yes I agree with your view this share is rising without any reason. The DC circulation is in tough times with Times of India increasing its share day by day in Hyderabad city where the main prescence of the Deccan Chronicle is.
With the prescence of Times of India as a leading news paper of South it is not possible for DC to compete with it in a city like Bangalore.
IMADUD, the savings on newsprint paper alone will be around Rs. 200cr for DC. The lower paper costs will also be beneficial to all other newspapers.
Bangalore which was losing money is moving towards break even.
The Ad rates have been hiked by 20% from Oct 1st.
The paper is a leader in AP and Chennai and No2 in Bangalore.
H2 will be highly profitable and the DC stock quotes at half the PE for the other print media stocks.
DC has the potential to go up 100% from here if the September, Dec quarter results are good and when the equity placement is made in Deccan Chargers (probably by Q1 2010).
So now downside risks with significant upside potential over 6 months.
Inspite of so many positive news like 20% increase in Ad rates across the board and Deccan charger IPO in near future and fall in paper costs which is main raw material for any news paper , any idea why this stock is falling ???
We will wait for September results: because of reasons in previous mail..they are likely to be good. So stock will get re-rated based on September and December results.
| NIFTY 
