Elara Capital maintains 'reduce' on Sun TV Network, target price Rs 510

Elara Capital has maintained its reduce rating on Sun TV Network with a target price of Rs 510 as against the current market price of Rs 491. Sun TV continues to underperform on lower ad growth, which has declined 6% year-on-year in the nine months ended December 2019. The brokerage expect sthis underperformance to prevail in the near term as Sun TV’s other channels in the Tamil and Telugu genre have failed to report any sharp gains in viewership share. The stock has underperformed in the past year with 20% decline in absolute terms from current levels. The valuations are at 13.9 times FY21 estimated PE.