Buy Dish TV India; target of Rs 100: Motilal Oswal
Motilal Oswal ‘s research report on Dish TV India
After witnessing a weak performance over the last few quarters, Dish TV (DITV) – post its merger with Videocon – rebounded strongly in 1QFY19. Subscription revenue grew 8% QoQ to INR14.9b, driven by steady 7% QoQ ARPU growth, leading to 8% QoQ growth in consol. revenue to INR16.6b (7% beat). Consol. EBITDA grew by a robust 39% QoQ to INR5.6b (27% beat), led by revenue growth and 3% QoQ opex savings.
We believe DITV is attractively priced – at CMP, the stock trades at EV/EBITDA of 6x FY19E and 4.7x FY20E. We increase our TP to INR100 (prior: INR95), valuing DITV at 7x on FY20E. Maintain Buy.
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