Sun TV Network Q2 Results Review - Inline And Weak, Bleak Outlook: Dolat Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.Sun TV Network Ltd.’s Q2 FY23 was in-line and weak. Broadcast business revenue/Ebit/adjusted profit after tax are up 2.4/down 5/up 4.3% YoY.  Sun TV is trading at an attractive 13/12.6/12.1 times FY23/24/25E earnings per share. The company’s strong balance sheet with C&CE of ~Rs 50 billion (~23% of midcap) and leadership in Tamil market drives comfort. IPL bids (Rs 51 and Rs 71 billion for two new teams) and three times IPL bids at ~Rs 480 billion versus last cycle provide additional upside in the long-term from value unlocking perspective. But, Sun TV’s under-investment in core broadcast/digital business remains a key constraint from future proofing of business perspective. Low dividend payout with mountain of cash raise fears of capital misallocation. These have been constraining factors for rerating and likely to continue so despite attractive valuations. Sun TV is a potential acquisition candidate in our view and event surrounding acquisition may drive significant re-rating..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Sun TV Network Q2 Results Review - Inline And Weak, Bleak Outlook: Dolat Capital

Sun TV’s under-investment in core broadcast/digital business remains a key constraint from future proofing of business perspective

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