InvestorQ : The stock price of Dish TV has shown some bounce in the last few days. Should I buy this stock since the potential for DTH television is quite good?
Rutuja Nigam made post

The stock price of Dish TV has shown some bounce in the last few days. Should I buy this stock since the potential for DTH television is quite good?

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Arti Chavan answered.
3 years ago
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While the potential for DTH is surely good, the question is whether the company can execute its plans profitably. There is also the share pledge issue, which I will come back to later. Firstly, if you look at the latest quarterly performance of the company, then the company has slipped to a loss of Rs.1316 crore in the March quarter. This comes on the back of a profit of Rs.118 crore reported n the previous year. Even its revenues from operation in the March quarter fell by nearly 10% to Rs.1398 crore as pressure from the new TRAI policy started putting pressure on revenues.

There are two things you need to look at about Dish TV. Firstly, its numbers have been really disappointing in the current quarter and that does not bode well for the company. Secondly, the company is also embroiled in the pledge shares problem where its shares have been pledged with mutual funds for raising bond funds in the books of Essel Group companies. This will be an overhang on the stock. Don’t be in a hurry to buy this stock. Let the pledged shares issue get resolved and then you can look at a decision on buying the stock.
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