This Top Debt Free Media Stock Is Down 30%, Should You Buy The Stock Before It's Late?

Markets are giving investors some opportunities at bargain hunting. At least compared to Jan 2022, the present period offers more value in stocks, thanks to the crash in individual stocks post Feb, 2022. Here is a stock that has fallen steeply and could be a good buy.

Sun TV: Sharp fall in share price

Current market price	52-week high	Down from 52-week high
Rs 427	Rs 607	30%

The stock of Sun TV is down as much as 30% from 52-week highs, thus offering investors an opportunity to buy into shares. Sun TV Network, is one of India's top media conglomerates and has thirty three TV Channels with the reach of more than 95 million households in India. It operates satellite Television Channels across six languages of Tamil, Telugu, Kannada, Malayalam, Bangla and Marathi, airs FM radio stations across India and owns the SunRisers Hyderabad Cricket Franchise of the Indian Premier League and the Digital OTT Platform Sun NXT. We believe that it has good business opportunities across the spectrum.

Reasons for the fall in the stock price

Select media stocks like Zee Entertainment, TV Today Network have seen a sharp fall in their share price. But, if you look at the quarterly numbers of media companies for the quarter ending March 31, 2022, there is nothing to merit the fall. The shares of SUN TV have fallen post numbers, which makes the 30% fall in the stock as a serious contender for buying the stock. We believe there is no reason for a sharp fall, as structurally things still remain sound for the company and the industry.

Reasons to buy the stock of SUN TV

The company is a debt free company and this bodes well at a time when interest rates are rising. Apart from this the company also offers a decent dividend yield of nearly 3%. We believe that fundamentally too, the stock is very inexpensive in terms of valuations. For example, the price to book value of the stock is just 2 times. The shares are also trading at a price to earnings multiples of 10 times. Nifty stocks are trading at a p/e of 22 times and most midcap companies are trading at similar average valuations. This leaves good scope for the stock to move higher. Apart from this, as economic growth gathers steam, the company could be one of the beneficiaries. The management has a good track record of running the business for several decades now. The strong network, cash on books and dividend yields are some pointers that have pushed us in recommending to buy the stock. Apart from this, the company also has a strong brand