Dish TV - 1QFY2013 Result Update - Kotak

Dish TV's EBITDA surprised positively, indicating greater leverage that the company has been able to extract from content expenses and selling and distribution expenses. We raise our medium/ long-term EBITDA estimates (8%-9%, for FY13/FY14), resulting in higher fair value estimate (Rs 76, versus Rs 68 previously).

While near-term concerns (soft subscriber adds, possibility of high competitive intensity as DAS deadline approaches) remain, our longterm positive view is intact, on account of DAS implementation and changes in broadcasting value chain, which shall impact DTH operators favorably.

At CMP, valuations (11.4x EV/ EBITDA FY13E) are still at the lower end of Dish TV's EV/ EBITDA band. Maintain ACCUMULATE.

Source : Equity Bulls

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