Sun TV Network shares have had a stellar run at the bourses so far, CITI Research believes that the stock will shine brighter going forward. Sun TV shares were trading at Rs 834.3 this afternoon, up by more than 0.6% since the previous close. CITI has a target price of Rs 749 on the shares.
Sun TV Network shares have had a stellar run at the bourses so far, CITI Research believes that the stock will shine brighter going forward. Sun TV Network shares closed at Rs 822.15 this afternoon, down by more than 0.85% since the previous close. CITI has a target price of Rs 749 on the shares.
The global research firm sees an improvement in advertising trends in the company. Earlier this month, Star India won the media rights for the Indian Premiere League (IPL) for over Rs 16,000 crore for a period of five years. Sun TV is likely to gain from this development as the company’s IPL franchise SunRisers Hyderabad will earn more revenue. CITI says that IPL will be a very important growth driver for the company.
The shares have had a dream run at the bourses so far, with returns of more than 68% in the last eight months. The scrips have returned more than 70% in the last one year. In comparison, the Nifty Media Index is up by 6% in the last one year. Research and brokerage firm CLSA had retained buy call on the stock, and had also revised the target price upward to Rs 965 from the earlier target of Rs 890 per share.
Earlier, CLSA said that Sun TV’s IPL revenue could rise 30 per cent from ₹143 crore last year assuming the media rights were sold for ₹9,500 crore, which got actually sold for over Rs 16,000 crore. Analysts say that the big digitisation thrust in Tamil Nadu will lead to an increase in average revenue per user from subscribers in the state, provided it is implemented properly. This is a positive for Sun TV, as it has a big presence in the southern states.