Buy This Media Stock For 27% Return, Declined 9% Intraday: Motilal Oswal

Leading brokerages firm Motilal Oswal has recommended investors to buy shares of Sun TV Network Ltd with a target price of Rs 640 apiece and a potential return of 27%. SUNTV reported a flat EBITDA. PAT too stood flat on a YoY basis at INR5.2b, despite a weak revenue decline of 4%, aided by cost controls and higher other income. Check key takeaways below:

1. Sun TV Network Stock Outlook

The current market price of the stock is Rs 502 apiece on BSE with an intraday decline of 8.87%. The stock's 52-week high is Rs 569 apiece and 52-week low is Rs 402 apiece, respectively. It has a market capitalisation of Rs 19,792.90.

2. Sun TV Network Return

The stock has declined 41% in the last 5-years, gained 2% in last 3-years, and declined 11% in last 1-year. The stock has declined 6% in last 1-month.

3. Sun TV Network Valuation

According to Motilal Oswal, "We expect a soft PAT CAGR of 6% over FY22-24 on lower revenue growth visibility and lesser margin. Market share loss and lower investment in the OTT segment as compared to its peers remain a key concern. The recent upbeat valuation for the new IPL team at the recently concluded auction, makes the stock's valuation compelling at 6-7x EV/EBITDA. We maintain our Buy rating with a TP of INR640."

4. Sun TV Network About

Sun TV Network, India's largest media Conglomerate has power packed thirty-three TV Channels with the reach of more than 95 million households in India. SunTV Network's channels can be viewed in 27 countries including U.S.A, Canada, Europe, Singapore, Malaysia, Srilanka, South Africa, Australia and New Zealand, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.