RESULT UPDATE
DISH TV INDIA In-line quarter; merger benefits to accrue
India Equity Research| Media
Dish TV’s (Dish) Q2FY18 sales and EBITDA decline of 4% and 18.7% YoY EDELWEISS 4D RATINGS
came in line with our expectations. Key highlights were: (i) 2% QoQ Absolute Rating BUY increase in subscription revenues, while ARPU remained flat at INR149; Rating Relative to Sector Performer (ii) Net additions were flat QoQ at 0.188mn; and iii) EBITDA margin Risk Rating Relative to Sector Medium improved 160bps QoQ to 28.9% (Airtel DTH’s EBITDA margin improved Sector Relative to Market Overweight 200bps YoY). Dish plans to enhance ARPUs led by the shift to a’ la carte
packs and HD hybrid boxes. Also, the merger with Videocon D2H is MARKET DATA (R: DSTV.BO, B: DITV IN) expected to fructify shortly, pending MIB’s approval. Management feels CMP : INR 81 that the threat from Freedish is reducing and hence propel Dish’s Target Price : INR 103 subscriber additions going forward. Potent catalysts: 1) We perceive cost 52-week range (INR) : 111 / 68 synergies from the Videocon D2H merger; and 2) Threat from Freedish is Share in issue (mn) : 1,066.0 waning. However, likely JIO entry remains the key risk. Maintain ‘BUY’. M cap (INR bn/USD mn) : 86 / 1,333 Avg. Daily Vol.BSE/NSE(‘000) : 4,931.5 ARPU remains flat; Freedish threat reduces
ARPU remained flat QoQ at INR149, but may improve going ahead following launch of SHARE HOLDING PATTERN (%)
a’ la carte and new hybrid HD boxes. Dish added 0.188mn susbscribers during the Current Q1FY18 Q4FY17 quarter versus 0.21mn each for Videocon and Bharti Airtel. The company maintained Promoters * 64.4 64.4 64.4 its guidance of reaping synergistic benefits to the tune of INR5,100mn from the MF's, FI's & BK’s 7.8 8.2 8.2 merger in FY19. Also, the company believes that the threat from Freedish is slowly FII's 18.8 17.3 16.8 fading as 10 free-to-air channels have decided to opt out of Freedish and another 5 Others 8.9 10.1 10.6 channels are expected to opt out in February 2018. This is because at current carriage * Promoters pledged shares : NIL (% of share in issue) fee levels, the channels do not find it viable to be on the platform. .
PRICE PERFORMANCE (%) Q2FY18 conference call: Key takeaways EW Media Stock Nifty Dish maintained its guidance for 7-8% YoY revenue growth in FY18.. ARPU in Q3FY18 is Index estimated to increase by INR2 as full benefits of GST accrue in the next 2 quarters. 1 month 4.7 (3.2) 3.1 The company added 0.3mn gross HD subscribers in Q2FY18.Dish’s content cost, as a % 3 months (0.3) 1.7 7.8 of revenue, stands at 31%, whereas for Videcon D2H it is higher at 36-37%. HD 12 months (6.2) 24.5 27.7
subscribers in Q2FY18 jumped 30% YoY compared to 22% jump in Q1FY18. As on
September end, gross debt stood at INR12,100mn and net debt stood at INR7,750mn
Outlook and valuations: Positive; maintain ‘BUY’ With the concerns surrounding Freedish fading, better ARPU’s in the offing due to TRAI Abneesh Roy tariff order and on Videocon d2h merger synergies we maintain ‘BUY/SP’ with TP of +91 22 6620 3141 INR103 (8x FY19E EV/EBITDA). At CMP, the stock is trading at 8.2x FY18E and 6.5x [email protected] FY19E EV/EBITDA. Rajiv Berlia
Financials (INR mn) +91 22 6623 3377 Year to March Q2FY18 Q2FY17 % change Q1FY18 % change FY17 FY18E FY19E [email protected]
Revenues 7,486 7,793 (3.9) 7,389 1.3 30,144 32,414 74,363 Alok Shah EBITDA 2,161 2,657 (18.7) 2,012 7.4 9,787 10,737 27,419 +91 22 6620 3040 Adjusted Profit (179) 690 NM (139) NM 1,150 1,082 5,301 [email protected]
Adj. diluted EPS (0.2) 0.6 (0.1) 1.1 1.0 2.8 EV/EBITDA (x) 9.1 8.2 6.5 December 5, 2017 Edelweiss Research is also available on www.edelresearch.com, Bloomberg EDEL
Table 1: Trends at a glance Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 ARPU (INR) 172 174 165 162 152 135 148 149 Subscription revenue 6,700 6,981 7,282 7,288 6,921 6,205 6,917 7,049 Gross subscriber (mn) 21.0 21.8 22.5 23.1 23.7 24.3 25.0 25.5 Net subscriber (mn) 13.9 14.5 14.9 15.1 15.3 15.5 15.7 15.9 Net subscriber addition (mn) 0.32 0.51 0.40 0.26 0.20 0.16 0.19 0.19 Profit before tax 685 799 550 574 429 (291) (302) (272) Free cash flow 1,296 1,047 627 791 490 160 108 - Monthly churn rate (%) 0.70 0.70 0.70 0.80 0.90 0.90 1.00 0.80 Gross debt 10,000 12,000 13,500 12,750 12,000 11,400 NA 9,114 Net debt 5,610 6,350 7,000 6,250 6,050 6,850 6,900 7,189 Growth rate Revenue 11.8 9.5 5.7 3.6 (3.0) (11.4) (5.1) (3.9) % of revenue EBITDA margin 34.4 32.6 33.5 34.1 33.4 26.9 27.2 28.9
Table 2: Comparison between Dish TV, Videocon d2h and Airtel dth Dish TV Videocon d2h Airtel dth INR mn Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Total revenues 7,793 7,480 7,086 7,389 7,486 7,762 7,774 7,549 7,726 8,346 8,545 8,735 8,657 8,974 9,369 Subs revenue 7,288 6,921 6,205 6,917 7,049 7,107 7,110 6,886 7,091 7,701 Lease rentals 40 30 20 20 12 - - - - - Ad revenues 120 120 160 110 120 82 71 - - - Carriage revenue 250 270 300 250 220 NA 277 - - - Prog cost 2,389 2,201 2,364 - - 3,004 3,078 3,208 3,245 3,313 EBITDA 2,657 2,495 1,906 2,012 2,161 2,604 2,651 2,319 2,485 2,805 3,030 3,026 3,153 3,300 3,517 % of revenues EBITDA margin 34.09 33.36 26.90 27.23 28.87 33.55 34.11 30.72 32.17 33.61 35.46 34.64 36.42 36.77 37.54 Key metrics ARPU number 162 152 135 148 149 209 205 196 198 212 232 232 228 228 233 Gross subscribers 23.11 23.73 24.31 24.97 25.54 16.93 17.51 17.98 18.61 19.06 Net subscribers 15.11 15.32 15.48 15.70 15.90 12.52 12.77 12.91 13.04 13.25 12.41 12.59 12.82 13.31 13.52 Prog costs/ rev (%) 30.66 29.43 33.36 - - 38.70 39.60 42.50 42.00 39.70 Monthly churn 0.80 0.90 0.90 1.00 0.80 0.95 0.87 0.87 1.27 0.62 1.20 1.30 1.20 0.90 1.40 YoY growth Revenues 3.6 (3.0) (11.4) (5.1) (3.9) 12.5 6.3 (2.1) 1.2 7.5 20.9 17.7 10.4 7.2 9.6 EBITDA 4.9 (6.0) (26.9) (22.9) (18.7) 38.3 34.1 7.3 (0.5) 7.7 29.3 22.3 14.7 9.6 16.1 Source: Company, Edelweiss research
2 Edelweiss Securities Limited Dish TV India
Q2FY18 conference call: Key takeaways
Dish TV Q2 FY18: Conference call takeaways FY18 guidance • Dish TV guided for 7-8% YoY revenue growth. • 1-2% YoY ARPU spurt. • The company has stuck to its guidance of 1mn subscriber addition in FY18.
Revenue • Dish TV reported INR7,049mn subscription revenue (excluding entertainment tax), INR220mn bandwidth revenue, INR120mn advertisement revenue, INR55mn teleport revenue and INR30mn other operating revenue.
• The company added 188,000 net subscribers in Q2FY18 with a total of 15.9mn subscribers.
• Subscriber acquisition cost stood at INR1,525.
ARPU • Dish TV’s ARPU was flat QoQ at INR149. • The company has taken a number of initiatives such as introduction of a’ la carte pack and hybrid STB which may boost ARPU going ahead. • ARPU in Q3FY18 is estimated to increase by INR2 as the full benefit of GST will accrue in the next 2 quarters. • The company added 0.3mn gross HD subscribers in Q2FY18. • It has introduced introductory small HD packs. • Further, the company started free per view for subscribers who can watch HD channels for 10minutes. • Dish TV currently has 2.5mn HD subscribers.
Content and other cost • Content cost stood at the same level as previous quarters. • Dish TV’s content cost as a % of revenue stands at 31%, whereas for Videcon D2H it is higher at 36-37%. • It incurred INR600mn in transponder and call centre charges. • EBITDA margin recovered due to improved customer sentiment.
Prasar Bharti’s Freedish • 10 Free-to-Air channels have decided to opt out of Freedish and another 5 channels are expected to opt out in February 2018 as at current pricing of carriage fee the channels did not find it viable. • Though Dish TV has lost a lot of customers to Freedish, Prasar Bharti is losing ad revenue to private broadcasters (revenue dipped 30-40%). Hence, it has removed some of the channels. • Management believes the Freedish threat is gradually ebbing.
3 Edelweiss Securities Limited Media
A’ la carte offering • The new offering is based on TRAI’s tariff order which is being contested in the high court. • 600,000 have subscribed to the a’ la carte pack (does not include sports).
Hybrid offering • New STB has multiple conditional accesses built in the STB.
• Dish TV has already launched 800,000 STBs in the market, but full launch is scheduled for April 2018.
Merger with Videocon D2H • All approvals have been taken, apart from the Ministry of Information Broacasting for the merger with Videocon D2H.
• The company expects synergy benefits of INR1,800mn in FY18 and INR5,100mn in FY19 aided by unified content contract.
Other key takeaways • HD subscribers in Q2FY18 jumped 30% compared to 22% in Q1FY18. • The ratio of H1 to H2 revenues stands at 45:55.
• Dish TV has less than 3mn subscribers on the MPEG-2 format. The company has offered these subscribers an upgrade to MPEG 4. It anticipates all subscribers to move to the MPEG 4 format in the next 18 months.
• Trade receivables increased significantly due to change in accounting standard and due to large proportion of tariff revenue.
• Dish TV’s gross debt stood at INR12,100mn and net debt at INR7,750mn as on September end.
4 Edelweiss Securities Limited Dish TV India
Outlook and valuations: Positive; maintain ‘BUY’ Healthy subscriber addition in the past few quarters, higher share of HD & Zing subscribers and rising free cash flow continue to bolster our confidence. We believe, Dish TV is well placed to gain from Phase 3 and 4 digitisation due to last mile connectivity and funding issues of MSOs and increase in ARPUs (due to differential pricing in Phase 1 and 2 markets). The company is providing for 7.0-7.5% licence fee (versus 10% in the past).
Phase 4 digitisation is likely to exert some pressure on ARPUs, but Dish TV expects HD additions to slightly lower the impact. Videocon d2h merger is on track and will lead to synergy benefits in FY19. We are factoring in Videocon d2h merger in our FY19E numbers. We expect Videocon d2h’s net addition of 1.1mn and ARPU increase of 4% YoY in FY18. With the concerns surrounding Freedish fading, better ARPU’s in the offing due to TRAI tariff order and on Videocon d2h merger synergies we maintain ‘BUY/SP’ with TP of INR103 (8x FY19E EV/EBITDA). At CMP, the stock is trading at 8.2x FY18E and 6.5x FY19E EV/EBITDA.
Chart 1: Dish TV – EV/EBITDA chart 250,000 12x
200,000 9x 150,000 6x 100,000 (INR mn) (INR 3x 50,000
0 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
Source: Edelweiss research
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Financial snapshot (INR mn) Year to March Q2FY18 Q2FY17 % change Q1FY18 % change YTD18 FY18E FY19E Net revenues 7,486 7,793 (3.9) 7,389 1.3 14,875 32,414 74,363 Staff costs 366 367 (0.2) 388 (5.7) 755 1,555 3,369 Other operating expenses 4,959 4,769 4.0 4,988 (0.6) 9,947 20,122 43,575 Total expenditure 5,325 5,136 3.7 5,377 (1.0) 10,702 21,677 46,944 EBITDA 2,161 2,657 (18.7) 2,012 7.4 4,173 10,737 27,419 Depreciation 1,899 1,683 12.8 1,822 4.2 3,721 7,350 17,147 EBIT 262 974 (73.1) 190 38.0 452 3,387 10,272 Other income 77 174 (55.7) 98 (21.4) 175 578 1,029 Interest 611 574 6.4 590 3.6 1,201 2,300 5,200 Add: Exceptional items Profit before tax (272) 574 NA (302) NA (574) 1,665 6,100 Provision for taxes (93) (116) NA (162) NA (256) 583 799 Reported net profit (179) 690 NA (139) NA (318) 1,082 5,301 Adjusted Profit (179) 690 NA (139) NA (318) 1,082 5,301 Diluted shares (mn) 1,066 1,066 1,066 2,132 1,065 1,923 Adjusted Diluted EPS (0.2) 0.6 NA (0.1) NA (0.3) 1.0 2.8 EV/EBITDA (x) - - - - 8.2 6.5 Employee cost 4.9 4.7 5.3 10.1 4.8 4.5 Other operating expenses 13.9 14.0 16.6 30.4 15.2 12.1 EBITDA 28.9 34.1 27.2 56.1 33.1 36.9 Reported net profit 25.4 21.6 24.7 50.0 22.7 23.1
6 Edelweiss Securities Limited Dish TV India
Company Description Dish TV is India’s largest direct-to-home (DTH) company and part of the country’s biggest media conglomerate the ZEE Group. As of Sept 30, 2017, net subscriber base was at 15.9mn. Dish TV has on its platform more than 470 channels and services. It uses the NSS-6 satellite platform which is unique in the Indian subcontinent owing to its automated power control and contoured beam which makes it suitable for use in ITU K and N rain zones ideally suited for India’s tropical climate. The company has a vast distribution network of more than 1,685 distributors and 201,300 dealers spanning 8,929 towns in the country. It has six 24*7 call centres catering to 11 different languages to take care of subscriber requirements at any point of time.
Investment Theme Delay in tariff agreements between MSOs and LCOs may result in DTH players like Dish TV getting incremental subscriber additions during the digitisation process. Though Phase 1 and Phase 2 remain important, key potential for it lies in Phase 3 and Phase 4. Innovations like launch of Zing brand for regional markets, likely GST and reduction in debt levels further bolsters our confidence.
Key Risks Any adverse judgment in the ongoing DTH licence fee case in TDSAT
Slowdown in subscriber additions.
Competition from other DTH service providers.
Limited ARPU growth.
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Financial Statements Key Assumptions Income statement (INR mn) Year to March FY16 FY17 FY18E FY19E Year to March FY16 FY17 FY18E FY19E Macro Net revenue 30,599 30,144 32,414 74,363 GDP(Y-o-Y %) 7.2 6.5 7.1 7.7 Prog/content costs 8,555 9,177 10,094 24,356 Inflation (Avg) 4.9 4.8 5.0 5.2 License Fees 2,175 2,175 2,393 4,835 Repo rate (exit rate) 6.8 6.3 6.3 6.3 Other operating expenses 4,051 2,988 2,701 5,363 USD/INR (Avg) 65.0 67.5 67.0 67.0 Employee costs 1,229 1,440 1,555 3,369 Company Total SG&A expenses 4,342 4,578 4,935 9,022 Sales assumptions - - - 1 Total operating expenses 20,351 20,357 21,677 46,944 Subscriber adds (mn) 1.6 1.0 1.0 1.0 EBITDA 10,249 9,787 10,737 27,419 ARPU (INR) 172 154 157 160 Depreciation 5,907 6,631 7,350 17,147 Sub rev (% of total rev) 92.4 91.9 93.2 93.5 EBIT 4,342 3,156 3,387 10,272 Cost assumptions Add: Other income 640.4 475.00 577.99 1,028.76 Cont cost (% of sub rev) 30.3 33.1 33.4 33.6 Less: Interest Expense 2,087 2,239 2,300 5,200 Sell & dis exp(% of rev) 9.3 10.3 10.5 10.5 Add: Exceptional items - (57) - - License Fees (% of rev.) 7.1 7.2 7.4 7.5 Profit Before Tax 2,895 1,335 1,665 6,100 Entertainment tax (% of rev.) 5.4 - - - Less: Provision for Tax (4,029) 242 583 799 Personnel cost(% of rev) 4.0 4.8 4.8 4.8 Reported Profit 6,924 1,093 1,082 5,301 Adm & othr exp(% of rev) 4.9 4.9 4.7 4.6 Exceptional Items - (57) - - Tran Lease exp(% of rev) 5.3 6.1 6.3 6.5 Adjusted Profit 6,924 1,150 1,082 5,301 Financial assumptions Shares o /s (mn) 1,065 1,065 1,065 1,923 Tax rate (%) (139.2) 17.4 35.0 35.0 Adjusted Basic EPS 6.5 1.1 1.0 2.8 Capex (INR mn) 10,596 9,500 8,836 8,494 Diluted shares o/s (mn) 1,065 1,065 1,065 1,923 Debtor days 8 10 10 10 Adjusted Diluted EPS 6.5 1.1 1.0 2.8 Inventory days 3 3 3 3 Adjusted Cash EPS 12.0 7.3 7.9 11.7 Payable days 44 51 51 51 Cash conversion cycle (33) (38) (38) (38) Common size metrics Dep. (% gross block) 19.3 22.0 22.7 22.2 Year to March FY16 FY17 FY18E FY19E Pay channel cost 28.0 30.4 31.1 32.8 Other operational exp 7.1 7.2 7.4 6.5 Staff costs 4.0 4.8 4.8 4.5 EBITDA margins 33.5 32.5 33.1 36.9 Net Profit margins 22.6 3.8 3.3 7.1
Growth ratios (%) Year to March FY16 FY17 FY18E FY19E Revenues 13.8 (1.5) 7.5 129.4 EBITDA 39.8 (4.5) 9.7 155.4
8 Edelweiss Securities Limited Dish TV India
Balance sheet (INR mn) Cash flow metrics As on 31st March FY16 FY17 FY18E FY19E Year to March FY16 FY17 FY18E FY19E Share capital 1,066 1,066 1,066 1,923 Operating cash flow 11,323 8,204 12,159 24,848 Reserves & Surplus 2,741 3,840 4,922 17,879 Investing cash flow (8,091) (6,235) (8,258) (17,269) Shareholders' funds 3,807 4,906 5,988 19,801 Financing cash flow (3,519) (1,145) (2,300) (5,200) Short term borrowings 777 - - 20,344 Net cash Flow (286) 824 1,601 2,379 Long term borrowings 11,535 5,834 5,834 8,435 Capex (10,594) (9,507) (8,836) (19,934) Total Borrowings 12,313 5,834 5,834 28,779 Long Term Liabilities 808 1,231 1,231 1,351 Profitability and efficiency ratios Def. Tax Liability (net) (4,360) (5,100) (5,100) (13,047) Year to March FY16 FY17 FY18E FY19E Sources of funds 12,568 6,871 7,953 36,885 ROAE (%) 2,056.7 26.4 19.9 41.1 Gross Block 56,683 64,331 73,168 154,451 ROACE (%) 35.8 27.0 35.1 37.4 Net Block 18,020 19,080 20,599 50,247 Inventory Days 3 3 3 3 Capital work in progress 6,100 7,868 7,868 7,868 Debtors Days 8 8 8 8 Intangible Assets 81 123 91 551 Payable Days 44 44 44 44 Total Fixed Assets 24,201 27,071 28,557 58,666 Cash Conversion Cycle (33) (33) (33) (33) Non current investments 1,500 1,500 1,500 4,307 Current Ratio 0.4 0.3 0.3 0.4 Cash and Equivalents 4,212 3,066 3,502 6,629 Gross Debt/EBITDA 1.2 0.6 0.5 1.0 Inventories 126 131 141 555 Gross Debt/Equity 3.2 1.2 1.0 1.5 Sundry Debtors 725 870 845 1,010 Adjusted Debt/Equity 3.2 1.2 1.0 1.5 Loans & Advances 4,001 4,755 4,755 4,755 Interest Coverage Ratio 2.1 1.4 1.5 2.0 Other Current Assets 271 117 117 4,749 Current Assets (ex cash) 5,121 5,873 5,857 11,069 Operating ratios Trade payable 2,298 1,711 2,535 7,408 Year to March FY16 FY17 FY18E FY19E Other Current Liab 20,168 28,928 28,928 36,378 Total Asset Turnover 2.5 3.1 4.4 3.3 Total Current Liab 22,466 30,639 31,463 43,786 Fixed Asset Turnover 1.9 1.6 1.6 2.1 Net Curr Assets-ex cash (17,345) (24,766) (25,606) (32,718) Equity Turnover 90.9 6.9 6.0 5.8 Uses of funds 12,568 6,871 7,953 36,885 BVPS (INR) 3.6 4.6 5.6 10.3 Valuation parameters Year to March FY16 FY17 FY18E FY19E
Free cash flow (INR mn) Adj. Diluted EPS (INR) 6.5 1.1 1.0 2.8 Year to March FY16 FY17 FY18E FY19E Adjusted Cash EPS (INR) 12.0 7.3 7.9 11.7 Reported Profit 6,924 1,093 1,082 5,301 P/B (x) 22.5 17.5 14.3 7.8 Add: Depreciation 5,907 6,631 7,350 17,147 EV / Sales (x) 3.1 2.9 2.7 2.4 Interest (Net of Tax) 2,087 2,239 2,300 5,200 EV / EBITDA (x) 9.2 9.0 8.2 6.5 Others (4,806) (1,599) 587 (1,029) Less: Changes in WC (1,211) 160 (840) 1,772 Operating cash flow 11,323 8,204 12,159 24,848 Less: Capex 10,594 9,507 8,836 19,934 Free Cash Flow 729 (1,304) 3,323 4,914
Peer comparison valuation Market cap Diluted P/E (X) EV / EBITDA (X) EV / Sales (X) Name (USD mn) FY18E FY19E FY18E FY19E FY18EFY19E Dish TV India 1,333 - - 8.2 6.5 2.7 2.4 DB Corp 1,006 15.8 13.7 8.7 7.4 2.6 2.3 DEN Networks 320 (28.8) (37.5) 5.6 4.8 1.1 0.9 Hathway Cable & Datacom 575 - - 18.3 12.3 3.4 3.0 Jagran Prakashan 793 13.7 12.3 7.3 6.3 2.1 1.9 PVR 921 51.2 26.8 16.8 12.0 3.1 2.6 Sun TV Network 5,248 29.6 24.9 16.8 13.8 11.6 9.9 Zee Entertainment Enterprises 8,476 38.3 30.9 24.1 20.1 7.0 6.0 Source: Edelweiss research
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Additional Data Directors Data Subhash Chandra Non-Executive Chairman Jawahar Lal Goel Managing Director Ashok Kurien Non-Executive Director Bhagwan Dass Narang Independent Director Arun Duggal Independent Director Eric Zinterhofer Independent Director Lakshmi Chand Independent Director Mintoo Bhandari Non-Executive Nominee Director Utsal Baijal Alt.Director to Mintoo Bhandari Dr. Rashmi Aggarwal Independent Director
Auditors - M/s B S R & Co., Gurgaon *as per last annual report
Holding – Top10 Perc. Holding Perc. Holding Direct media dist ve 42.89 Veena investments pv 8.08 Direct media solutio 7.21 Artisan partners ltd 6.69 Hdfc asset managemen 4.51 Agrani holdings maur 3.3 Artisan dev world fu 2.5 Reliance capital tru 1.68 Manaaska fash llp 1.59 Manaaska fashions ll 1.59
*in last one year
Bulk Deals Data Acquired / Seller B/S Qty Traded Price 30 Mar 2017 Macquarie Unit Trust Series- Macquarie Asia New Stars Fund Sell 6053364 106.77 22 Mar 2017 L N Minerals Llp Sell 7469759 106.55 22 Mar 2017 Goel Laxmi Narain Buy 7469759 106.55 13 Feb 2017 Direct Media Solutions Pvt Ltd Sell 80000000 87.70 13 Feb 2017 Veena Investments Pvt Ltd Buy 80000000 87.70
*in last one year
Insider Trades Reporting Data Acquired / Seller B/S Qty Traded 31 Mar 2017 Direct Media Solutions LLP Sell 17000000.00 31 Mar 2017 Manaaska Fashions LLP Buy 17000000.00 16 Mar 2017 Direct Media Solutions Pvt. Ltd.(converted to Direct Media Solutions LLP) Sell 6094722.00 16 Mar 2017 Veena Investments Private Limited Buy 6094722.00 15 Feb 2017 Veena Investments Private Limited Buy 80000000.00
*in last one year
10 Edelweiss Securities Limited RATING & INTERPRETATION
Company Absolute Relative Relative Company Absolute Relative Relative reco reco risk reco reco Risk DB Corp BUY SO M DEN Networks HOLD SP H Dish TV India BUY SP M Hathway Cable & Datacom BUY SP M Jagran Prakashan BUY SP M PVR BUY SO M Sun TV Network BUY SO H Zee Entertainment Enterprises BUY SO M
ABSOLUTE RATING
Ratings Expected absolute returns over 12 months
Buy More than 15%
Hold Between 15% and - 5%
Reduce Less than -5%
RELATIVE RETURNS RATING
Ratings Criteria Sector Outperformer (SO) Stock return > 1.25 x Sector return
Sector Performer (SP) Stock return > 0.75 x Sector return
Stock return < 1.25 x Sector return
Sector Underperformer (SU) Stock return < 0.75 x Sector return
Sector return is market cap weighted average return for the coverage universe within the sector
RELATIVE RISK RATING
Ratings Criteria
Low (L) Bottom 1/3rd percentile in the sector
Medium (M) Middle 1/3rd percentile in the sector
High (H) Top 1/3rd percentile in the sector
Risk ratings are based on Edelweiss risk model
SECTOR RATING
Ratings Criteria Overweight (OW) Sector return > 1.25 x Nifty return
Equalweight (EW) Sector return > 0.75 x Nifty return
Sector return < 1.25 x Nifty return
Underweight (UW) Sector return < 0.75 x Nifty return
11 Edelweiss Securities Limited Media
Edelweiss Securities Limited, Edelweiss House, off C.S.T. Road, Kalina, Mumbai – 400 098. Board: (91-22) 4009 4400, Email: [email protected]
Aditya Narain
Head of Research [email protected]
Coverage group(s) of stocks by primary analyst(s): Media DB Corp, DEN Networks, Dish TV India, Hathway Cable & Datacom, Jagran Prakashan, PVR, Sun TV Network, Zee Entertainment Enterprises
Recent Research
Date Company Title Price (INR) Recos
13-Nov-17 Jagran Manoeuvers a tough quarter; 169 Buy Prakashan sanguine outlook; Result Update 10-Nov-17 DEN Robust subscription; 95 Hold Networks broadband soft; Result Update 10-Nov-17 Sun TV Ad growth back on track; 872 Buy Network Result Update
Distribution of Ratings / Market Cap Edelweiss Research Coverage Universe Rating Interpretation
Buy Hold Reduce Total Rating Expected to
Rating Distribution* 161 67 11 240 Buy appreciate more than 15% over a 12-month period * 1stocks under review Hold appreciate up to 15% over a 12-month period > 50bn Between 10bn and 50 bn < 10bn
Reduce depreciate more than 5% over a 12-month period Market Cap (INR) 156 62 11
One year price chart
125 110
95
(INR) 80
65
50 Jul-17 Jan-17 Jun-17 Oct-17 Apr-17 Feb-17 Sep-17 Dec-17 Dec-16 Aug-17 Nov-17 Mar-17 May-17 Dish TV India
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