Result Update

July 29, 2016

Dish TV (DISHTV)

Rating matrix
Rating
Target
Target Period
Potential Upside

:
:
:
:

Hold
| 87
12 months
- 7%

Continues to disappoint on ARPU.

Whats changed?
Target
EPS FY17E
EPS FY18E
Rating

Unchanged
Changed from | 2.5 to | 2.3
Unchanged
Unchanged

Quarterly performance
Revenue
EBITDA
EBITDA (%)
PAT

Q1FY17
778.6
264.6
34.0
40.9

Q1FY16 YoY (%)

736.7
5.7
236.8
11.7
32.1 184 bps
54.2
NA

Q4FY16 QoQ (%)

799.4
-2.6
260.8
1.5
32.6 136 bps
482.8
-91.5

Key financials
| Crore
Net Sales
EBITDA
Net Profit
EPS (|)

FY15
2,773
733
3
0.0

FY16
3,051
1,025
692
6.5

FY17E
3,264
1,137
242
2.3

FY18E
3,831
1,364
384
3.6

FY15
3186.6
2,952.0
15.1
NM
NM
NM

FY16
14.5
13.4
10.5
26.3
181.9
31.1

FY17E
41.4
38.3
9.3
16.1
39.0
36.2

FY18E
26.1
24.2
7.4
10.0
38.2
43.7

Valuation summary
P/E
Target P/E
EV / EBITDA
P/BV
RoNW
RoCE

Stock data
Particular
Market Capitalization

Amount
10,008.8

Total Debt (FY16)

Cash (FY16)

1,156.4
339.2

EV
52 week H/L
Equity capital
Face value

10,744.0
121 / 67
106.6
1.0

Price performance
Dish TV
Hathway Cable

1M
0.3
-4.2

3M
4.5
-13.8

6M
7.6
-16.0

| 94

12M
-17.0
-31.3

Research Analysts
Bhupendra Tiwary
bhupendra.Tiwary@icicisecurities.com
Sneha Agarwal
sneha.agarwal@icicisecurities.com

ICICI Securities Ltd | Retail Equity Research

Dish TV reported its Q1FY17 numbers with revenues at | 778.6 crore,

up 5.7% YoY, lower than our expectation of | 826.7 crore. The miss
on reported revenues was owing to a change in revenue accounting
wherein it reported revenues net of entertainment tax vs. gross
earlier. ARPU (like-to-like) during the quarter came in at | 174 vs.
| 174 in Q4FY16 (our expectation - | 176), resulting in subscription
revenues at | 728.2 crore (like to like subscription revenues stood at |
766.9 crore). Muted ARPU, vis--vis peers like Videocon DTH and
Airtel that delivered 2-2.5% ARPU growth QoQ, remains a cause for
concern. The subscriber addition (net) was better-than-expected at
0.40 million (our estimate 0.36 mn) but largely in line with peers
EBITDA came in at | 264.6 crore vs. our expectation of | 278.5 crore,
up 11.7% YoY. Margins came in at 34% (vs. our estimate of 33.7%),
albeit adjusting for the accounting change the margin was lower at
32.4% owing to higher employee & other operating cost
PAT came in at | 40.9 crore, lower than our estimates at | 57.9 crore,
given the miss on topline and EBITDA

Subscriber additions decent, guides ~1.5-1.9 million net adds in FY17E

Dish TV subscriber addition (net) was better-than-expected at 0.40 million
(mn) (our estimate 0.36 mn) but largely in line with peers like Videocon
DTH and Airtel, which added 0.43 mn & 0.42 million, respectively, in the
quarter. However, we note that Dish has gradually slipped in terms of
market share in net additions from ~30%+ in FY12 to ~23-24% currently,
which clearly is a sign of worry. The net subscriber base was at 14.9
million as on Q1FY17. The company expanded its net subscriber addition
guidance to 1.5-1.9 million in FY17E vs. earlier guidance of 1.5 million.
Consequently, we have increased our STB seeding estimates to 1.6
million net additions in FY17E (vs. 1.5 million earlier) while building in 1.3
million net adds in FY18E.
ARPU muted despite price hikes taken in March, 2016
The ARPU trajectory of Dish TV has been intriguing considering its peers.
The like-to like-ARPU during the quarter came in flattish at | 174, despite
several price hikes in the North and South packs with effect from March
22, 2016 to the tune of 4-8%. The company indicated that customers
resorted to downtrading of packs. The muted ARPU, vis--vis peers like
Videocon DTH and Airtel who delivered 2-2.5% ARPU growth QoQ,
remains a cause for concern. The company, however, reiterated its
guidance of 3-4% ARPU growth (on a like to like basis), which we believe
hinges on whether it manages to check on the downtrading. Due to the
change in revenue accounting, the reported ARPU would be lower.
However, on a like to like basis, we factor in ARPU growth of 2.4% & 3.6%
to | 176.1 & | 182.4 for FY17E & FY18E, respectively.
Letting its leadership slide; maintain HOLD
Dish, being a leader and earliest entrant, was expected to be the biggest
beneficiary of DTH players ability to tap the digitisation drive efficiently.
However, the company, in recent years, seemed to have let go its grip on
the leadership position by slipping both in terms of ARPU growth and
market share in net addition. Furthermore, we also remain wary of
frequent changes in accounting practices by the company and the
prospect of the same being accepted by regulators. We await traction in
ARPU growth and recovery in net adds market share before changing our
stance on the company. We maintain HOLD with a target price of | 87.

Variance analysis
Q1FY17 Q1FY17E
778.6
826.7

Revenue

Other Income
Employee Expenses
License Fees
Selling and Distribution expenses
Programing Cost
Other Operating Cost
Others
EBITDA

Q1FY16
736.7

Q4FY16
799.4

21.8
29.8
54.0
127.1
231.5
92.5
3.6
260.8

YoY (%) QoQ (%)

5.7
-2.6

11.9
38.1
55.1
117.5
232.6
65.9
4.9
264.6

15.0
35.5
55.1
82.6
227.2
49.0
59.0
278.5

26.2
34.7
54.3
101.2
212.0
96.0
-33.3
236.8

34.0

33.7

32.1

161.3
52.1

159.5
47.6

159.8
48.0

151.6
51.2

0.9
9

6.4
2

Total Tax
PAT

22.3
40.9

28.5
57.9

0.0
54.2

-402.9
482.8

NA
NA

-106
-91.5

Key Metrics
Net Subscriber Additions (Mn)

0.40

0.36

0.39

0.51

3.1

-20.9

14.90
174.0

14.86
176.3

13.30
173.0

14.50
174.0

12.0
0.6

2.8
0.0

EBITDA Margin (%)

Depreciation
Interest

Net Subscribers (Mn)

ARPU (in |)

-54.7
9.9
NA
16.0
10
-31.4
-115
11.7

-45.6
28.0
NA
-7.6
0
-28.8
33
1.5

32.6 184 bps 136 bps

Comments
The miss on reported revenues was owing to a change in revenue accounting
wherein it reported revenues net of entertainment tax vs. gross earlier. On a
like-to-like basis, revenues came in at | 817.2 crore, which is marginally
lower than our estimates
Employee expenses included one-time payment of bonus

THE EBITDA was lower owing to higher employee and other operating
expenses
Margins were optically higher owing to the change in accounting policy.
However, adjusting for the accounting change, the margin was lower at
32.4%

The PAT was lower owing to the miss in topline and EBITDA, and higher
interest cost
The subscriber addition (net) was better-than-expected at 0.40 million (our
estimate 0.36 mn) but largely in line with other DTH players like Videocon &
Airtel, which added 0.43 mn & 0.42 million, respectively

The ARPU remained muted despite price hike taken in March, 2016, as the
customers resorted to downtrading

Source: Company, ICICIdirect.com Research

Change in estimates
(| Crore)
Revenue

Old
3,457.8

FY17E
New % Change
3,263.7
-5.6

Old
3,910.3

FY18E
New % Change
3,830.8
-2.0

EBITDA
EBITDA Margin (%)

1,179.0
34.1

1,137.4
34.9

-3.5
76 bps

1,371.3
35.1

1,364.1
35.6

-0.5
54 bps

268.3

241.9

-9.9

387.1

383.8

-0.9

EPS (|)
2.5
2.3
Source: Company, ICICIdirect.com Research

-9.9

3.6

3.6

-0.9

PAT

Comments
The cut in topline estimate is owing to a change in revenue accounting by the
company wherein it reports subscription revenues net of entertainment tax vs. gross
earlier
We incorporate the change in accounting, which has resulted in higher margins
The earnings cut of FY17E is a result of incorporating Q1FY17 performance and baking
in higher interest cost. The FY18E earnings estimates are largely flat as topline cut
was compensated by superior margins

Assumptions
z

FY15
1.5

FY16E
1.6

Current
FY17E
FY18E
1.6
1.3

Earlier
FY17E
FY18E
1.5
1.4

Net Subscribers (Mn)

ARPU (in |) - on a like to like
basis

13
175.4

15
172.0

16
176.1

17
182.4

16
178.0

17
184.9

Reported ARPU (in |)

175.4

172.0

166.3

179.9

NA

NA

0.7%

0.7%

0.6%

0.6%

0.6%

Net Subscriber Additions (Mn)

Monthly Churn Rate

0.6%
Source: Company, ICICIdirect.com Research

Comments
Subscriber additions have been increased in line with the management's
guidance of seeding of ~1.5-1.9 million boxes in FY17E vs. 1.5 million earlier

On a like to like basis, we factor in an ARPU growth of 2.4% & 3.6% in to |

176.1 & | 182.4 for FY17E and FY18E, respectively
The ARPU has optically been adjusted lower given the change in revenue
reporting

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ICICI Securities Ltd | Retail Equity Research

Page 2

Company Analysis
Company guides for ~1.5-1.9 million net adds in FY17E
Dish TVs subscriber addition (net) was better-than-expected at 0.40
million (our estimate 0.36 mn) but largely in line with peers like Videocon
DTH and Airtel, which added 0.43 mn and 0.42 mn, respectively, in the
quarter. However, we note that Dish has gradually slipped in terms of
markets share in net additions from ~30%+ in FY12 to ~23-24%
currently, which is clearly a sign of worry. The net subscriber base was at
14.9 million as on Q1FY17. The company expanded its net subscriber
addition guidance to 1.5-1.9 million in FY17E vs. earlier guidance of 1.5
million. Consequently, we have increased our STB seeding estimates to
1.6 million net additions in FY17E (vs. 1.5 million earlier) while building in
1.3 million net adds in FY18E.
Exhibit 1: Subscriber details trends
20.0

182

18.0
16.0

176

175

14.0

170
165

10.0
8.0

160

158

6.0

155

4.0
2.0
0.0

180
175

172

170

12.0

185

10.7

11.4

12.9

14.5

16.1

17.4

FY13

FY14

FY15E

FY16E

FY17E

FY18E

Net Subscribers (million) - LHS

150
145

ARPU (|)

FY13 ARPU not comparable due to change in accounting policy, FY17E & FY18E ARPU is on like to like basis
Source: Company, ICICIdirect.com Research

Flattish ARPU a worry, management sticks to 3-4% ARPU growth

guidance
The ARPU trajectory of Dish TV has been intriguing considering its peers.
The like-to-like ARPU during the quarter came in flattish at | 174, despite
several price hikes in the North and South packs with effect from March
22, 2016 to the tune of 4-8%. The company indicated that customers
resorted to downtrading of packs. The muted ARPU, vis--vis peers like
Videocon DTH and Airtel that delivered 2-2.5% ARPU growth QoQ,
remains a cause for concern. The company, however, reiterated its
guidance of 3-4% ARPU growth (on a like to like basis), which we believe
hinges on whether it manages to check on the downtrading. While due to
the change in revenue accounting, the reported ARPU would be lower, on
a like to like basis, we factor in an ARPU growth of 2.4% & 3.6% to | 176.1
& | 182.4 for FY17E & FY18E, respectively.
Margins to look optically better after accounting change
The margins were optically higher owing to the change in accounting
policy. From Q1FY17 onwards, Dish would report revenues net of
entertainment tax vs. gross earlier. As a result of the accounting change
the company also expects saving in terms of the entertainment tax of
~| 17-18 crore, which would now be charged as a percentage on net
revenues. Furthermore, the company also expects savings in licence fee.
We do not incorporate licence fee saving given the lack of clarity over its
acceptance under the current policy. There is an impending content deal
renewal for Dish TV in September. However, the management indicated

ICICI Securities Ltd | Retail Equity Research

Page 3

that the same would be done once there is further clarity on the uniform
pricing to be implemented by TRAI. We have build in EBITDA margins of
34.9% in FY17E and 35.6% in FY17E and FY18E, incorporating the change
in revenue reporting.
Exhibit 2: EBITDA trend
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
(5.0)
(10.0)

34.9

33.6
26.7

25.0

26.4

22.7

7.4
(1.6)
FY13

FY14

35.6

10.0

0.1
FY15E

FY16E

FY17E

FY18E

(5.8)
EBITDA Margins %

NPM %

Source: Company, ICICIdirect.com Research

Other highlights:

ICICI Securities Ltd | Retail Equity Research

Digitisation Update: Out of 50 million TV households in Phase III,

43 million have been already digitised. For Phase IV, the
opportunity for digitisation ranges from 30-35 million

The set top box inventory stood at 8,50,000 as on Q1FY17

Capex for the quarter stood at | 215 crore. Guidance for FY17E
stands at | 850-900 crore

The management indicated that it would take another price hike

during Diwali (i.e. Q3FY17)

Out of the total gross add during the quarter, HD formed 31%
Zing formed 13% while 18% addition was for minimum | 174
package

Of the total subscriber base, 11% are on HD

Page 4

Valuation
Dish, being a leader and one of the earliest entrants, was expected to be
the biggest beneficiary of DTH players ability to tap the digitisation drive
efficiently. However, in recent years, the company seemed to have let go
its grip on the leadership position by slipping both in terms of ARPU
growth and market share in net addition. Furthermore, we also remain
wary of frequent changes in accounting practices by the company and the
prospect of the same getting accepted by regulators. We await a traction
in ARPU growth and recovery in net adds market share before changing
our stance on the company. We maintain our HOLD rating on the stock
with a target price of | 87, using DCF methodology.
Exhibit 3: DCF assumptions
Particulars
WACC
Revenue CAGR over FY16E - FY22E
PV of Cash Flow Till Terminal Year
Terminal Growth
Present Value of terminal cash flow
PV of firm
Less: Net Debt
Total present value of the Equity (excluding current cash)
Number of Equity Shares outstanding
DCF - Target price (|)

Amount
12.6%
13.0%
3,208.7
3.0%
6,798.4
10,007.2
735.2
9,272.0
106.6
87

Source: Company, ICICIdirect.com Research

Exhibit 4: Valuations

FY15
FY16
FY17E
FY18E

Sales
(| cr)
2,773.2
3,050.7
3,263.7
3,830.8

Growth
(%)
28.0
10.0
7.0
17.4

EPS
(|)
0.0
6.5
2.3
3.6

Growth
(%)
NA
NA
(65.1)
58.7

PE
(x)
NA
NA
41.4
26.1

EV/EBITDA
(x)
15.1
10.5
9.3
7.4

RoNW
(%)
NM
181.9
39.0
38.2

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 5

RoCE
(%)
15.4
31.1
36.2
43.7

140

100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

120

(|)

100
80
60
40
20
0
Jul-14

Sep-14

Dec-14
Price

Feb-15

May-15

Idirect target

Jul-15

Oct-15

Dec-15

Consensus Target Mean

Mar-16

May-16

(%)

Recommendation history versus consensus

Jul-16

% Consensus with BUY

Source: Bloomberg, Company, ICICIdirect.com Research

Key events
Date
Mar-11

Event
Registers a very high churn of 1.94 million subscribers and records a churn rate of 2.3%

Jun-12

Sunset date for Phase I of digitisation. Dish TV able to add only 1.1 million net susbcribers

Mar-13

Sunset date for Phase II of digitisation. Dish TV able to add only 1.1 million net susbcribers

Jan-14

Dish TV starts offering all the Indiacast UTV (except ETV) channels on an a la carte basis

Mar-14

Dish TV issues disconnection notice to 10 channels distributed by IndiaCast UTV, including CNBC-TV18 and IBN7 and some ETV regional channels, claiming low
popularity
In a bid to provide customised local television channels to regional viewers of the state, Dish TV India rolls out a new brand Zing. The new brand will offer
regional channels as the base while other segments can be added as per the needs of customers

Mar-14
Jul-14

Trai recommends license period extension to 20 years from 10 years, renewable for 10 years at once and license fees calulation as 8% of adjusted gross
revenues vs. 10% of gross revenues paid currently
Launches Zing in Tamil Nadu

Jan-15
Source: Company, ICICIdirect.com Research

Top 10 Shareholders
No.
1
2
3
4
5
6
7
8
9
10

Shareholding Pattern

Name
Essel Group
Agrani Holdings Mauritius, Ltd.
Baron Capital Management, Inc.
Reliance Nippon Lif e Asset Management Limited
Artisan Partners Limited Partnership
Columbia Threadneedle Investments (US)
Hasham Investment & Trading Co., Pvt. Ltd.
Birla Sun Life Asset Management Company Ltd.
Kotak Mahindra (UK) Ltd
HDFC Asset Management Co., Ltd.

Latest Filing Date % O/S

31-Mar-16 59.78
31-Mar-16 3.30
31-Dec-14 1.65
30-Jun-16 1.50
31-Mar-16 1.07
31-May-16 1.07
31-Mar-16 1.00
30-Jun-16 0.98
31-Mar-16 0.77
31-May-16 0.76

P ositionsition Change
637.2
0.0
35.2
0.0
17.6
7.1
15.9
0.0
11.5
4.7
11.5
0.0
10.7
0.0
10.5
0.1
8.2
8.1
8.1
6.2

(in % )
Promoter
FII
DII
Others

Jun-15
64.5
18.6
4.0
12.9

Sep-15
64.5
19.8
4.0
11.8

Dec-15 Mar-16
64.4
64.4
8.7
11.3
5.8
6.2
21.0
18.1

Jun-16
64.4
12.5
6.9
16.2

Source: Reuters, ICICIdirect.com Research

Recent Activity
Buys
Name
Kotak Mahindra (UK) Ltd
Norges Bank Investment Management (NBIM)
HDFC Asset Management Co., Ltd.
Artisan Partners Limited Partnership
Van Eck Associates Corporation
Source: Reuters, ICICIdirect.com Research

Value
+10.54M
+9.92M
+8.17M
+6.20M
+5.88M

ICICI Securities Ltd | Retail Equity Research

Shares
+8.05M
+6.47M
+6.22M
+4.74M
+3.84M

Sells
Name
William Blair Investment Management, LLC
The Boston Company Asset Management, LLC
Tata Asset Management Limited
Driehaus Capital Management, LLC
Principal Global Investors (Equity)

Value
-8.96M
-3.22M
-4.34M
-3.60M
-2.09M

Shares
-5.84M
-3.24M
-3.00M
-2.34M
-2.11M

Page 6

Financial summary
Profit and loss statement

| Crore

Cash flow statement

(Year-end March)
Total operating Income
Growth (% )
Employee Expenses
Administrative Expenses
Programing Cost
License Fees
Commission

FY15
2781.6
10.9
101.8
118.0
800.8
288.8
248.9

FY16
3059.9
10.0
122.9
0.0
855.5
217.5
-

FY17E
3265.9
6.7
142.5
126.8
971.0
236.7
-

FY18E
3832.4
17.3
157.9
203.0
1118.6
275.8
-

Other Expenses
Total Operating Expenditure

490.3
2048.5

839.2
2035.0

651.5
2128.5

712.9
2468.3

Others
CF from operating activities
(Inc)/dec in Investments
(Inc)/dec in Fixed Assets

EBITDA

733.1

1024.9

1137.4

1364.1

Others

Growth (% )
Depreciation
Interest
Other Income
PBT
Exceptional Items
Prior Period Items
Total Tax
PAT
Growth (% )
EPS (|)

NM
613.8
175.4
63.5
7.4
0.0
0.0
4.2
3.1
NM
0.0

39.8
590.7
208.7
64.0
289.5
0.0
0.0
-402.9
692.4
NM
6.5

11.0
636.4
194.8
56.9
363.1
0.0
0.0
121.3
241.9
-65.1
2.3

19.9
735.5
115.8
60.0
572.8
0.0
0.0
189.0
383.8
58.7
3.6

(Year-end March)
Profit af ter Tax
Add: Depreciation
Add: Interest Paid
(Inc)/dec in Current Assets
Inc/(dec) in CL and P rovisions

CF from investing activities

Issue/(Buy back) of Equity
Inc/(dec) in loan funds
Dividend paid & dividend tax
Interest Paid
Others
CF from financing activities
Net Cash flow
Opening Cash
Closing Cash

| Crore
FY15
3.1
613.8
208.7
-136.9
396.0

FY16E
692.4
590.7
194.8
60.6
361.3

FY17E
241.9
636.4
115.8
-27.8
163.3

FY18E
383.8
735.5
0.0
-85.2
434.8

(33.3)
1,051.5
0.0
-785.2

14.0
1,913.7
-32.0
-1,059.7

78.9
1,208.5
-50.0
-900.0

115.8
1,584.7
-300.0
-800.0

-75.4

-376.8

0.0

0.0

-860.6
0.1
74.4
0.0
208.7
-388.1
-105.0
86.0
342.6
428.6

-1,468.6
0.0
-327.5
0.0
194.8
-401.9
-534.6
-89.4
428.6
339.2

-950.0
0.0
-300.0
0.0
115.8
-312.2
-496.4
-237.9
339.2
101.3

-1,100.0
0.0
-350.0
0.0
0.0
-115.8
-465.8
18.9
101.3
120.2

FY15

FY16

FY17E

FY18E

0.0
5.8
-2.9
0.0

6.5
12.0
3.6
0.0

2.3
8.2
5.8
0.0

3.6
10.5
9.4
0.0

4.0

3.2

1.0

1.1

26.4
4.3

33.6
14.2

34.9
15.4

35.6
16.4

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

Balance sheet

| Crore

Key ratios

(Year-end March)
Liabilities
Equity Capital
Reserve and Surplus
Total Shareholders funds
Total Debt

FY15

FY16E

FY17E

FY18E

106.6
-419.9
-313.4
1,483.9

106.6
274.1
380.7
1,156.4

106.6
514.3
620.9
856.4

106.6
898.1
1,004.7
506.4

(Year-end March)
Per share data (|)
EPS
Cash EPS
BV
DP S

Other Non Current Liabilities

Total Liabilities

18.3
1,188.8

63.5
1,600.6

63.5
1,540.8

63.5
1,574.6

Cash Per Share

Operating Ratios (%)
EBITDA Margin
PBT / Total Operating income

Assets
Gross Block

4,809.5

5,716.4

6,616.4

7,416.4

Less: Acc Depreciation

Net Block
Capital WIP
Total Fixed Assets
Net Intangible Assets
Investments
Inventory
Debtors
Loans and Advances
Other Current Assets
Cash
Total Current Assets
Creditors
Provisions
Total Current Liabilities
Net Current Assets
Other Non Current Assets
Profit & Loss (Negative)
Application of Funds

3,355.6
1,453.9
497.2
1,951.0
200.0
9.9
63.7
474.8
21.6
428.6
998.5
903.8
1,073.7
1,977.5
-979.0
16.7
0.0
1,188.8

3,946.3
1,770.1
650.0
2,420.1
232.0
12.6
72.5
400.1
24.3
339.2
848.5
1,106.4
1,232.4
2,338.8
-1,490.3
438.7
0.0
1,600.6

4,582.7
2,033.6
650.0
2,683.6
282.0
13.4
69.8
428.0
26.0
101.3
638.5
1,183.6
1,318.4
2,502.1
-1,863.6
438.7
0.0
1,540.8

5,318.2
2,098.1
650.0
2,748.1
582.0
15.8
73.7
502.3
30.5
120.2
742.5
1,389.3
1,547.5
2,936.8
-2,194.3
438.7
0.0
1,574.6

PAT Margin
Inventory days
Debtor days
Creditor days
Return Ratios (%)
RoE
RoCE
RoIC
Valuation Ratios (x)
P/E
EV / EBITDA
EV / Net Sales
Market Cap / Sales
Price to Book Value
Solvency Ratios
Debt/EBITDA
Debt / Equity
Current Ratio
Quick Ratio

0.1

22.7

7.4

10.0

1.3
8.4
16.7

1.5
8.7
27.5

1.5
7.8
27.5

1.5
7.0
27.5

NM
NM
NM

181.9
31.1
479.1

39.0
36.2
229.0

38.2
43.7
751.7

NM
15.1
4.0
0.0
0.0

NM
10.5
3.5
0.0
0.0

41.4
9.3
3.3
0.0
0.0

26.1
7.4
2.6
0.0
0.0

2.0
-4.7
0.3
0.3

1.1
3.0
0.2
0.2

0.8
1.4
0.2
0.2

0.4
0.5
0.2
0.2

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 7

ICICIdirect.com coverage universe (Media)

CMP
M Cap
EPS (|)
P/E (x)
EV/EBITDA (x)
RoCE (%)
RoE (%)
(|)
TP(|) Rating
(| Cr) FY16E FY17E FY18E FY16E FY17E FY18E FY16E FY17E FY18E FY16E FY17E FY18E FY16E FY17E FY18E
Sector / Company
405
455 Buy
7,441 16.1
21.8 25.2 25.1
18.6 16.1 14.0 10.1
8.7 29.9
32.6
32.4 22.0
24.1
23.8
DB Corp (DBCORP)
94
87 Hold 10,009
6.5
2.3
3.6 14.5
41.4 26.1 10.5
9.3
7.4 31.1
36.2
43.7 181.9 38.951 38.198
DISH TV (DISHTV)
718
800 Buy
3,422 21.0
18.5 23.6 34.2
38.8 30.4 22.0 19.5 15.2 14.5
14.3
17.4 13.0
10.4
11.7
ENIL (ENTNET)
232
225 Hold
2,166 22.9
21.4 28.2 10.1
10.8
8.2
6.8
7.3
5.9 14.0
12.9
14.9 12.1
10.7
12.3
Eros (EROINT)
32
28 Sell
2,620 -2.0
-1.1
-1.0
NM
NM
NM 10.3
8.9
8.3
1.1
3.6
3.9 NM
NM
NM
Hathway Cables (HATCAB)
84
86 Hold
1,953
7.2
7.5
8.5 11.6
11.2
9.9
7.3
4.6
3.7 10.7
11.8
13.0
8.2
7.8
8.2
HT Media (HTMED)
243
260 Buy
2,232
8.4
9.3 10.9 28.8
26.0 22.4 12.7 10.4
8.7 11.1
13.0
14.6 10.9
10.2
10.6
Inox Leisure (INOX)
205 Buy
5,917 13.6
12.8 15.0 13.3
14.2 12.1 10.3
8.7
6.9 23.9 25.239 27.108 22.5
22.4
22.0
Jagran
Prakashan 181
1,143 1,010 Buy
5,335 25.4
21.0 27.7 44.9
54.4 41.3 16.9 14.9 12.3 15.6
13.7
16.4 14.3
10.2
11.9
PVR (PVRLIM)
447
385 Hold 17,623 23.2
27.8 32.6 19.3
16.1 13.7
9.2
8.0
6.8 36.1
40.3
43.4 24.9
28.0
30.1
Sun TV (SUNTV)
303
363 Buy
1,808 15.8
20.4 25.9 19.2
14.9 11.7 11.3
8.5
6.3 27.6
29.2
30.9 17.7
19.3
20.4
TV Today (TVTNET)
484
545 Buy 46,527 10.7
13.1 17.0 45.3
37.1 28.5 29.7 23.7 18.8 25.9
26.5
28.2 16.8
17.0
18.7
ZEE Ent. (ZEETEL)

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 8

RATING RATIONALE

ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns

ratings to its stocks according to their notional target price vs. current market price and then categorises them
as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional
target price is defined as the analysts' valuation for a stock.
Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction;
Buy: >10%/15% for large caps/midcaps, respectively;
Hold: Up to +/-10%;
Sell: -10% or more;

Pankaj Pandey

Head Research

pankaj.pandey@icicisecurities.com

ICICIdirect.com Research Desk,

ICICI Securities Limited,
1st Floor, Akruti Trade Centre,
Road No 7, MIDC,
Andheri (East)
Mumbai 400 093
research@icicidirect.com

ICICI Securities Ltd | Retail Equity Research

Page 9

ANALYST CERTIFICATION
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reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this
report.

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ICICI Securities Ltd | Retail Equity Research

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