SUNTV - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.7

📊 Core Financials Analysis

Profitability

Quarterly PAT: ₹413 Cr vs ₹363 Cr — stable performance, though Qtr Profit Var is flat (−0.34%).

ROE: 15.7% and ROCE: 20.4% — strong returns, indicating efficient capital use.

EPS: ₹43.2 — solid earnings relative to current price.

Debt & Liquidity

Debt-to-equity: 0.01 — virtually debt-free, excellent financial health.

Dividend Yield: 2.92% — attractive for income-focused investors.

📉 Valuation Indicators

Metric Value Insight

P/E Ratio 13.0 Significantly undervalued vs industry PE of 23.7

P/B Ratio ~1.94 Reasonable, reflects fair asset pricing

PEG Ratio 3.32 Overvalued when adjusted for growth — caution on future upside

Intrinsic Value Likely > ₹574 Strong earnings and low P/E suggest undervaluation

🧠 Business Model & Competitive Advantage

SUNTV is a leading media and entertainment company with dominance in South Indian television broadcasting.

Strengths

Strong regional brand and content library

High operating margins and cash generation

Low debt and consistent dividend payout

Weaknesses

Limited digital transformation compared to peers

Declining viewership in traditional media

Slight drop in DII holdings (−0.10%)

📌 Entry Zone Recommendation

RSI: 42.0 — approaching oversold, potential accumulation zone.

MACD negative — bearish momentum, wait for reversal.

Support Range: ₹520–₹550 is a favorable entry zone for value investors.

Avoid chasing above ₹600 unless digital growth accelerates.

🕰️ Long-Term Holding Guidance

Good value pick for long-term investors seeking dividends and stability.

Potential upside if company pivots effectively to digital platforms.

Monitor OTT strategy, ad revenue trends, and content monetization.

Accumulate on dips and hold for 2–3 years for re-rating potential.

Would you like a peer comparison with Zee Entertainment or Network18 to explore sector dynamics?

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