Buy Dish TV – Bullish FY15 guidance: Elara

Dish TV’s share price has seen pain on YTD basis, as the company struggled to raise ARPU and subscriber base under a tough macro environment, while adverse currency movement too hit operating performance. With FY15 promising a trend reversal on all three counts, we believe the stock is due for a re-rating. At ~7x FY16E EV/EBITDA, the valuations are attractive and likely to improve as Dish TV progresses over turning PAT positive in FY15. We revise our DCF-based target price upwards to INR 80 from INR 70 and reiterate our Buy recommendation based on reasonable valuations and strong mediumterm growth outlook.

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