Dish TV: KR Choksey Research Report

DTH market is growing rapidly. We believe Dish TV being a market leader with a market share of 28.6%, is expected to benefit in garnering high volume growth. We expect growth in subscriber addition on account of higher ad spend by Dish TV. The same along with ARPU improvement derived by increasing HD subscribers, favorable regulatory changes, and lower interest expense will reflect in improvement in overall profitability of Dish TV. At current price Dish TV stock is trading at 17.6x and 11.6x, EV/EBITDA. We retain our HOLD recommendation on the Dish TV stock and our target price to Rs 88 by assigning to 20x EV/EBITDA to FY12E earnings