Result Update: Dish TV - SELL - TP Rs.82 - Kotak

Dish TV's 4QFY17 revenues came in below estimates, as both subscriber adds, and ARPU disappointed. Weakness in ARPU has resulted from recent promotional offers by the company, as also consumer down-trading, in the context of the fact that Dish TV is significantly exposed to rural geographies (impact higher both in terms of demonetization and in terms of exposure to competitive threats from FreeDish). We expect that the drivers of the weak performance in the quarter shall likely persist through 1HFY18 at least, impacting full-year financials. We cut our FY18E EBITDA/ EPS by 12%/32%, and cut our price target to Rs 82 (Rs 97 earlier). While Dish TV is potential beneficiary of several regulatory changes as well as potential benefits of merger with Videocon-d2h, we believe the concerns in the short-term shall overweigh the potential benefits in so much as valuations are concerned. We downgrade the stock to SELL (ACCUMULATE earlier).

Shares of DISH TV INDIA LTD. was last trading in BSE at Rs.87.05 as compared to the previous close of Rs. 81.55. The total number of shares traded during the day was 1032462 in over 5856 trades.

The stock hit an intraday high of Rs. 87.5 and intraday low of 82. The net turnover during the day was Rs. 88949542.

Source : Equity Bulls

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