Buy Sun TV Network, target price Rs 620: Motilal Oswal

Motilal Oswal has buy call on Sun TV Network with a target price of Rs 620. The current market price of Sun TV Network Ltd. is Rs 511.65. Time period given by analyst is one year when Sun TV Network Ltd. price can reach defined target.

Sun TV Network Ltd., incorporated in the year 1985, is a Mid Cap company (having a market cap of Rs 20009.65 Crore) operating in Media & Entertainment sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 877.75 Crore, down -.20 % from last quarter Total Income of Rs 879.52 Crore and up 21.39 % from last year same quarter Total Income of Rs 723.10 Crore. Company reported net profit after tax of Rs 378.71 Crore in latest quarter.


Investment Rationale
The brokerage cuts FY22E/FY23E EBITDA marginally (4%) due to a slower recovery. It has revised upward FY22E/FY23E PAT estimate by 10%/12% due to its revised amortization policy. SUN TV trades at a FY22E/FY23E P/E of 11.7x/11.1x. It values it at a FY23E P/E of 13x to arrive at TP of INR620/share.

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of June 30, 2021, while FIIs held 7.7 per cent, DIIs 3.6 per cent and public and others 13.6 per cent.