Edelweiss bullish on Dish TV India has recommended buy rating on the stock with a target price of Rs 96 in its research report dated July 11, 2018.
Edelweiss' research report on Dish TV India
Dish TV’s (Dish) Q1FY19 sales and EBITDA increased by 8% QoQ and 39% QoQ, respectively. Key highlights: 1) 8.1% QoQ rise in subscription revenue due to incrementally higher HD viewership, lower package discounts and price hikes for a majority of recharge packages; 2) QoQ net subscriber additions were 0.3mn versus 0.2mn in Q4FY18; and 3) EBITDA margin spiked 748bps QoQ to 33.6% due to a high base on account of a one-off merger-related cost to the tune of INR600mn in Q4FY18, as well as backend, IT and infrastructure cost synergies materialising during the quarter. Potential catalysts: 1) cost synergies from the Videocon D2H merger (management guidance: INR5.1bn for FY19); and 2) a level playing field in the TV space in the wake of TRAI’s tariff order.
Maintain ‘BUY’. However, impact of Jio GigaFiber is a key concern.
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