CLSA has maintained a hold rating on Sun TV Network while cutting the target price to ₹670 per share, down from previous estimates. The revised target suggests a limited upside from its current market price (CMP) of ₹628.65.
The brokerage noted that Q3 standalone revenue came in below expectations, primarily due to a decline in advertising revenue. Additionally, subscription revenue growth remained weak at just 2% year-on-year, indicating sluggish subscriber additions.
Another factor impacting Sun TV’s margins was the continued investment in Sun Neo, the company’s Hindi channel, which weighed on profitability. However, on the expansion front, Sun TV successfully secured a franchise in a UK-based cricket league, which could contribute to long-term brand value and revenue diversification.
With the revised target price of ₹670, the upside from current levels is approximately 6.5%, reflecting near-term revenue challenges and higher operational costs.
(Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Investors are advised to do their own due diligence before making any investment decisions.)