Dish TV stock is in a high growth phase: ICICI Securities

Ketan Kharkhanis, Head of Active Trader Service, ICICI Securities in a chat with ET Now gives his outlook on Dish TV.

Do you expect the growth momentum to continue for Dish TV?

Yes, it is definitely in a high growth momentum and we expect this subscriber base to grow at a CAGR of around 29% over the next two years to around 11 million subscribers. Also if you look at the results that Dish TV has posted just yesterday, it has been above the market expectation and the stock is also very positive and reacted to it.

Quarter on quarter, the income has grown 8.8% and year on year, it has a growth of 46.4%. We expect 29% CAGR on the customer base to grow. Also the top line is likely to grow at higher 34% on account of lower content cost and lower subscriber addition cost.

So definitely the stock is in a high growth phase and we expect this stock to outperform and given the strong industry outlook for this particular segment, we expect over the next two years the EPS from -7 that is currently quoting at to move to around -0.8. So somewhere in the year FY12-FY13, we expect the stock to breakeven and we put a price target of around Rs. 52 on the stock.