⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SUNTV - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | SUNTV | Market Cap | 23,733 Cr. | Current Price | 602 ₹ | High / Low | 691 ₹ |
| Stock P/E | 14.7 | Book Value | 306 ₹ | Dividend Yield | 2.50 % | ROCE | 20.4 % |
| ROE | 15.7 % | Face Value | 5.00 ₹ | DMA 50 | 578 ₹ | DMA 200 | 583 ₹ |
| Chg in FII Hold | -0.24 % | Chg in DII Hold | 0.45 % | PAT Qtr | 320 Cr. | PAT Prev Qtr | 350 Cr. |
| RSI | 54.4 | MACD | -0.04 | Volume | 3,06,028 | Avg Vol 1Wk | 2,32,794 |
| Low price | 480 ₹ | High price | 691 ₹ | PEG Ratio | 4.77 | Debt to equity | 0.01 |
| 52w Index | 57.5 % | Qtr Profit Var | -7.94 % | EPS | 39.0 ₹ | Industry PE | 16.3 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT declined from ₹350 Cr. to ₹320 Cr. (-7.94%), showing short-term earnings pressure.
- Margins: ROE at 15.7% and ROCE at 20.4% reflect solid profitability and efficient capital use.
- Debt: Debt-to-equity ratio of 0.01 indicates negligible leverage, ensuring financial stability.
- Cash Flow: Strong due to consistent broadcasting revenues and high dividend payout capacity.
💹 Valuation Indicators
- P/E Ratio: 14.7 vs Industry PE of 16.3 → slightly undervalued compared to peers.
- P/B Ratio: Current Price ₹602 vs Book Value ₹306 → ~1.97x, reasonable for a media leader.
- PEG Ratio: 4.77 → indicates overvaluation relative to growth prospects.
- Intrinsic Value: Estimated fair value near ₹570–590, suggesting current price is slightly above fair value.
📺 Business Model & Competitive Advantage
- Leading South Indian broadcaster with strong regional dominance.
- Revenue streams from TV broadcasting, digital platforms, and content syndication.
- Competitive advantage lies in brand loyalty, regional content strength, and diversified media presence.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive between ₹570–590, closer to intrinsic value.
- Long-Term Holding: Suitable for dividend-seeking investors; stable business but growth outlook is moderate.
✅ Positive
- Strong ROCE (20.4%) and ROE (15.7%) highlight profitability.
- Debt-to-equity ratio of 0.01 ensures financial stability.
- DII holdings increased (+0.45%), showing domestic institutional confidence.
⚠️ Limitation
- Quarterly PAT decline (-7.94%) indicates earnings pressure.
- PEG ratio of 4.77 suggests overvaluation relative to growth.
- Limited scalability compared to pan-India or global media players.
📉 Company Negative News
- Decline in quarterly profits due to rising content costs.
- FII holdings decreased (-0.24%), showing reduced foreign investor interest.
📈 Company Positive News
- Strong dividend yield of 2.50% supports investor returns.
- DII holdings increased, reflecting domestic confidence.
- Stable broadcasting revenues with strong regional dominance.
🏭 Industry
- Media industry is competitive, driven by advertising revenues and digital transformation.
- Industry PE at 16.3 shows moderate valuation compared to SUNTV’s slightly lower P/E.
- Shift toward digital streaming platforms poses both challenges and opportunities.
🔎 Conclusion
SUNTV remains a strong regional broadcaster with solid profitability, negligible debt, and attractive dividend yield. However, declining quarterly profits and high PEG ratio limit near-term growth potential. Entry around ₹570–590 offers better risk-reward. Long-term investors can hold for stable dividends and regional dominance, but growth prospects remain moderate compared to digital-first peers.