Dish TV shares offer remarkable value, says Macquarie
Mumbai: Dish TV India offers remarkable value and can potentially generate a 100% return over three years, said Macquarie in a report.
Analysing financials of Dish TV and Tata Sky, Macquarie said that while the latter is ahead of Dish TV in terms of revenues. However, Dish TV is ahead of Tata Sky on margins and cash generation, it said.
"Dish TV’s EBITDA (earnings before interest, taxes, depreciation and amortisation) margins are still at least 200 bps (basis points) higher than Tata Sky due to lower employee costs and selling and distribution expenses," said Macquarie.
Macquarie said Dish TV has been faring better on net profit front compared to Tata Sky due to higher margins and lower depreciation. The accumulated losses of Tata Sky are significantly higher than Dish TV and also, Dish TV has also been faring much better than Tata Sky on cash generation over the last 2 years, it said.
The brokerage has an 'outperform' rating on Dish TV with a target price of Rs 118. On Wednesday, Dish TV ended up 0.6% at Rs 94.05 on the BSE.
Analysing financials of Dish TV and Tata Sky, Macquarie said that while the latter is ahead of Dish TV in terms of revenues. However, Dish TV is ahead of Tata Sky on margins and cash generation, it said.
"Dish TV’s EBITDA (earnings before interest, taxes, depreciation and amortisation) margins are still at least 200 bps (basis points) higher than Tata Sky due to lower employee costs and selling and distribution expenses," said Macquarie.
Macquarie said Dish TV has been faring better on net profit front compared to Tata Sky due to higher margins and lower depreciation. The accumulated losses of Tata Sky are significantly higher than Dish TV and also, Dish TV has also been faring much better than Tata Sky on cash generation over the last 2 years, it said.
The brokerage has an 'outperform' rating on Dish TV with a target price of Rs 118. On Wednesday, Dish TV ended up 0.6% at Rs 94.05 on the BSE.
