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Last Updated : Feb 20, 2019 02:54 PM IST | Source: Moneycontrol.com

Buy Sun TV; target of Rs 720: Motilal Oswal

Motilal Oswal is bullish on Sun TV has recommended buy rating on the stock with a target price of Rs 720 in its research report dated February 08, 2019.

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Motilal Oswal's research report on Sun TV


SUNTV reported strong revenue growth of 32% YoY to INR9b (14% beat), mainly due to better-than-expected movie revenue and backed by healthy ad and subscription revenue. EBITDA, thus, grew by a robust 36% YoY to INR6.8b (15% beat), with the margin expanding 175bp YoY to 73.8%. PAT grew 32% YoY to INR3.5b (7% beat) on the back of strong EBITDA growth, partly offset by higher depreciation cost. For 9MFY19, revenue/EBITDA/PAT grew 29%/36%/38% YoY.


Outlook


We roll forward our valuation to FY21E, valuing SUNTV at a TP of INR720 (prior: INR750), ascribing 15x (~30% discount to three-year average due to mounting pressure on viewership share and increasing investments across both traditional and digital medium) P/E to FY21E EPS.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Feb 20, 2019 02:54 pm
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