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Hold Sun TV Network; target of Rs 555: ICICI Direct

ICICI Direct recommended hold rating on Sun TV Network with a target price of Rs 555 in its research report dated November 13, 2022.

November 23, 2022 / 02:49 PM IST
 
 
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ICICI Direct's research report on Sun TV Network

Sun TV Network (Sun TV) is leading regional broadcaster in India, which owns and operates a bouquet of 32 TV channels prominently across southern market (Tamil, Telugu, Kannada & Malayalam) and Bengali language and also an OTT app SunNXT. Its key market - Tamil viewership share has dipped from ~55%+ to ~40%+ in last few years, with peers and new entrants lapping up market share.

Outlook

We maintain our HOLD rating. Pushing back of OTT content spending remains a key concern while films content spending will create volatility in earnings. We also await management outlook/commentary on content strategy, growth outlook and capital allocation ahead, which restricts us from turning constructive despite lucrative valuations. We value Sun at Rs 555 i.e. 10x FY25E P/E.