Accumulate Dish TV - Emkay Global

Dish TV

Reco: ACCUMULATE
CMP: Rs 61
Target Price: Rs 73

Disappoints on the expectations

Revenue at Rs4.9bn was up 1.7% qoq, (our est. of Rs5.1bn). ARPU was flat QoQ at Rs152. Subs net adds at 0.74mn (our est of 0.8mn). Churn at 1.5% v/s 1.1% in Q2FY12.

EBITDA declined 1.4% qoq on account of lower revenue and higher dealer commission while other cost increases remained on expected lines.

Net loss for the quarter was at 429mn (Rs485mn in Q2FY12) due to Rs156mn of forex loss pertaining to rupee depreciation and subdued operational performance.

EBITDA est. cut by 10.4%/11.6% for FY12E/FY13E. Valuations at 15.5x and 11.3x EV/EBITDA of FY12E and FY13E, resp. Retain ACCUMULATE with revised TP of Rs73 (earlier Rs96).

The Dish TV stock closed the day at Rs.59.85, down by Rs.1.30 or 2.13%. The stock hit an intraday high of Rs.61.70 and low of Rs.56.90.

The total traded quantity was 16.60 lakhs compared to 2 week average of 11.58 lakhs.

Source : Equity Bulls

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