Dish TV India rose 2.73% to Rs 84.55 at 12:11 IST on BSE after a foreign brokerage retained its buy rating on the company, saying improving margins was likely to lead to a rerating of the stock.
Meanwhile, the BSE Sensex was down 10.50 points, or 0.04%, to 28,834.28.
On BSE, so far 2.40 lakh shares were traded in the counter, compared with an average volume of 5.30 lakh shares in the past one quarter.
The stock hit a high of Rs 85.30 and a low of Rs 82.65 so far during the day. The stock hit a 52-week high of Rs 88.30 on 3 March 2015. The stock hit a 52-week low of Rs 43.25 on 8 May 2014.
The stock had outperformed the market over the past one month till 9 March 2015, rising 6.88% compared with 2.19% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 27.99% as against Sensex's 3.77% rise.
The mid-cap company has an equity capital of Rs 106.55 crore. Face value per share is Re 1.
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The brokerage said that Dish TV's price hike of 3-8% across its package portfolio during last few weeks came within six months of the prior price hike; ahead of the expected April revision. While part of the accelerated price hike is driven by the on-going Cricket World cup, the same is clearly reflective of a much improved distribution industry dynamics.
According to the brokerage, a combination of broadcaster push and rising customer acceptance of premium content has forced the cable operators to finally implement differential pricing; making the average realization per user (ARPU) sustainable. Dish TV's margins are likely to improve in the medium term as its major content deals are in place for 1.5-3 years, making management confident of mid-single digit annual content cost increases. Higher uptake of premium services like HD (High Definition) and sports can be an added upside, the brokerage said, adding that improving margins could result in the company turning profitable soon.
Dish TV India reported a net loss of Rs 2.87 crore in Q3 December 2014, lower than net loss of Rs 38.25 crore in Q3 December 2013. Net sales rose 16.6% to Rs 711.22 crore in Q3 December 2014 over Q3 December 2013.
Dish TV is Asia Pacific's largest direct-to-home (DTH) company and part of one of India's biggest media conglomerate - the Zee Group.
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