Buy Dish TV India, target Rs 125: UBS

UBS has a buy call on Dish TV India Ltd. with a target price of Rs 125. The current market price of Dish TV India Ltd. is Rs 96.65. Time period given by analyst is a year, when Dish TV India Ltd. price can reach the defined target. UBS expects Dish TV to benefit from phases III and IV of digitisation and forecast 15 per cent CAGR in subscription revenue and EBITDA over FY16-19. The global investment bank expects sustained high EBITDA margins of 34 per cent to help Dish to turn net-cash-positive by FY18. The stock is trading at attractive valuations relative to history. The current share price reflects market concerns on slower revenue growth on potential market share loss and ARPU stagnation, which UBS believes is overdone.