Dish TV India Limited's (NSE:DISHTV) About To Shift From Loss To Profit

Dish TV India Limited (NSE:DISHTV) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Dish TV India Limited, together with its subsidiaries, provides direct to home and teleport services primarily in India. The ₹21b market-cap company posted a loss in its most recent financial year of ₹16b and a latest trailing-twelve-month loss of ₹12b shrinking the gap between loss and breakeven. As path to profitability is the topic on Dish TV India's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Dish TV India

According to the 2 industry analysts covering Dish TV India, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of ₹1.1b in 2021. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 78% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Dish TV India given that this is a high-level summary, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 38% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Dish TV India, so if you are interested in understanding the company at a deeper level, take a look at Dish TV India's company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:

1. Valuation: What is Dish TV India worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Dish TV India is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Dish TV India’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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