Sun TV Q4 Results Review - Core Business Lags, Revival In It Key For Rerating: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Sun TV Network Ltd.'s Q4 FY24 results showed weak performance in its core business, with muted revenues and rising costs. However, IPL revenue and other income aided profit after tax, both in Q4 and FY24. In Q4 FY24, core business revenue/ Ebit/APAT were +1.8/-15.2/-2.7%YoY and FY24 at 3.4/-3.5/+0.7% YoY. Sun’s strong balance sheet with C&CE of ~Rs 70 billion (~27% of Mcap) and leadership in Tamil market provides a sense of comfort. But low-growth in core business and under-investment in digital (though has paid-off till now) are constraints from future proofing the business and/or growth perspective. Additionally, a low dividend payout raises fears of capital misallocation. These are constraining factors for re-rating. That said, potential industry tailwinds viz. supportive base, growth revival and sector consolidation are potential positives. Sun is trading at 13.6/13.7/13.9x FY24/25/26E EPS. We expect earnings to decline on account of increasing costs and higher amortization costs led by changes in accounting policies and likely slowdown in incremental revenues from IPL. We alter our FY25/26E EPS by 1.7/-4%. Downgrade to ‘Reduce’ rating from Buy with target price of Rs 720 at15 times FY26E EPS (versus Rs 750 at 15 times FY26E). .Click on the attachment to read the full report:.Sun TV Q4 Results: Profit Rises 9% To Rs 414.9 Crore.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Sun TV Q4 Results Review - Core Business Lags, Revival In It Key For Rerating: Dolat Capital

Healthy free cash flow and C&CE, low dividend payout

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Sun TV Q4 Results Review - Core Business Lags, Revival In It Key For Rerating: Dolat Capital

Healthy free cash flow and C&CE, low dividend payout

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