Dec 06, 2017 12:22 PM IST | Source:

Brokerages remain upbeat on Dish TV post Q2 show; CLSA, B&K hike target price

The direct-to-home operator reported a consolidated net loss of Rs 17.87 crore for the second quarter ended September 30, 2017.

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Brokerage houses largely remained positive on Dish TV after the company reported its September quarter earnings.

The direct-to-home operator reported a consolidated net loss of Rs 17.87 crore for the second quarter ended September 30, 2017.

The company had posted a net profit of Rs 68.96 crore in the July-September quarter a year ago, Dish TV said in a BSE filing.

Its revenue from operations came down 3.93 per cent to Rs 748.58 crore during the quarter under review as against Rs 779.28 crore a year earlier.

Total expenses were at Rs 783.47 crore, up 5.97 per cent, as against Rs 739.31 crore.

"Average revenue per user (ARPU) strengthened to Rs 149 while churn rate recovered to close at slightly less than 0.8 per cent per month," the company said.

Its shares of direct-to-home operator Dish TV today witnessed volatile trading on the bourses Shares of the company opened on a weak note at Rs 79.15 and touched an early low of Rs 78.30. Later the stock rallied to a high of Rs 81.35 amid volatile trade on BSE.

Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 108

CLSA said that Q2 earnings were underlined by slow recovery in ARPU & subscriber additions. It lowered EBITDA estimates by 5-8 percent, but remains positive. It sees significant synergy benefits for the firm from Videocon D2H merger.

Brokerage: IDFC | Rating: Outperform | Target: Rs 92

The brokerage said that the second half of FY18 ARPU is expected to be higher than the first half. Further, the D2H merger may yield revenue and cost synergies. It cut FY18/19 earnings by 51%/35% as we increase D&A expenses.

Brokerage: Morgan Stanley

Morgan Stanley said that the company’s Q2 revenue was in-line with estimates; EBITDA Beat Of 3% was seen. Further, average revenue per user improved marginally in Q2 but net subscriber additions remain soft. The research firm believes that GST will aid margin expansion, benefits to mainly accrue over H2FY18.

Brokerage: B&K | Rating: Outperform | Target: Raised to Rs 95

The brokerage believes that there is incremental recovery in operating metrics. Further, the management expects ARPU to improve in Q3/Q4, partly aided by GST. It also said that the rating was due to share price correction, recovery in ARPU, improved earning visibility and merger with Videocon D2H.

Brokerage: HDFC Securities | Rating: Buy | Target: Cut to Rs 102

The brokerage house remains positive on the back of digitisation, merger with Videocon d2h and inexpensive valuations. Further, materialization of synergy benefits post-merger is key near-term trigger.

At 12:12 hrs, Dish TV India was quoting at Rs 82.60, up Rs 2.15, or 2.67 percent, on the BSE. It touched an intraday high of Rs 83.10 and an intraday low of Rs 78.30.
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