India’s cable and DTH operators have reacted furiously to the news that India’s finance minister has levied a 5 per cent extra import tax on set-top boxes – raising the overall tax to 10 per cent. They are complaining that the tax hike could not have come at a worse time. Almost all STBs are imported, at the rate of some 1 million boxes per month, and the immediate demand to wrap India’s Phase 2 digitisation plan sees a total of some 15-16 million boxes needed.
Tater told CNBC-TV18, “I would recommend investor to switch from Dish TV to Siti Cable Network. Currently Siti Cable price is around Rs 22 where we have a target of Rs 30 over next six-eight months. Now taking a fundamental call on Dish TV at a revenue of around Rs 2000 crore with Rs 8000 crore of market cap, it is better to take a slightly higher risk and switch to something like Siti Cable at current levels. We have been maintaining negative view on Dish TV around Rs 85-90 mark and if you take a technical snapshot the stock is actually range bound between Rs 60 to Rs 90. Every year the stock tanks to Rs 60 and then goes back to Rs 85 zone. Thus from that angle we feel at current levels from market cap to sales perspective from the same parent group one should switch for next three-four months to Siti Cable where one will be able to make at least 20 percent from current levels.”
As India hurtles towards inevitable digitisation, the intricacies of broadcasting are becoming ever more apparent. The CASBAA India Forum 2013, on March 7 in New Delhi, will bring into focus the disparate voices of various television industry stakeholders each of who have an interest in a thriving India.
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