Buy Sun TV Network Ltd. target Rs 1170: Centrum Broking

Centrum Broking has a buy call on Sun TV Network Ltd. with a target price of Rs 1170. The current market price of Sun TV Network Ltd. is Rs 949.0 Time period given by the brokerage is a year when Sun TV Network Ltd. price can reach defined target.
Sun TV Network Ltd., incorporated in 1985, is a large-cap company with a market cap of Rs 37991.73 crore.


Investment rationale by Centrum Broking

We maintain our BUY rating on Sun TV Network with unchaged TP of Rs1170 (28x FY20E EPS). Post the start of digitisation in TN market, we expect the subscriptionrevenues to grow at a healthy rate as the company has signed a deal with ARASU Cable. With more than 9mn homes yet to be digitised, we expect the company to reach full potential by Q3FY19. As the company starts to convert sponsored programming to commissioned programming, we expect the ad volumes to steadily grow while entry into new regional market would aid growth.