Avoid Sun TV despite attractive valuations: P Phani Sekhar, Fund Manager-PMS, Angel Broking

In a chat with ET Now, P Phani Sekhar, Fund Manager-PMS, Angel Broking, shares his views on Sun TV.

ET Now: On the charts Sun TV and Spice probably taken a more serious turn, do you think this would essentially lead the stocks even lower?

P Phani Sekhar: Difficult to say because of the extraneous issues out there. Since they completely depend on how the news flow pans out, it is difficult to map out the fundamentals. Majority of Sun TV's value comes from the southern markets especially from Tamil Nadu.

ET Now: You were speaking about the overhang that could last for a Sun TV and Spice Jet?

P Phani Sekhar: After the change in political dispensation in Tamil Nadu, we have actually seen that there have been some significant reversals for Sun TV on the ground. If you combine the pressure on the promoter group because of the recent news flow and the fact that it is not very clear as to what kind of incremental value addition will the management bring in a large media monopoly like Sun. So, considering this even though the valuations look attractive, I would be careful and I would not like to enter it at this point in time.