Motilal Oswal 's research report on Sun TV Network
Slowdown in ad spend, a high base of movie revenues, and loss of IPL revenues have led to an overall drop in revenues and EBITDA, partially offset by strong growth in subscription revenues. - Ad revenue is expected to drop 20% going ahead in FY21E, while subscription revenues would grow at 12% in FY21E. We have thus cut our FY21E/FY22E EPS by 4%/1%.
The stock trades at 11x FY22E EPS. We value Sun TV at 13x FY22E P/E to arrive at target price of INR500. Maintain Buy.
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