SUNTV - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.9

📊 Core Financials Overview

Profitability

ROE of 15.7% and ROCE of 20.4% reflect strong capital efficiency and operational performance.

EPS of ₹41.5 supports a low P/E of 13.0, indicating undervaluation relative to the industry average of 21.1.

PAT rose from ₹417 Cr to ₹529 Cr YoY, though QoQ variation is slightly negative (−3.34%), suggesting stable but plateauing earnings.

Balance Sheet Strength

Debt-to-equity ratio of 0.01 — virtually debt-free, a major strength.

Book Value of ₹290 vs Current Price ₹560 → P/B ratio ~1.93, which is reasonable for a media company.

Dividend Yield of 2.68% adds solid income appeal for long-term investors.

Cash Flow & Stability

PEG ratio of 4.24 suggests overvaluation relative to growth, likely due to slower earnings expansion.

RSI at 48.2 and MACD negative indicate neutral-to-weak technical momentum, with potential for consolidation.

📉 Valuation Metrics

Metric Value Insight

P/E Ratio 13.0 Undervalued vs industry PE of 21.1

P/B Ratio ~1.93 Fairly priced

PEG Ratio 4.24 Indicates stretched valuation

Intrinsic Value ~₹520–₹540 Slightly below current price

SUNTV appears fairly valued, with a slight premium due to its strong balance sheet and dividend profile.

📺 Business Model & Competitive Edge

Sector: Sun TV Network Ltd is one of India’s largest media conglomerates, operating satellite television channels across multiple South Indian languages.

Strengths

Dominant regional presence with high viewership and ad revenue share

Strong cash flows and minimal debt

High dividend payout and consistent profitability

Challenges

Slower digital transition compared to peers

PEG ratio suggests limited near-term growth

Slight decline in DII holding may reflect cautious sentiment

According to TopStockResearch, SUNTV’s EV/EBITDA is 8.16, reinforcing its undervaluation, and its operating margins remain robust.

📌 Entry Zone Recommendation

Suggested Entry Range: ₹520–₹540

Below 50 DMA (₹570) and near intrinsic value

RSI and MACD suggest waiting for technical confirmation before entry

🧭 Long-Term Holding Guidance

Hold if Already Invested: Strong fundamentals and dividend yield support long-term stability.

Accumulate on Dips: Especially near ₹520 for better margin of safety.

Watchlist Triggers

EPS growth and digital monetization

Institutional accumulation

Expansion into OTT or new content verticals

SUNTV is a cash-rich media leader with a solid dividend and strong regional dominance. While growth may be modest, its valuation and financial health make it a compelling long-term hold. You can explore more on StockInvest’s fundamental dashboard for deeper insights.

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