Sun TV Network - REDUCE - TP Rs.878 - Result Update - Kotak- Sun TV Network's 2QFY18 earnings came in ahead of our estimates as advertising revenues came in modestly ahead of estimates, costs were contained. Going forward, Sun TV's valuations are likely to be quite volatile, as the stock is likely to react to development in TN politics, its OTT platform launch and take-up, and television viewership changes. We stay focussed on TV, where we see significant potential negatives as Sun TV is yet to recover fully to "pre- Bigg Boss" viewership shares, and Gemini TV has lost considerable share in recent months. Tamil and Telugu markets being more significant, Sun TV is likely to see significant challenges to perform in-line/ ahead of the industry. Competitive pressures are likely to rise in the coming quarters, as Viacom18 is set to launch its Tamil GEC over the next 2-3 quarters. Maintain REDUCE, while we acknowledge that Sun TV's positives (potential changes in TN political space, OTT launch and benefits therefrom) are likely to preceed negatives) - which leads to our upgrade of price target to Rs 878
Shares of SUN TV NETWORK LTD. was last trading in BSE at Rs.835.4 as compared to the previous close of Rs. 852.1. The total number of shares traded during the day was 47409 in over 1070 trades.
The stock hit an intraday high of Rs. 856.5 and intraday low of 828.8. The net turnover during the day was Rs. 39966866.