Section: Market 

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Tags: Sun TV 

 

Mumbai: Amid strong quarter four results, the brokerage firms seem bullish on Sun TV shares, with a majority of them giving Buy recommendations. The southern-based media company’s consolidated profit has doubled in the fourth quarter of the financial year 2020-2021. 

CLSA maintaining a Buy stance for Sun TV, says ad revenue and subscription growth were a surprise, however, dividend payout was disappointing. It further said, the management expects subscriptions to continue to grow in double digits in FY22, while advertising revenue revival is likely in Q2 FY22. 

The brokerage firm expects the stock would grow by Rs 645 per share in the coming days. Sun TV shares on Friday closed flat but positive at Rs 532.15 apiece. 

Similarly, Macquarie says Sun TV posted a healthy 7 per cent year-on-year growth in subscription revenue in Q4 and changes the FY22-23 estimates by 0-3 per cent growth. Maintaining Outperform stance, the brokerage firm sets a target of Rs 612 per share. 

While Nomura on the other hand downgrades Sun TV to a Neutral stance, as the company’s Q4 largely in-line but the brokerage sees a lack of catalysts. It added, advertising recovery slower, the success of TV genres, OTT critical, while setting a target of Rs 601 per share for the coming days. 

Sun TV Networks on Friday reported a consolidated profit of Rs 488 crore for the March-ended quarter in FY21 as compared to Rs 245.23 crore in the same period a year ago. While it reported revenue from operations stood at Rs 802.55 crore in Q4 FY21 against Rs 758.13 crore YoY.  

Sun TV in its filing to the exchanges said, the COVID-19 pandemic and the consequent lockdown have impacted the regular business operations of the Group and, results for the quarter and year ended March 31, 2021, are therefore not comparable with those for the earlier periods presented.