Dec 05, 2012, 03.24 PM | Source: Moneycontrol.com
Chennai-based media company Sun TV Network rallied 2 percent to touch a new 52-week high of Rs 422.40 on Wednesday after foreign research firm UBS upped its traget price at Rs 480 a share.
The reason for the upgrade UBS said was the management guidance for double-digit growth in advertisement revenue on the back of higher viewership ratings and robust advertisement spends by FMCG companies.
On November 12 (after second quarter results), in an interview with CNBC-TV18, SL Narayanan, Group CFO at Sun Group said 55 percent of the ad revenue for the company came in from the FMCG sector, where he would expect a distinct shift in spending pattern. " We expect double-digit ad revenue growth rate for the third quarter of this year," he said.
However, the net profit of the company declined 15.8 percent year-on-year to Rs 151.65 crore in the July-September quarter of 2012. Income from operations for the second quarter dipped to Rs 433.34 crore as against Rs 451.26 crore registered during the same period last year.
The stock gained 25 percent in a month, especially after the results announcement. At 14:09 hours IST, the share rose 1.6 percent to Rs 420.70 on the Bombay Stock Exchange.
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