PN Vijay, Portfolio Manager of askpnvijay.com advised buying Sun TV Network on every dip. The stock has been falling since yesterday. According to him, these types of crashes could be used to build into potential blue chips like Sun TV.
Vijay told CNBC-TV18, “Sun TV is definitely an opportunity. I think the business model is terrific in Sun TV. It has spread its fangs all over the place. In fact, it continues to be a dominant entertainment channel by any counts in the four South Indian states which account for about 40 percent of India’s television viewing.”
He further said, “The North Indian channels find it very difficult to break the language barrier and enter there. So it gives it a very strong monopolistic sort of market share there. Apart from that, its DTH (direct-to-home) business is gathering momentum. It did have that blip of the local state government in Tamil Nadu trying to nationalise it but that didn’t go very far. So the business model is exceptionally strong for Sun TV.”
“I believe that the politics is wearing it down but I think the family in my mind is sort of starting to distance itself from the politics - that’s the sense I am getting from Tamil Nadu. SpiceJet does not fall that much. It is as much a Maran company. In two years from now, I can imagine the Maran family to be totally out of politics. So I think these types of crashes could be used to build into potential blue chips like Sun TV,” Vijay added.