Axis Direct recommended hold rating on Siti Networks with a target price of Rs 36 in its research report dated February 23, 2017.
Axis Direct's research report on Siti Networks
Q3FY17operational performance was driven by 0.5 mn addition in digital cable subs (phase III cities) to 9 mn; monthly collections stood flat QoQ in phase I/II (at Rs 103 and Rs 78), but improved in phase III (Rs 40 vs. 25 in Q2) – expected to improve post phase IV deadline in FY18.To improve its collections further, Siti moved to prepaid model in select states (1 mn subs migrated) - pan-India roll out on the cards.
We expect Sitito benefit from gradual monetization of phase III digital subscribers, given its strong reach and superior on-the-ground execution. Our TP stands at Rs 36 (10x FY18E EV/adj. EBITDA). Maintain HOLD given limited upside from CMP.
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First Published on Mar 1, 2017 10:46 am