Bullish on Dish TV: Rajesh Jain, Market Strategist
Rajesh Jain, Market Strategist, in a chat with ET Now talks about Dish TV.
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| Rajesh Jain, Market Strategist, in a chat with ET Now talks about Dish TV.
Why are you bullish on Dish TV?
Basically it is a proxy play for the tremendous play TV opportunity in the Indian cable distribution space. We are all aware of the fact that Dish TV is India’s largest DTH service. There is a lot of competition that has come in and DTH to a certain extent is now seeing the introduction of value added products.
Dish TV is perhaps the only listed entity through which investors can partake in the tremendous growth that this segment is witnessing. At close to 4000 crores, I do not think the market capitalisation of Dish TV reflects the true value of the business or the potential going forward and my feeling is that over a period of 12 to 18 months, you should have reconsolidation in this space because a lot of new entrants have come in.
But the businesses have yet to acquire critical mass - at least two or three of them. Dish TV, Sun TV, Tata and Reliance and Airtel are also entrants in this space but we are not seeing the kind of numbers we would like to witness out there yet.
So Dish TV clearly is the lowest cost producer in this space and has the widest reach and the market will sooner than later give a valuation for that.
Why are you bullish on Dish TV?
Basically it is a proxy play for the tremendous play TV opportunity in the Indian cable distribution space. We are all aware of the fact that Dish TV is India’s largest DTH service. There is a lot of competition that has come in and DTH to a certain extent is now seeing the introduction of value added products.
Dish TV is perhaps the only listed entity through which investors can partake in the tremendous growth that this segment is witnessing. At close to 4000 crores, I do not think the market capitalisation of Dish TV reflects the true value of the business or the potential going forward and my feeling is that over a period of 12 to 18 months, you should have reconsolidation in this space because a lot of new entrants have come in.
But the businesses have yet to acquire critical mass - at least two or three of them. Dish TV, Sun TV, Tata and Reliance and Airtel are also entrants in this space but we are not seeing the kind of numbers we would like to witness out there yet.
So Dish TV clearly is the lowest cost producer in this space and has the widest reach and the market will sooner than later give a valuation for that.
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