Shares of Sun TV Network on Monday jumped 11 per cent to Rs 577 on BSE after the media company reported stellar Q3 earnings. The company posted net profit growth of 32 per cent at Rs 351 crore in the quarter ending December 2018. In comparison to the last year quarter, firm s revenue was up 32 per cent at Rs 904.
The stock was trading up 10.37 per cent, or 54 points, at Rs 574.55 on BSE at the time of reporting.
What brokerages say:
The global brokerage has a buy call on SUN TV with a target price at Rs 770. The media firm estimates by 1-4 percent and forecasts 10 percent FY19-21 earnings CAGR. The stock is inexpensive at a 30 percent discount to the five-year average, it said.
The brokerage has a buy call on the company with a target price at Rs 800 apiece as business remained steady and earnings are rebased up in FY19.
Sun TV said in a conference call that it expects double-digit advertising revenue growth in FY20.
“We are garnering around Rs 50 crore revenue from around 1 million subscribers on Sun Nxt, digitisation in Tamil Nadu will get completed by June 2019 and we are setting up a new team and building scale for ramping up Sun Nxt,” the media firm said.
Meanwhile, the 30-share barometer after shuttling between 36,588.41 and 36,300.48 points, finally ended at 36,395.03, down 151.45 points, or 0.41 per cent.
The gauge had lost nearly 429 points in the previous two sessions. The 50-scrip NSE Nifty finished 49.80 points, or 0.50 per cent, down at 10,888.80, after touching a low of 10,857.10 and a high of 10,930.90 during the session.