Dish TV India Ltd - Kotak

Dish TV is well placed to benefit from changing viewer preferences as well as significant regulatory changes underway in the broadcasting space. We forecast strong long-term earnings growth for the company, and find the valuations attractive at CMP. Near-term, we believe implementation of digitization, possible rise in foreign investment limits are potential positive triggers. Industry issues, particularly relating with high churn, are being tackled by the DTH industry, in our understanding.

Digitization and (consequent) possibility of sharp upward move in ARPUs shall overpower expectedly unimpressive earnings performance in the next few quarters. Irrational competiton during digitization remains the key risk.

We initiate with ACCUMULATE rating and price target of Rs.68.

Source : Equity Bulls

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