CMP: 40

Deccan Chronicle Holdings Ltd. publishes newspapers.

Deccan Chronicle is a great value buy in small cap space. Its currently trading at a P/E of 38 (Due to Q4 FY11 losses). Company has debt of little over 300 Crores which has been reduced over the last 5 years. Why is it a value buy? It has cash equivalents of 700 Crores which puts its enterprise value at only 400 Crores which makes it a value buy. Revenues have risen from 553 Crores to 976 Crores in the last 5 years. Profits have fluctuated between 140 Crores to 260 Crores in the last 5 years. Its not a growth pick. Profits have fluctuated and dipped. Its a value buy. Buy now, hold for long term and book profits when yearly profits shoots above 100 Crores.