Positive on Dish TV; see strong cash flows over next 2-3 years: Niraj Dalal

In a chat with ET Now, Niraj Dalal, 3A Capital Advisors, shares his view on Dish TV.

ET Now: What could be the major reason behind Dish TV’s recent performance? Is it the excitement before the quarterly numbers that is lifting the stock higher? Jawahar Goel in his last interaction with ET Now categorically mentioned that the company will earn at least Rs 100 crore in FY16.

Niraj Dalal: March was the first quarter when Dish TV actually came out with better-than-expected results and the belief in the stock got reinforced. The management is extremely bullish on the company’s prospectsThe reason why I have steadfastly believed in Dish TV is due to a confluence of many factors. With digitisation, the company’s operations are getting in sync. It is reaching a size and scale where there are operating leverages.

It has taken its time. It has been eight-nine years since the stock has been listed, but has not done too much. But all the factors are in place now and the basic belief I have is once you have a good stock, the stock starts performing, just hold on to it.

I mean we are in for very good times in Dish TV. Whether reports Rs 100-crore number this year or not, the idea is when you have a company that is going to generate the kind of cash flow that Dish TV is likely to generate over the next two-three years; you can do the maths yourself. The stock is not going to stay at 100 bucks, it is going to be much higher.