SUNTV - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | SUNTV | Market Cap | 19,187 Cr. | Current Price | 486 ₹ | High / Low | 662 ₹ |
| Stock P/E | 13.1 | Book Value | 313 ₹ | Dividend Yield | 3.08 % | ROCE | 16.6 % |
| ROE | 12.4 % | Face Value | 5.00 ₹ | DMA 50 | 572 ₹ | DMA 200 | 583 ₹ |
| Chg in FII Hold | 0.17 % | Chg in DII Hold | 0.27 % | PAT Qtr | 267 Cr. | PAT Prev Qtr | 320 Cr. |
| RSI | 26.7 | MACD | -24.9 | Volume | 15,01,027 | Avg Vol 1Wk | 4,98,469 |
| Low price | 480 ₹ | High price | 662 ₹ | PEG Ratio | -3.60 | Debt to equity | 0.01 |
| 52w Index | 3.47 % | Qtr Profit Var | -36.0 % | EPS | 35.4 ₹ | Industry PE | 25.4 |
📊 Core Financials
- Revenue & Profit: Quarterly PAT ₹267 Cr. vs ₹320 Cr. previous quarter, showing decline and earnings pressure.
- Margins: ROE at 12.4% and ROCE at 16.6% indicate moderate efficiency.
- Debt: Debt-to-equity ratio of 0.01 reflects negligible leverage, very healthy balance sheet.
- Cash Flow: Stable due to strong media operations, though profit volatility is evident.
💹 Valuation Indicators
- P/E Ratio: 13.1 vs Industry PE of 25.4 — trades at a discount, suggesting undervaluation.
- P/B Ratio: Price ₹486 vs Book Value ₹313 → ~1.55x, reasonable valuation.
- PEG Ratio: -3.60 indicates weak growth outlook.
- Intrinsic Value: Appears undervalued, but growth concerns limit upside.
📺 Business Model & Advantage
Sun TV Network operates in broadcasting, digital content, and regional entertainment. Its competitive advantage lies in strong regional dominance, high viewership, and diversified media presence. However, advertising revenue dependency and competition from OTT platforms pose challenges.
📈 Technicals & Entry Zone
- RSI at 26.7 indicates oversold territory.
- MACD negative (-24.9) suggests short-term weakness.
- Entry Zone: Attractive accumulation around ₹460–₹480 range.
- Long-term Holding: Suitable for dividend-seeking investors, but growth outlook is limited.
✅ Positive
- Low debt-to-equity ratio (0.01).
- Dividend yield of 3.08% provides steady income.
- Strong regional dominance in broadcasting.
⚠️ Limitation
- Quarterly profit decline from ₹320 Cr. to ₹267 Cr.
- PEG ratio (-3.60) signals weak growth prospects.
- High competition from OTT platforms.
📰 Company Negative News
- Profit variation negative (-36%).
- Advertising revenue under pressure due to digital competition.
🌟 Company Positive News
- FII (+0.17%) and DII (+0.27%) holdings increased.
- Strong dividend yield supports investor confidence.
- Continued dominance in regional broadcasting markets.
🏭 Industry
Media industry PE at 25.4 reflects higher valuations compared to Sun TV’s 13.1. The sector is undergoing digital transformation, with OTT platforms reshaping consumer behavior. Traditional broadcasters face challenges but retain strong regional influence.
🔎 Conclusion
Sun TV shows undervaluation with low P/E and strong dividend yield, but growth prospects are weak due to declining profits and OTT competition. Long-term investors may consider accumulating in the ₹460–₹480 range for dividend income and regional dominance, while being cautious of limited growth potential.
For deeper insights, you could explore a peer comparison or an industry outlook to complement this analysis.