Moneycontrol
Feb 16, 2017 03:18 PM IST | Source: Moneycontrol.com

Buy Sun TV; target of Rs 850: ICICI Direct

ICICI Direct is bullish on Sun TV has recommended buy rating on the stock with a target price of Rs 850 in its research report dated February 13, 2017.

Buy Sun TV; target of Rs 850: ICICI Direct


ICICI Direct's research report on Sun TV


Revenues were at Rs 589.4 crore vs. our estimate of Rs 618.0 crore. Subscription revenues grew 17.0% YoY to Rs 241.9 crore, owing to robust growth in cable subscription revenues, aided by inclusion of digital revenue. Advertisement revenue, however, posted de-growth of 6.8% YoY due to more pronounced impact from demonetisation as it has a higher dependency on regional advertising.


Outlook


With the acquittal news, the stock witnessed a significant rally on the bourses. We feel the stock is yet to reflect its full potential. We value the stock at 24x FY19E EPS of Rs 35.4. Hence, we arrive at a target price of Rs 850 and maintain BUY recommendation.

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