Shares of Dish TV plunged nearly 10 per cent in two days to Tuesday, after more than doubling from June low, leading to stock exchanges seeking clarification from the company regarding the recent wild swings in the price movement.
On Tuesday, the scrip fell 3.5 per cent to hit a low of Rs 19.30 on BSE, taking its two-day fall to 9.6 per cent. The stock had risen 109 per cent from a June low of Rs 10.23 to Rs 21.35 on Friday.
BSE has sought clarification from Dish TV India on November 28, with reference to significant movement in price, in order to ensure that investors have latest relevant information about the company and to inform the market so that the interest of the investors is safeguarded, the company said on Tuesday.
A reply from Dish TV is awaited.
Osho Krishan, Senior Analyst for Technical & Derivative Research at Angel One said Dish TV has seen a significant rally from the odd zone of Rs 15 level, which coincided with the 200 DEMA. Since then, he said, the stock has surged over 40 per cent in a couple of trading sessions.
"Considering the vertical rally, some cool-off should not be ruled out. As far as levels are concerned, the support seems to shift upwards near the Rs 17.60-18 zone while the sacrosanct support lies around Rs 15-odd levels. On the higher end, until the stock breaches the sturdy resistance of Rs 22 in a decisive manner, it is expected to hover in the mentioned range," Osho said.
For the September quarter, the company reported a 37.66 per cent YoY drop in net profit at Rs 22.08 crore compared with Rs 35.42 crore in the same quarter last year. Sales for the quarter fell 16.97 per cent YoY to Rs 596.31 crore from Rs 718.15 crore in the year-ago quarter.
Regional linear channels, notwithstanding the influx of streaming services, have been holding ground unlike Hindi entertainment and movie channels that have been facing some competition from internet-based platforms as personal viewing content gains an edge over family viewing in the absence of a uniform content code, the company said recently.
Group CEO, Anil Dua on November 14 said: “The viewers seem to be going for content that is relevant to them, it could be on television, or on OTT, there doesn’t seem to be a specific affinity or indifference to any medium so far as the offering is rightly priced and in tune with the changing times. The earlier arguments about streaming services being advertisement-free no longer hold as even mature streaming service platforms are giving a long, hard look at ad-free models. Hence, to cater to every type of video viewer out there, we have widened our offering to include popular OTT content in the form of pre-designed bouquets.”
"Starting next quarter, OTT fans would be able to subscribe to OTT bundles at special prices from Dish TV India Limited. The packages would be available for both, in-house and external subscribers, and should create an alternate revenue stream in addition to increasing customer stickiness," Dua said on November 14.
Seasoned investors Mukul Mahavir Agrawal and Ashish Dhawan held 1.36 per cent and 1.57 per cent, respectively, in the company as of September 30.
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