IDFC Securities neutral on Dish TV India, target price Rs 19

IDFC Securities has a neutral rating on Dish TV India in the long term with a target price of Rs 19. The stock ended up 7% at Rs 14.5 on Monday while the BSE Sensex closed 72.50 points down at 40,284.19.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 893.18 crore, down -3.58 % from last quarter sales of Rs 926.30 crore and down -43.98 % from last year same quarter sales of Rs 1594.29 crore. The company has reported net profit after tax of Rs -96.37 Crore in the latest quarter.


Investment Rationale

Dish TV’s Q2 performance was far weaker than anticipated, but business should gradually pickup from third quarter onwards. Ebbing competitive intensity in the South is a relief but the weak economic conditions, especially in Dish TV’s target markets and the rising popularity of DD FreeDish again, said IDFC Securities. Dish TV's promoter group liquidity concerns and their legal tussle with the erstwhile VD2H promoters would continue to remain a overhang on the performance, the brokerage said.