Strong presence in high growth states- Presence in burgeoning tier II/III towns, leadership or challenger position in almost all the markets and advertisement driven model makes case for rich valuations.

Aggressive expansion through well thought out strategies guarantees high earnings and profitability going forward- Expansion in Jharkhand will be completed by end of FY11 and Bihar edition will be launched in FY12. This will further reduce the dependence on current markets and hence will de-risk its business model.

Strong financials supports future growth- We believe the company would register revenue 2Yr CAGR of 16% and PAT 2Yr CAGR of 22% over FY10-12E on the back of presence in high growth markets, expansion in newer lucrative markets (Bihar & Jharkhand) and new editions getting matured.

At the CMP, the stock quotes at 16.1x FY12E EPS(consensus). We believe the company demands rich valuations on the back of high growth in earnings and profitability and de-risked business model. Currently we do not have any rating on the stock. However looking at strong fundamentals and future growth prospects of the company, the stock looks attractive at these levels.