Reliance Securities has recommended 'Buy' on HT Media (HTML) with target price of Rs 127 in its report.

Commenting on the investment rationale, the stock broker said, ''The company is an established media house having presence in print, radio and digital through its brands Hindustan, Hindustan Times, Mint, Fever 104 and Shine.com. Hindustan is the second largest read daily in the country as per the Indian Readership Survey. The English dailies of HTML have been under ad-revenue pressure for past several quarters; however, a heartening pickup of 4.1% yoy was reported in 1QFY16 (excluding elections revenue, advertisement grew by ~7% yoy).

We factor modest revenue CAGR of 10% over FY15-17E and high operational costs digital business of the company is in the investment phase) resulting in earnings CAGR of ~7% over the same period. At the CMP, the stock is available at attractive valuations and hence, we recommend Buy on HTML with target price of Rs127.''

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