Deccan Chronicle Holdings Ltd., India’s third-largest newspaper publisher, jumped the most in a more than a month as investors judged the 19 percent drop in less than two weeks may have been excessive.
The shares surged as much as 10 percent to 78 rupees, the steepest advance since March 23, and traded at 76.1 rupees as of 11 a.m. in Mumbai, up 7.6 percent. The stock has slumped 19 percent in nine days through yesterday, and trades at 7.4 times estimated earnings, compared with 26 times for rival HT Media Ltd. and 20 times for Jagran Prakashan Ltd., according to data compiled by Bloomberg.
“It may be a valuation play today,” Chitrangda Kapur, an analyst with Angel Broking Ltd., said by phone in Mumbai. “The stock hasn’t reacted to any positive news recently, including a buyback” at as much as 180 rupees apiece, she said. Angel has a “buy” rating and a stock price-target of 120 rupees.
Deccan’s shares are the biggest gainers on the 283-member Bombay Stock Exchange Mid-Cap index today.