SUNTV - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | SUNTV | Market Cap | 23,866 Cr. | Current Price | 606 ₹ | High / Low | 662 ₹ |
| Stock P/E | 14.8 | Book Value | 306 ₹ | Dividend Yield | 2.48 % | ROCE | 20.4 % |
| ROE | 15.7 % | Face Value | 5.00 ₹ | DMA 50 | 599 ₹ | DMA 200 | 589 ₹ |
| Chg in FII Hold | 0.17 % | Chg in DII Hold | 0.27 % | PAT Qtr | 320 Cr. | PAT Prev Qtr | 350 Cr. |
| RSI | 49.5 | MACD | 3.14 | Volume | 5,36,321 | Avg Vol 1Wk | 4,51,212 |
| Low price | 480 ₹ | High price | 662 ₹ | PEG Ratio | 4.80 | Debt to equity | 0.01 |
| 52w Index | 69.0 % | Qtr Profit Var | -7.94 % | EPS | 39.0 ₹ | Industry PE | 20.4 |
📊 SUNTV (Sun TV Network Ltd.) demonstrates strong fundamentals with ROCE of 20.4% and ROE of 15.7%, supported by a very low debt-to-equity ratio (0.01). The company offers an attractive dividend yield of 2.48% and trades at a P/E of 14.8, below the industry average of 20.4, suggesting valuation comfort. However, earnings momentum has slowed with a quarterly PAT decline (-7.94%) and a high PEG ratio (4.80), indicating limited growth relative to valuation. Technicals show stability near 50 DMA (₹599) and 200 DMA (₹589), providing a balanced entry point.
💰 Ideal Entry Price Zone: ₹590 – ₹610 (aligned with DMA support and valuation comfort).
📈 Exit / Holding Strategy: Hold for 3–5 years; consider partial profit booking near ₹650–₹660 resistance. Long-term investors should monitor earnings growth closely due to slowing profit momentum.
✅ Positive
- Strong ROCE (20.4%) and ROE (15.7%) highlight operational efficiency.
- Dividend yield of 2.48% provides attractive income support.
- Low debt-to-equity ratio (0.01) ensures financial stability.
- Institutional interest with FII (+0.17%) and DII (+0.27%) increases.
- Valuation comfort with P/E (14.8) below industry average (20.4).
⚠️ Limitation
- PEG ratio of 4.80 suggests limited growth relative to valuation.
- Quarterly PAT decline (-7.94%) raises concerns about earnings momentum.
- EPS of ₹39.0 is modest compared to industry leaders.
- RSI at 49.5 indicates neutral momentum.
📉 Company Negative News
- Quarterly PAT dropped from ₹350 Cr to ₹320 Cr.
- Growth metrics show slowing momentum despite strong fundamentals.
📈 Company Positive News
- Strong ROCE and ROE highlight operational efficiency.
- Dividend yield of 2.48% adds stability for income-focused investors.
- Institutional investors increased holdings, signaling confidence.
🏭 Industry
- Media and broadcasting industry benefits from rising digital consumption and advertising demand.
- Industry PE of 20.4 suggests moderate valuation compared to SUNTV’s lower P/E of 14.8.
🔎 Conclusion
SUNTV is a fundamentally strong company with efficient ROCE and ROE, attractive dividend yield, and low leverage. Entry around ₹590–₹610 offers better risk-reward. Existing investors should hold for 3–5 years, with profit booking near resistance levels around ₹650–₹660. While valuations are fair, growth prospects appear limited, making SUNTV more suitable for stable income-focused long-term investors rather than aggressive growth seekers.