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We recently met Mr. Jagdish Kumar, MD & CEO, and Mr. G Subramaniam, CFO, Hathway Cable & Datacom (Hathway). The management stated that as a result of greater clarity on the number of cable households and expansion in new areas during digitisation, the company’s universe has expanded to ~10.5mn subscribers (including multi‐TV households) from ~9mn earlier. It has seeded ~6.5mn boxes so far (mostly in Phases 1 and 2). Post TRAI’s recent diktat on the KYC process in Mumbai and Delhi, Hathway has been scurrying to meet the June 25, 2013 deadline (only ~60% complete). We expect success in KYC data and package selection to be important milestones. INR depreciation is a concern since set top box cost increases ~INR25 for every 100bps depreciation. Also, Hathway has ~USD80mn foreign debt. However, with rapid seeding of boxes, Hathway continues to execute the best amongst MSOs. Maintain ‘BUY’. Retail billing to spur realisation in Mumbai and Delhi Hathway aims to seed ~7mn set top boxes in Phases 1 and 2. Once retail billing starts from July 2013, it expects a net realisation of INR100 per subscriber. Carriage revenues from larger broadcasters have been declining; yet, Hathway expects overall carriage revenue to broadly remain flat due to more number of channels due to digitisation.

Renegotiation of content agreements to raise costs Hathway expects content costs in Phase 1 and Phase 2 to increase in the 15‐25% range over analog scenario due to renegotiation of contracts. After digitisation is completed across all phases, content costs should be ~35‐40% of subscription revenue (similar to DTH operators). Though KYC ads have just started, Hathway indicated that progress on the KYC front has been lower than expectation due to lack of push factor from LCOs.

Outlook and valuations: Positive; maintain ‘BUY’ Hathway is the best placed MSO to capitalise on the huge digitisation opportunity. Its subscription revenues are bound to increase in FY14 due to Phase 1 and partly due to Phase 2. Currently, the stock is trading at EV/EBITDA of 16.2x and 13.2x FY14E and FY15E, respectively. Maintain ‘BUY/Sector Outperformer’ with a TP of INR347.

VISIT NOTE

HATHWAY CABLE & DATACOMExpanding bandwidth

EDELWEISS 4D RATINGS

Absolute Rating BUY

Rating Relative to Sector Outperformer

Risk Rating Relative to Sector Medium

Sector Relative to Market Overweight

MARKET DATA (R: HAWY.BO, B: HATH IN)

CMP : INR 271

Target Price : INR 347

52‐week range (INR) : 306 / 169

Share in issue (mn) : 143.2

M cap (INR bn/USD mn) : 39/ 666

Avg. Daily Vol.BSE/NSE(‘000) : 244.7

SHARE HOLDING PATTERN (%)

Current Q3FY13 Q2FY13

Promoters *

49.5 49.5 49.6

MF's, FI's & BK’s 21.2 19.2 19.5

FII's 23.4 23.9 23.7

Others 6.0 7.4 7.2 * Promoters pledged shares (% of share in issue)

: NIL

PRICE PERFORMANCE (%)

Stock Nifty

EW Media Index

1 month (4.9) (5.0) 4.8

3 months 5.7 (2.6) 4.3

12 months 59.7 14.5 63.1

Abneesh Roy +91 22 6620 3141 [email protected] Alankar Garude +91 22 6623 3301 [email protected]

India Equity Research| Media

June 13, 2013

FinancialsYear to March FY12 FY13 FY14E FY15ERevenues (INR mn) 10,121 11,325 15,683 19,421 Rev. growth (%) 14.7 11.9 38.5 23.8 EBITDA (INR mn) 1,676 2,738 3,096 3,852 Core profit (INR mn) (422) 376 34 435 Share outstanding (mn) 143 143 143 143 Diluted EPS (INR) (3.7) 0.9 (1.6) 0.8 EV/EBITDA (x) 25.9 17.8 16.2 13.2 ROAE (%) (5.3) 5.3 0.4 5.4

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2 Edelweiss Securities Limited

Key takeaways of interaction with management

Digital subscribers: As a result of greater clarity on the number of cable households and expansion in new areas during digitisation, Hathway’s universe has expanded to ~10.5mn subscribers (including multi‐TV households) from ~9mn earlier. Currently, it has seeded around ~6.5mn boxes and expects to take the figure to 7mn in Phases 1 and 2. Carriage revenue: Carriage revenue from larger broadcasters has been broadly declining; however, management expects overall carriage revenue to broadly remain flat due to more number of channels because of digitisation. As the network capacity increases, carriage revenue may rise again. Currently, Hathway has ~250 channels which are expected to increase to ~300‐350 by FY14 end. For FY13, carriage revenue was INR4,650mn (only 9 months operations of a significant JV were consolidated). As the subscription revenue will start rising, reliance on carriage fees will dip. Subscription revenue: Larger part of benefit of Phase 1 digitisation will be visible from Q2FY14. Delhi has been slightly challenging in terms of monetisation. Activation revenue: Activation revenue is expected to normalise from Q2FY14. Content fees: Currently, content costs are less than DTH, but they are expected to equalise as everyone is moving to the CPS (cost per subscriber) model. Eventually, it will be 33‐35% of subscription revenue (similar to DTH operators). For FY13, content cost was INR4,300mn (only 9 months operations of a significant JV were consolidated) and it is expected to increase in the 15‐25% range over analog scenario in Phase 1 and Phase 2 areas. Churn: Hathway experienced a churn of ~5% during Phases 1 and 2. Subsidy: Subscriber acquisition cost (subsidy element) for digital cable subscriber is ~INR900, while SAC for a broadband subscriber is ~INR2,800. INR depreciation: INR depreciation is a concern since box cost increases by ~INR25 for every 100bps depreciation. However, as per management, INR depreciation will not have much impact on its expectations because Hathway has already provided for the exchange fluctuation while modeling its numbers. KYC norms: TRAI is firm on the KYC norm and has issued cut‐off date of June 25, 2013. As of now, Hathway has completed ~60% of the process in Mumbai and Delhi. In Phase 2, KYC has been completed for ~20% subscribers. KYC documentation includes details like name, address, phone number, package choice, set top box number and smart card number. Billing: From July 1, the company will be doing retail billing i.e., a bill will be sent to customers in Mumbai and Delhi. Previously, Hathway was doing wholesale billing. Billing can be done either annually, quarterly or monthly depending on customer’s choice. Revenue share with LCO: TRAI had mandated revenue share with LCO of 35%; Hathway is comfortable with 40‐42%. The company is pushing for an absolute number kind of arrangement with LCOs. It believes that in the long run (~3 years) small size LCOs will disappear and only larger players will prevail.

Jagdish Kumar, MD & CEO, Hathway

Hathway Cable & Datacom


Deal with broadcasters: In a growing market, Hathway would prefer the fixed fee model. Phase 3: GTPL will be a big contributor in Phase 3 because it has a huge share in Gujarat. South Indian market: Will not enter South Indian markets like Tamil Nadu because of political pressures in these areas. The company, however, may return to these markets with its broadband offering as the company has a good share in broadband in these areas. Fund raising: For its existing business, the company is largely well funded as it already has inventory of 1mn STBs. However, if an expansion opportunity arises, the company is open to raising funds for it. Debt: Hathway has a debt of ~INR10bn which is at its peak and is not expected to increase further. Foreign debt: The company has a USD denominated debt of ~USD80mn. Total debt is a mix of buyer’s credit and supplier’s credit. Average cost of borrowing: 11%. Hedging cover: Hathway has hedged ~12‐13% of its forex exposure. Hedging cost is ~5‐6%. Vendor credit: The company has the option of vendor credit for a period of 18 months @ 4.5%, but it has got it at a better term from banks @ 3.75%. Broadband: Hathway has a subscriber base of ~0.4mn in broadband and it wants to double its broadband subscriber base in three years. Broadband business has a gross margin of ~70%. The company will be rolling out the new Docsis 3 technology in Mumbai, Bengaluru and Hyderabad. Of its total broadband subscribers, ~90‐95% are of the standalone entity. Government support: In all the phases of digitisation the government has taken a firm stand which is positive for the industry. HD: In December 2013, the company will be launching HD+DVR set top box. Structure: Going forward, Hathway will not form JVs and would rather like expand on its own. It is also considering the franchisee model.

Other key developments

TRAI prescribes standard tariff packages for STBs

TRAI has issued two tariff orders which prescribe standard tariff packages for set top boxes for DAS and consumer premises equipments for DTH service providers. The objective of this order is to make available STBs and CPE at a reasonable price while protecting the interests of service providers. The order contains four options that can be provided to consumers with different rentals and security deposit plans. The standard tariff package is to be mandatorily provided for by DTH and cable TV operators. As per the order, DAS service providers can provide STBs at a monthly rent of INR55.66 or INR50.66 (excluding taxes) if the security deposit is INR400 and INR800, respectively. For DTH service providers, the monthly rent for the CPE can be offered at a rental of INR71.75 per month and INR65.50 per

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month if the security deposit is INR500 and INR1,000, respectively. DAS service providers can offer STBs at a monthly adjustable rent of INR46.80 or INR32.93 if the security deposit is INR400 and INR800, respectively, while DTH service providers can provide STBs at a monthly adjustable rent of INR60.66 and INR43.32 if the security deposit is INR500 and INR1,000, respectively. Hathway consolidates to gain from Phase 2

Hathway acquired complete control of its cable TV joint venture with DB Corp’s Bhaskar in which it held 51%. The company acquired the balance 49% stake in the JV Hathway Bhaskar Multinet. Hathway Bhaskar is a cable TV distributor in Bhopal, Indore and Jaipur. This underscores the company’s increased focus on digitisation as it will help increase its footprint in tier 2 and 3 markets. Hathway appoints President for digital platform and EVP for operations

Mr. K V Anand, Tata Sky’s ex‐Chief Service Officer, has been appointed as President of Hathway’s digital platform. He will be reporting to Mr. Jagdish Kumar, MD and CEO. He has about 20 years of experience in the broadcast and distribution industry. Hathway also appointed Mr. Jagadesh Babu Botta as EVP operations. Fig. 1: KYC ads have started in Delhi

Source: Company



Table 1: Hathway’s presence in Phase 2 cities: Immense potential

Source: Company websites, Edelweiss research

City State State government Hathway DEN Siti Cable IMCL ZEE Sun TVBengaluru Karnataka CongressHyderabad Andhra Pradesh CongressJaipur Rajasthan CongressAhmedabad Gujarat BJPSurat Gujarat BJPLudhiana Punjab Akali DalPune Maharashtra CongressLucknow Uttar Pradesh SPKanpur Uttar Pradesh SPNagpur Maharashtra CongressIndore Madhya Pradesh BJPThane Maharashtra CongressBhopal Madhya Pradesh BJPVisakhapatnam Andhra Pradesh CongressPimpri‐Chinchwad Maharashtra CongressPatna Bihar JDUVadodara Gujarat BJPGhaziabad Uttar Pradesh SPAgra Uttar Pradesh SPNashik Maharashtra CongressFaridabad Haryana CongressMeerut Uttar Pradesh SPRajkot Gujarat BJPKalyan‐Dombivli Maharashtra CongressVaranasi Uttar Pradesh SPSrinagar J&K J&K NCAurangabad Maharashtra CongressAmritsar Punjab Akali DalNavi Mumbai Maharashtra CongressAllahabad Uttar Pradesh SPRanchi Jharkhand President's ruleCoimbatore Tamil Nadu AIADMKJabalpur Madhya Pradesh BJPJodhpur Rajasthan CongressChandigarh Chandigarh Union TerritoryHowrah West Bengal Trinamool CongressSolapur Maharashtra CongressMysore Karnataka CongressTotal 26 cities 24 cities 16 cities 14 cities 37 cities 5 cities

Presence of MSO Sizeable presence

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Outlook and valuations: Positive; maintain ‘BUY’ Hathway is the best placed MSO to capitalise on the huge digitisation opportunity. We have revised our earnings model to factor in the changes in revenue and cost structures due to digitisation and also the higher debt levels. Though increased debt remains a concern, increased debt levels are for rapid seeding of boxes by the company. The company seeded more than 3mn boxes in FY13. Currently, Hathway’s digital subscriber base stands at ~6.5mn. Hathway has increased its geographic presence and Phase 3 provides further growth opportunities. Compared to DEN, Hathway has a sizeable primary subscriber base, well‐entrenched broadband operations and has seeded the highest boxes amongst all MSOs. TRAI’s diktat to complete the KYC process by June 25, 2013 will speed up the retail billing process in Mumbai and Delhi, which is a key positive. Hence, we assign Hathway and EV/EBITDA target multiple of 16x (15x earlier) and arrive at a target price of INR347 (INR352 earlier). In spite of the increased multiple, the target price has reduced slightly due to increased debt levels and reduced cash due to high capex. Currently, the stock is trading at EV/EBITDA of 16.2x and 13.2x FY14E and FY15E, respectively. Maintain ‘BUY/Sector Outperformer’.

Table 2: Hathway’s target price calculation

Source: Edelweiss research

EV/EBITDA FY15EEBITDA (INR mn) 3852Target EV/EBITDA Multiple (x) 16Minority interest (INR mn) 2643Less: Debt (INR mn) 9700Add: Cash and Investments (INR mn) 394Target Market Cap (INR mn) 49684No. of shares (mn) 143Target price (INR) 347



Company Description Hathway is one the largest MSOs as well as one of the leading cable broadband service providers in India. Having entered the cable and entertainment business in 1995, the company offers three broad services—analog cable television, digital cable television and broadband internet. Its key promoter is the Rajan Raheja Group with a ~49.5% stake. While Hathway currently provides analog TV services in 140 cities, it is the largest digital cable TV provider in India. It is also the first cable TV service provider to offer broadband services in 19 cities. The company has bagged the ‘Best Cable TV Operator of the Year’ award by the Indian Television Awards eight times. Hathway has launched a channel Hathway Music (music channel).

Investment Theme The compulsory digitisation mandate will lead to digitisation of cable TV services across India over the next 2‐3 years. Converting its existing analog subscriber base on the digital platform will provide Hathway a huge opportunity to increase subscription revenue due to lower under‐declaration and higher ARPU. Hathway’s digitisation progress is on track and the company is looking to build on to its broadband subscriber base as well.

Key Risks • DTH players can be at an advantage in Phase 3 and Phase 4

• Fund raising may be required

• Loss of subscribers if LCOs shift loyalties

• Intense competition may limit ARPU growth


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Financial Statements

Income statement (INR mn)

Year to March FY12 FY13E FY14E FY15E

Net revenue 10,121 11,325 15,683 19,421

Pay channel cost 4,295 4,325 5,964 6,680

Other operating expenses 3,224 3,301 5,525 7,665

Employee costs 926 961 1,098 1,224

Total operating expenses 8,445 8,587 12,588 15,569

EBITDA 1,676 2,738 3,096 3,852

Depreciation & Amortization 1,409 1,661 1,988 2,185

EBIT 268 1,078 1,108 1,666

Other income 131 115 157 136

Interest expenses 520 602 996 1,056

Exceptionals 148 36 ‐ ‐

Profit before tax (269) 555 269 746

Provision for tax 153 179 235 311

Net profit (422) 376 34 435

Extraordinary income/ (loss) 32 30 30 30

Profit After Tax (390) 406 64 465

Minority interest 102 249 266 325

Profit after minority interest (492) 157 (202) 140

Shares outstanding (mn) 143 143 143 143

Diluted EPS (INR) (3.7) 0.9 (1.6) 0.8

Common size metrics


Pay channel cost 42.4 38.2 38.0 34.4

Other operational expenses 31.9 29.1 35.2 39.5

Employee expenses 9.1 8.5 7.0 6.3

EBITDA margins 16.6 24.2 19.7 19.8

Net profit margins (4.2) 3.3 0.2 2.2

Growth ratios (%)


Revenues 14.7 11.9 38.5 23.8

EBITDA 11.7 63.3 13.1 24.4

Key Assumptions


Macro

GDP(Y‐o‐Y %) 6.2 5.0 6.0 7.0

Inflation (Avg) 8.9 7.4 5.2 6.0

Repo rate (exit rate) 8.5 7.5 6.8 6.0

USD/INR (Avg) 48.0 54.5 55.0 53.0

Company

Sales assumptions

Digital subscriber additions (mn) 0.2 3.1 2.3 1.7

Digital subscribers (mn) 2.1 5.2 7.5 9.2

Primary subscribers' ARPU (INR) 172 180 190 200

Total subscription revenue (INR mn) 3,087 3,768 6,709 11,095

Activation revenue (INR mn) 150 1,860 1,610 1,224

Broadband subscriber additions (mn) 0.0 0.1 0.1 0.1

Broadband subscribers (mn) 0.4 0.5 0.6 0.7

Broadband ARPU (INR) 305 312 325 330

Placement & Carriage Revenue growth (%) 21.5 6.3 (15.0) (15.0)

Broadband revenue (% of rev.) 14.4 13.0 14.6 13.3

Cost assumptions

Pay channel costs (% of rev.) 42.4 36.9 38.0 34.4

Prov. for Doubtful Debts/Bad Debts (% of rev.) 4.5 4.5 5.0 4.3

Personnel cost (% of rev.) 9.1 7.4 7.0 6.3

Admin and other expenses (% of rev.) 12.3 10.4 9.6 8.1

Ad & publicity expenses (% of rev.) 0.8 1.0 1.0 0.8

Bandwidth & Lease Line Cost (% of rev) 2.8 2.7 2.7 2.6

Financial assumptions

Capex (INR mn) 2,338 6,000 3,000 2,200

Debtor days 87 87 95 100

Inventory days 4 4 4 4

Payable days 119 119 115 110

Cash conversion cycle (days) (28) (28) (16) (6)

Interest rate on o/standing debt (%) 11.0 11.0 11.0 11.0

Depreciation as % of gross block 9.8 9.0 8.2 8.2



Peer comparison valuation

Market cap Diluted PE (X) EV/EBITDA (X) EV/Sales (X)

Name (USD mn) FY14E FY15E FY14E FY15E FY14E FY15E

Hathway Cable & Datacom 666 ‐ ‐ 16.2 13.2 3.2 2.6

DEN Networks 495 34.5 18.4 10.0 6.6 2.4 1.7

Dish TV India 1,127 ‐ ‐ 10.1 7.7 3.0 2.4

Sun TV Network 2,725 18.3 15.3 9.0 7.2 6.8 5.6

Zee Entertainment Enterprises 3,601 26.6 22.6 17.6 14.4 5.1 4.5

Median ‐ 18.3 15.3 10.1 7.7 3.2 2.6

AVERAGE ‐ 15.9 11.3 12.6 9.8 4.1 3.4

Source: Edelweiss research

Cash flow metrics


Operating cash flow 1,636 1,878 2,849 3,037

Investing cash flow (1,515) (6,124) (3,099) (2,336)

Financing cash flow (147) 4,058 (96) (856)

Net cash flow (26) (187) (346) (155)

Capex (2,338) (6,000) (3,000) (2,200)

Profitability & efficiency ratios


ROAE (%) (5.3) 5.3 0.4 5.4

ROACE (%) 2.1 6.6 5.8 8.3

Inventory day 4 4 4 4

Debtors days 87 87 95 100

Payable days 119 119 115 110

Current ratio 1.4 1.6 1.3 1.4

Debt/EBITDA 2.4 3.1 3.1 2.5

Debt/Equity 0.5 1.1 1.2 1.2

Adjusted debt/equity 0.5 1.1 1.2 1.2

Interest coverage 0.5 1.8 1.1 1.6

Operating ratios


Total asset turnover 0.7 0.7 0.8 1.0

Fixed asset turnover 1.5 1.2 1.3 1.5

Equity turnover 1.2 1.4 1.9 2.4

Valuation parameters


Diluted EPS (INR) (3.7) 0.9 (1.6) 0.8

CEPS (INR) 6.3 12.5 12.3 16.0

Price/BV (x) 4.8 4.8 4.9 4.8

EV/Sales (x) 4.3 4.3 3.2 2.6

EV/EBITDA (x) 25.9 17.8 16.2 13.2

FCFPS (INR) (4.9) (28.8) (1.1) 5.8

Balance sheet (INR mn)

As on 31st March FY12 FY13E FY14E FY15E

Equity capital 1,429 1,429 1,429 1,429

Reserves & surplus 6,598 6,755 6,554 6,695

Shareholders funds 8,028 8,185 7,983 8,124

Minority interest (BS) 1,802 2,052 2,318 2,643

Short term debt 1,241 1,600 2,000 2,500

Long term debt 2,700 7,000 7,500 7,200

Borrowings 3,940 8,600 9,500 9,700

Deferred tax liability 103 103 103 103

Sources of funds 13,873 18,939 19,903 20,569

Tangible assets 6,969 11,308 12,576 12,864

Intangible assets 2,244 2,483 2,484 2,483

CWIP (incl. intangible) 1,005 1,005 1,005 1,005

Total net fixed assets 10,219 14,797 16,065 16,352

Goodwill on consolidation 1,947 1,947 1,947 1,947

Non current investments 53 53 53 53

Current Investments 105 105 105 105

Cash and equivalents 976 789 443 288

Inventories 55 48 94 65

Sundry debtors 2,492 3,083 5,235 5,560

Loans and advances 1,693 1,693 1,693 1,693

Other current assets 229 229 229 229

Total current assets (ex cash) 4,628 5,211 7,410 7,706

Trade payable 1,583 1,245 2,513 1,513

Others current liabilities 2,313 2,559 3,448 4,210

Total CL & provisions 3,896 3,804 5,961 5,723

Net current assets (ex cash) 732 1,407 1,449 1,983

Uses of funds 13,873 18,939 19,903 20,569

Book value per share (INR) 56.2 57.2 55.8 56.7

Free cash flow (INR mn)


Net profit (492) 157 (202) 140

Depreciation 1,409 1,661 1,988 2,185

Others 258 (615) 1,022 178

Gross cash flow 1,188 1,203 2,808 2,503

Less: Changes in WC (448) (675) (41) (534)

Operating cash flow 1,636 1,878 2,849 3,037

Less: Capex 2,338 6,000 3,000 2,200

Free cash flow (702) (4,122) (151) 837


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Holding ‐ Top10Perc. Holding Perc. Holding

P6 Mauritius India Holding 9.88 Providence Equity Advisors 9.88

Reliance Capital Trustee Co Ltd 8.88 Macquarie Bank Limited 7.37

Reliance Equity Opport FD 5.34 Infrastructure Ind Hldg FD 3.89

Norges Bank 2.15 Uti Asset Management Co Ltd 1.85

Govt Pension Fund Global 1.54 Tree Line Asia Master Fund 1.03

*as per last available data

Insider Trades Reporting Data Acquired / Seller B/S Qty Traded No Data Available

*in last one year

Bulk Deals Data Acquired / Seller B/S Qty Traded Price No Data Available

*in last one year

Additional Data

Directors Data Bharat Shah Chairman, Independent Director Rajan Raheja Non‐ executive & Non Independent DirectorAkshay Raheja Non‐ executive & Non Independent Director Viren Raheja Non‐ executive & Non Independent DirectorK. Jayaraman MD & CEO Vinayak Aggarwal Non‐ executive & Independent DirectorBrahmal Vasudevan Independent Director Sasha Mirchandani Independent Director Sridhar Gorthi Independent Director Devendra Shrotri Independent Director Biswajit Subramanian Additional Director

Auditors ‐ G. M. Kapadia & Co.

*as per last annual report


Company Absolute

reco

Relative

reco

Relative

risk

Company Absolute

reco

Relative

reco

Relative

Risk

DEN Networks BUY SP M Dish TV India BUY SP M

Hathway Cable & Datacom BUY SO M Jagran Prakashan BUY SP M

PVR BUY SP M Sun TV Network BUY SP M

Zee Entertainment Enterprises BUY SO M

RATING & INTERPRETATION

ABSOLUTE RATING

Ratings Expected absolute returns over 12 months

Buy More than 15%

Hold Between 15% and - 5%

Reduce Less than -5%

RELATIVE RETURNS RATING

Ratings Criteria

Sector Outperformer (SO) Stock return > 1.25 x Sector return

Sector Performer (SP) Stock return > 0.75 x Sector return

Stock return < 1.25 x Sector return

Sector Underperformer (SU) Stock return < 0.75 x Sector return

Sector return is market cap weighted average return for the coverage universe within the sector

RELATIVE RISK RATING

Ratings Criteria

Low (L) Bottom 1/3rd percentile in the sector

Medium (M) Middle 1/3rd percentile in the sector

High (H) Top 1/3rd percentile in the sector

Risk ratings are based on Edelweiss risk model

SECTOR RATING

Ratings Criteria

Overweight (OW) Sector return > 1.25 x Nifty return

Equalweight (EW) Sector return > 0.75 x Nifty return

Sector return < 1.25 x Nifty return

Underweight (UW) Sector return < 0.75 x Nifty return


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Edelweiss Securities Limited, Edelweiss House, off C.S.T. Road, Kalina, Mumbai – 400 098. Board: (91‐22) 4009 4400, Email: [email protected]

Vikas Khemani Head Institutional Equities [email protected] +91 22 2286 4206

Nischal Maheshwari Co‐Head Institutional Equities & Head Research [email protected] +91 22 4063 5476

Nirav Sheth Head Sales [email protected] +91 22 4040 7499

Coverage group(s) of stocks by primary analyst(s): Media DEN Networks, Dish TV India, Hathway Cable & Datacom, Jagran Prakashan, PVR, Sun TV Network, Zee Entertainment Enterprises

Distribution of Ratings / Market Cap

Edelweiss Research Coverage Universe

Rating Distribution* 120 49 17 186* ‐ stocks under review

Market Cap (INR) 118 56 12

Date Company Title Price (INR) Recos

Recent Research

03‐Jun‐13 Den Networks

Revenue gets activation boost; Result Update

214 Buy

31‐May‐13 Jagran Prakashan

Soft quarter; needs to chant consolidation mantra; Result Update

85 Buy

30‐May‐13 Hathway Cable & Datacom

Activation boom spurs growth; Result Update

280 Buy

> 50bn Between 10bn and 50 bn < 10bn

Buy Hold Reduce Total

Rating Interpretation

Buy appreciate more than 15% over a 12‐month period

Hold appreciate up to 15% over a 12‐month period

Reduce depreciate more than 5% over a 12‐month period

Rating Expected to



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