Broker's Call: PhillipCap upgrades DishTV

PhillipCapital has upgraded Dish TV from ‘Neutral’ to ‘Buy’ with a target price of Rs 80 on the back of improving industry fundamentals and tepid valuations.

“We believe that the industry’s discipline is sustainable as participants shift their focus from revenue growth to profitability. These changes will lead to Dish TV’s growth being self-funded in FY14 thereby addressing concerns on equity dilution. We estimate Dish TV’s EBITDA to grow at a 27 per cent CAGR from FY13-15E while valuations remain at undemanding levels of 10.5x and 8.3x FY14 and FY15 EV/EBITDA,” it said in a report.