Rs 600-700 crore revenue potential: Advertising stock jumps as the company receives exclusive ad rights for 67 BMRCL metro stations!

Signpost India Ltd, a major advertising company, has secured the exclusive rights to manage all advertising at 67 key metro stations in Bengaluru, operated by the Bangalore Metro Rail Corporation Ltd. (BMRCL). The contract, which is valid for a period of nine years until 2034, is expected to generate an impressive revenue of Rs 600 crore to Rs 700 crore (excluding GST). This partnership provides the company with over 95,000 square feet of advertising space, both static and digital, across high-traffic metro stations, reaching an estimated 30 million monthly riders.

This strategic win is a significant boost to the company's national transit media portfolio and strengthens its long-term revenue streams. The acquisition of these rights aligns with the company's growth strategy to expand its presence in major urban transit systems, solidifying its position as a fast-growing force in the Out-of-Home (OOH) advertising industry.

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Signpost India Ltd, founded in 2008, is a prominent Digital Out of Home (DOOH) and integrated advertising company. It operates as a leader in the DOOH sector, claiming to have India's first and largest main street DOOH billboards and the world's largest digital bus queue shelters. The company provides a range of services beyond advertising, including hybrid mobility solutions like e-bikes and traffic surveillance booths. With a vast portfolio, it owns 33.9 million square feet of ad space across Indian markets and leverages various ad-tech solutions. Additionally, the company's projects involve executing large-scale public infrastructure initiatives aimed at enhancing commuter convenience, such as installing ergonomic seating, tactile flooring, accessibility ramps, and charging stations in public spaces.

On Monday, shares of Signpost India Ltd jumped 10.5 per cent to Rs 311.90 per share from its previous closing of Rs 282.30 per share. The company has a market cap of over Rs 1,500 crore with PE of 41x, an ROE of 17 per cent and an ROCE of 15 per cent. The stock is up by 74 per cent from its 52-week low of Rs 179.65 per share.

Disclaimer: The article is for informational purposes only and not investment advice.