Sun TV Network: leading player in the South

Sun TV Network Limited, is one of the largest TV broadcasters in India, operates satellite TV channels in five languages ​​of Tamil, Telugu, Kannada, Malayalam and Bangla, broadcasts FM radio stations across India and owns the Indian Prime Minister’s SunRisers Hyderabad cricket franchise. League.

The company continues to declare dividends at least 2-3 times a year. The dividend yield translates to a dividend of around 1-2%.

The company is also a debt-free society, which is a good thing as interest rates are expected to rise in the economy.

SUN TV: Good performance for the quarter ending September 30, 2021

SUN TV: Good performance for the quarter ending September 30, 2021

For the quarter ended September 30, 2021, the company reported higher revenue by 3.69% at Rs. 520.58 crores compared to Rs. 502.03 crores for the previous quarter ended September 30, 2020.

Current market price 52 week high 52 week lows
Rs495 606 rupees Rs450

The pre-tax profit for the quarter increased by 14.51% to Rs. 527.58 crore from Rs. 460.74 crore for the previous quarter ended September 30, 2020. The after-tax profit for the current quarter ended September 30, 3032 rose by 13.71% to reach Rs. 393.32 crore from Rs. 345.91 crore for the previous quarter ended September 30, 2020.

Valuation and view on SUN TV

Valuation and view on SUN TV

The company reported EPS of Rs 10.04 for the quarter ending September and almost the same for the June quarter. If you annualize the same, we can expect EPS of Rs 40 for 2021-22. The stock priced at Rs 495 is reduced around 12 times. The average multiples in the markets are significantly higher. For example, the p/e multiple of Sensex shares is currently 22 times. If we even grant a/e multiple of 18 times for SUN TV, given its debt-free status and strong brand value, including SunRisers Hyderabad and RedFM franchise, the stock should trade at Rs 720 at least. Buy SUN TV stock for long term gains.

    Warning

Warning

Investing in stocks is risky and so investors need to understand the risk. The author and Greynium Information Technologies Pvt Ltd would not be responsible for any loss caused based on the article. The author and his family do not own shares in any Sun TV network. Caution is advised before investing in the markets.