Motilal Oswal Financial Services (MOFSL) has revised the target price for Sun TV Network to ₹600 from ₹625 while retaining a ‘Neutral’ rating, indicating a muted outlook amid ongoing challenges in advertising revenue recovery. The revised target implies a limited upside of about 7% from the current market price of ₹560.50.
According to the brokerage, Sun TV reported a weak start to FY26, and the recovery in ad revenues remains critical for future growth. Despite this, EBITDA is expected to stay steady across FY25–28E, even as margin pressure continues to weigh on earnings.
Motilal Oswal has also factored in a 3–4% cut in FY26–27E EBITDA, citing subdued ad revenue and high operating expenses. As a result, PAT estimates have been reduced by 5–8% for the same period.
The stock is currently valued at ~13x one-year forward P/E, which is ~20% below its historical average, reflecting investor caution.
Disclaimer: The views and recommendations expressed by Motilal Oswal are their own and do not represent the opinion of this publication. Investors are advised to consult a certified financial advisor before making any investment decisions.
