Dish TV stock pricing in positives currently
Dish TV stock pricing in positives currently
Investors have good reason to cheer Dish TV India Ltd’s latest results. The company had delivered good numbers in the March quarter as well. Its performance has improved on many counts for the quarter ended June.
One of the main reasons for the strong operating performance is the comparatively slower pace of growth in selling and distribution expenses. Those came in lower because of a decline in advertising expenses. According to an analyst, the June quarter margins could be the peak margins for this fiscal, but still, margins for fiscal 2013 are expected to be better on a year-on-year basis. Last fiscal’s operating margin stood at 25.5%.
Dish TV’s average revenue per user (Arpu) also came in better at ₹ 156, an improvement from ₹ 151 in the March quarter. The company was able to improve its Arpu in the June quarter on account of price hikes taken earlier. This quarter, too, the firm has taken some price hikes, which should reflect positively in the Arpu going forward.
Not surprisingly, the Dish TV stock rose by 4.6% on Thursday after the company announced its June quarter results. On the same day, the benchmark Sensex increased slightly by 0.55%.
But then, while subscriber additions have improved sequentially, investors would do well to track that in the days to come. Further, developments on the digitization front, too, are crucial.
Meanwhile, the Dish TV stock has risen by 29% from its lows in May and seems to be factoring most of the positives at the current levels.
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