Do not buy Sun TV: Rajen Shah

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Do not buy Sun TV: Rajen Shah

Do not buy Sun TV, says Rajen Shah, Chief Investment Officer, Angel Broking.

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Excerpts from Your Stocks on CNBC-TV18 Watch the full show » ALSO READ See previous views by Rajen Shah See what other Experts & Brokerages are saying about Sun TV Network See messages about Sun TV Network Sun TV Network BSE | NSE 10/02/12 Are Mutual Funds betting on Sun TV Network?

Do not buy  Sun TV , says Rajen Shah , Chief Investment Officer, Angel Broking.

Shah told CNBC-TV18, "Sun TV as we all know it is dominant player in the South Indian broadcasting and DTH market. I think the dominance is now paying off actually, very good numbers almost about 33% kind of topline growth and about 21% kind of net profit growth. But I think the net profit growth in the coming quarters would be even spectacular because the radio business has turned EBITDA positive and the management is hopeful of the performance from the segment improving considerably in the coming quarters. The Ad business has also been reasonably good about 13-14% kind of growth. The DTH subscription business is up almost 100%, so I think it is a robust set of numbers. But we need to keep in mind that in the best case scenario, based on what the management has forecasted almost about 40% kind of net profit growth for the current year, I think in the best case scenario it will report about Rs 13.5 kind of earnings. So it is quoting at about 24 times the earnings. So certainly it is not a cheap stock. I would certainly not buy the stock, though it is a decent set of numbers I would certainly wait for a sharp dip in the stock price before I really take a plunge in that stock."