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
READ MORE »Posts tagged K. R. Choksey
Ganesh Polytex: K. R. Choksey Research Report
PET recycling has got tremendous growth potential: With changing lifestyle and higher disposable income, Indian PET demand is expected to grow at 7.5% pa from current level of 3.40 lac TPA. Current PET recycling capacity in India is 1.57lac TPA, thus by Y 2012, India will have 2.00Lac TPA excess PET waste (130% more than installed recycling capacity). Ganesh Polytex Ltd, with largest PET recycling capacity will be natural beneficiary of this untapped emerging growth opportunity. Capacity expansion will lead to growth in turnover: By FY12E Ganesh Polytex will be expanding recycling capacity by another 14400 TPA .This will take RPSF capacity to 72000 TPA by FY12E. It will also set up a recycled POY yarn manufacturing facility with a capacity of 15000TPA . Because of enhanced capacity, Turnover in FY12E will grow to Rs 351 cr from Rs 199 cr in FY 10.
READ MORE »Jagran Prakashan: K. R. Choksey Research Report
Jagran Prakashan Ltd being a leading Hindi publisher in the country having dominant position in largest Hindi advertising market (UP), its entry into English segment by acquiring profitable venture (Mid-day) is commendable. We believe synergies at cost and advertising rates would offset competition in markets like UP from HMVL and Bihar & Jharkhand from DBCORP, in turn will drive its long term profitability. Holding company with net cash of Rs 275 crore and Rs 175 crore in Jagran Prakashan Ltd itself would invite them to explore newer markets through inorganic or organic growth and further penetrate their current markets. So, we maintain our “Buy” rating on the stock of Jagran Prakashan Ltd with 18-months target price to Rs 153, representing upside potential of 25%. At the CMP of Rs 138, stock of Jagran Prakashan Ltd is trading at FY11E and FY12E EV/EBITDA of 13.9x and 12.3x for EBITDA of Rs303.3 crore and Rs343.4 crore respectively. Taking into account the current EV/EBITDA of 15.0x, we assign a multiple of 15.5x to Jagran Prakashan Ltd which provides a target price of Rs 177 with 27% upside potential
READ MORE »Allied Digital Services – K. R. Choksey Research Report
At CMP of Rs 241 Allied Digital Services trades at a forward P/E of 7.3x and a TTM P/E of 10x, whereas its peers like Omnitech and Glodyne trade at a TTM P/E of 10x and 20x respectively. We believe that with the expected margin expansion going forward, the stock is due for a re-rating. Valuing Allied Digital Services at P/E of 10x FY11E EPS of Rs 32.7, we recommend a BUY on Allied Digital Services with a 12M target of Rs 327
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