When Will Dish TV India Limited (NSE:DISHTV) Breakeven?

We feel now is a pretty good time to analyse Dish TV India Limited's (NSE:DISHTV) business as it appears the company may be on the cusp of a considerable accomplishment. Dish TV India Limited provides direct to home and teleport services in India and internationally. With the latest financial year loss of ₹17b and a trailing-twelve-month loss of ₹17b, the ₹29b market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Dish TV India's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Dish TV India

According to some industry analysts covering Dish TV India, breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of ₹1.3b in 2025. The company is therefore projected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 115%, which signals high confidence from analysts. 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, but, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Dish TV India currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

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 relevant aspects 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.