NDTV Profit

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Change Change %
-0.05 -0.06%

Updated:19 Apr, 2018, 15:52 PM IST

Change Change %
-0.10 -0.13%

Updated:19 Apr, 2018, 16:01 PM IST

Research Report Detail

Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
HDFC Securities
22-08-2017 Buy 78.10 105.00
Open Long (1Y)

HDFC Securities initiates Dish TV India with buy

Dish TV (DITV), a pioneer in India's DTH (direct-to-home) space is coming off a phase of under-performance (-22% in three months). DITV's weak FY17 performance (EBITDA fell 5%) was in stark contrast with Videocon D2H and Airtel DTH (which posted EBITDA growth in the 20s). Persistently inferior subscriber stability and ARPU have undermined DITV's performance. The upcoming merger with Videocon D2H holds significant cost rationalization potential (Rs 4.7bn by FY20E, around 23.7% of FY17 EBITDA).Initiate coverage with BUY and a TP of Rs 105 @ 9x FY19E EV/e. Our positive view on DITV derives from its inexpensive valuations (7.5/6.4x FY19/20E EV/e), synergies from the merger, DAS IV digitisation and GST. Further benefits can accrue from a license fee reduction and TRAI's tariff order.

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