Motilal Oswal has given Buy recommendation for Sun TV Network recommended buy rating on the stock with a target price of Rs 550 in its research r with a target price of Rs. 550 in its research report issued on Aug 13, 2022

Motilal Oswal’s research report on Sun TV Network

SUNTV reported a revenue/PAT growth of 11%/28% from pre-COVID levels, even though ad revenue was weak (down 7% from pre-COVID levels). This may be due to higher contribution from the movie business. We expect a soft EPS CAGR of 6% over FY22-24, on the back of low ad and subscription growth and lower margin. A loss in market share loss and delayed OTT investments remain a key concern. The recent upbeat valuation in the recently concluded auction of new IPL teams makes the stock’s valuation compelling at below 6-7x. We maintain our Buy rating.

Outlook

We value the stock at 12x FY24 P/E of to arrive at our TP of INR550. We maintain our Buy rating.

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