Motilal Oswal has given Buy recommendation for Sun TV Network recommended buy rating on the stock with a target price of Rs 670 in its research rep with a target price of Rs. 670 in its research report issued on Nov 08, 2021
Motilal Oswal’s research report on Sun TV Network
Sun TV (SUNTV) reported in-line nos – revenue/PAT was up 10%/14% YoY, with ad revenues reaching pre-pandemic (2QFY20) levels and delayed benefit from the IPL offering spillover. This was offset by a sluggish subscription revenue run-rate. Our FY23E/FY24E estimates are largely maintained; we build in a 6% CAGR over FY20-23E. The recent upbeat valuation for the new IPL team auction makes the stock valuation compelling at below 10x on Sept’23E. Along with intensifying content investments to win market share, this is a key positive. However, delayed investments in OTT remain a concern. We maintain a Buy rating.
We value the stock on P/E of 14x on Sept’23E to arrive at Target Price of INR670. We maintain a Buy rating.