Thakur
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In a chat with ET Now, Prakash Diwan, Director,
Altamount Capital Management shares his views on
DTH companies. Excerpts:
ET Now: Coming to the media companies,
particularly the DTH and the cable companies,
Videocon had announced today the listing of their
business. There is an expectation that Tata Sky may
do so in the next 12 months. Will this be a good
technical trigger for stocks like Dish, Hathway, Den
Networks and may be Siti Cable.
Prakash Diwan: Videocon is talking about a Rs 700
crore listing, which is really not very significant in
terms of scale that it could obtain. Of course it is
one of the smallest players in the segment also, but
what is going to be interesting is the kind of
discipline that finally we have seen in the third
round and the fourth round among most of these
cable operators and companies.
It is something that is really going to have a lot
more impact on their margins rather than the top
line growth. So my sense is that you will probably
see a major shift in the profitability levels that we
have been expecting from these companies in the
next two to three quarters and that could probably
be a re-rating trigger.
Dish TV at current levels has consolidated well
enough, we have seen a fair amount of distribution
between at Rs 45 to Rs 60-62 zone and of course it
has gone higher and come back. There would be
enough takers for the next leap from Rs 62 levels to
may be about Rs 85-89. That is what some of the
reports have also started talking about and I would
agree with the kind of re-rating that this entire
segment would attract for itself. Expected profitability levels of DTH companies to provide re-rating trigger: Prakash Diwan - The Economic Times on Mobile
Altamount Capital Management shares his views on
DTH companies. Excerpts:
ET Now: Coming to the media companies,
particularly the DTH and the cable companies,
Videocon had announced today the listing of their
business. There is an expectation that Tata Sky may
do so in the next 12 months. Will this be a good
technical trigger for stocks like Dish, Hathway, Den
Networks and may be Siti Cable.
Prakash Diwan: Videocon is talking about a Rs 700
crore listing, which is really not very significant in
terms of scale that it could obtain. Of course it is
one of the smallest players in the segment also, but
what is going to be interesting is the kind of
discipline that finally we have seen in the third
round and the fourth round among most of these
cable operators and companies.
It is something that is really going to have a lot
more impact on their margins rather than the top
line growth. So my sense is that you will probably
see a major shift in the profitability levels that we
have been expecting from these companies in the
next two to three quarters and that could probably
be a re-rating trigger.
Dish TV at current levels has consolidated well
enough, we have seen a fair amount of distribution
between at Rs 45 to Rs 60-62 zone and of course it
has gone higher and come back. There would be
enough takers for the next leap from Rs 62 levels to
may be about Rs 85-89. That is what some of the
reports have also started talking about and I would
agree with the kind of re-rating that this entire
segment would attract for itself. Expected profitability levels of DTH companies to provide re-rating trigger: Prakash Diwan - The Economic Times on Mobile
