SUNTV - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.7

📺 Sun TV Network Ltd (SUNTV) offers strong profitability, low debt, and attractive dividend yield, but valuation compression and weak growth indicators suggest a cautious accumulation strategy.

📈 Positive

• 💰 Attractive Valuation: P/E of 13.1 is well below the industry average of 21.0.
• 📊 Strong Return Metrics: ROCE of 20.4% and ROE of 15.7% reflect efficient capital deployment.
• 💸 Dividend Yield: 2.67% offers consistent income for shareholders.
• 📉 Low Leverage: Debt-to-equity ratio of 0.01 ensures financial stability.
• 📈 EPS Strength: ₹41.5 supports long-term earnings visibility.

⚠️ Limitation

• 📉 PEG Ratio: 4.25 suggests valuation may not be supported by growth.
• 📉 Profit Decline: Qtr Profit Var of -3.34% indicates earnings pressure.
• 📉 Technical Weakness: Trading below both 50 DMA and 200 DMA.
• 📉 Volume Drop: Current volume significantly below weekly average.
• 📉 Institutional Outflows: FII and DII holdings declined, signaling reduced confidence.

📉 Company Negative News

• Stock down nearly 28% from 52-week high, reflecting valuation compression.
• Decline in institutional holdings and weak technical indicators.

📈 Company Positive News

• Strong quarterly PAT of ₹529 Cr. despite sector headwinds.
• Diversified media portfolio with dominance in South Indian TV and digital content.
• Positive MACD and neutral RSI suggest potential for technical recovery.

🏭 Industry

• Media and entertainment sector benefits from rising digital consumption and regional content demand.
• Industry P/E of 21.0 reflects moderate valuation norms.
• Peers include Zee Entertainment, Network18, and TV18 Broadcast.

🧾 Conclusion

• 📉 Entry Zone: ₹530–₹550 could be a favorable accumulation range based on RSI and support levels.
• 📈 Long-Term View: Hold for 2–4 years; strong fundamentals and content leadership support recovery potential.
• 🔍 Valuation Watch: Consider phased entry or wait for volume and earnings momentum to improve.