Motilal Oswal's research report on Sun TV Network
Sun TV reported a muted quarter with persisting pressure on ad revenue (-10% YoY). Overall 1QFY26 revenue declined ~2% YoY, while opex remained elevated, leading to a 13% YoY decline in EBITDA (11% miss). SUN TV acquired a 100% stake in Yorkshire-based The Hundred franchise “Northern Superchargers” for GBP100m. We view this as an expensive acquisition, given the current media rights value and competition from other UK sports for any significant improvement in media rights over the long term.
Outlook
We value SUN TV on an SoTP basis: 7x Sep’27 EV/sales for SRH, ~5x EV/EBITDA for the core TV business, 0.5x investments for Northern Superchargers, and 1x for cash/dividends (~INR 85b), for our revised TP of INR600 (implies ~14x FY27E P/E). We maintain our Neutral rating.
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