PINC Research has maintained buy rating on IRB Infrastructure Developers Ltd with a price target of Rs 165 in its report dated Dec 15, 2010.

As per report, JPL for its leadership in UP (the largest print market in terms of readership and print ad value), strong position in growing regions such as Bihar and Jharkhand, better cost efficiency, phased expansion into other forms of media businesses, and a wider portfolio (including Mid-Day).

Business growth in H1FY11 (15% ad growth) strengthens the belief that the company is well poised to benefit from steady growth in the print media sector.

What will move the stock?

1) Robust ad CAGR of 18% over FY10-12E and improvement in margins;
2) Broad-based traction in other business verticals;
3) Inorganic growth supported by the Blackstone investment.

As per report, the revenue estimates vary from consensus by ~8% for FY12E. Our FY12 net margin forecast of 19% is in line with consensus. The FY12 EPS estimate, however, is 4% higher than consensus.