 "Jagran Prakashan rebounds from 52-week low on share buyback plan")
Shares of Jagran Prakashan, publishers of ‘Dainik Jagran’ newspaper, have opened 5% higher at Rs 164 per share on the BSE on Wednesday after the company announced a share buyback plan. The stock closed at a 52-week low of Rs 156 on Tuesday.
“The board of directors of Jagran Prakashan is scheduled to be held on Friday, 27th April, 2018 inter-alia to consider the proposal for buy-back of shares,” the company said in a regulatory filing on Tuesday, after market hours.
The primary objective of a share buyback programme is to arrest the fall in the value of a stock by reducing the supply of the stock, which essentially pushes up the share price through a better P/E multiple. The other objective is to improve earnings per share (since the same dividend amount is now distributed among fewer shares).
In past one year, Jagran Prakashan has underperformed the market by falling 21% as compared to 17% rise in the S&P BSE Sensex till yesterday.
The company had reported 7% year on year dropped in its consolidated net profit at Rs 2,482 million for the first nine months ended December 2017. Operating revenues were up 2% at Rs 17,559 million over the same period last year.
Although there is a flat revenue and some de-growth in profits which is on account of the reasons beyond our control, some recovery has been seen in various discretionary spend sectors, real estate, BFSI and Education. Let us hope that these recoveries are sustained, said Mahendra Mohan Gupta, Chairman and Managing Director, Jagran Prakashan, while announcing December quarter results.
At 09:27 am; it was up 2% at Rs 160 against 0.11% rise in the benchmark index. A combined 363,647 shares changed hands on the counter on the BSE and NSE so far.
“The board of directors of Jagran Prakashan is scheduled to be held on Friday, 27th April, 2018 inter-alia to consider the proposal for buy-back of shares,” the company said in a regulatory filing on Tuesday, after market hours.
The primary objective of a share buyback programme is to arrest the fall in the value of a stock by reducing the supply of the stock, which essentially pushes up the share price through a better P/E multiple. The other objective is to improve earnings per share (since the same dividend amount is now distributed among fewer shares).
In past one year, Jagran Prakashan has underperformed the market by falling 21% as compared to 17% rise in the S&P BSE Sensex till yesterday.
The company had reported 7% year on year dropped in its consolidated net profit at Rs 2,482 million for the first nine months ended December 2017. Operating revenues were up 2% at Rs 17,559 million over the same period last year.
Although there is a flat revenue and some de-growth in profits which is on account of the reasons beyond our control, some recovery has been seen in various discretionary spend sectors, real estate, BFSI and Education. Let us hope that these recoveries are sustained, said Mahendra Mohan Gupta, Chairman and Managing Director, Jagran Prakashan, while announcing December quarter results.
At 09:27 am; it was up 2% at Rs 160 against 0.11% rise in the benchmark index. A combined 363,647 shares changed hands on the counter on the BSE and NSE so far.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%