Sun TV Network Shares Fall: Sun TV’s stock dropped by 12% on Monday after the company reported disappointing earnings for the April-June quarter. The stock closed at ₹819.5, down 10.6% from the previous day.
Earnings Miss: Sun TV’s profit for the quarter fell by 5.5% to ₹560 crore compared to the same period last year, and revenue dropped by 2.7% to ₹1,312.4 crore. Analysts believe that these results do not justify the recent rise in the stock’s value.
Analyst Downgrades: Karan Taurani, a media analyst at Elara Capital, said the stock’s decline is due to poor performance and increased valuations after a 50% rise in the last six months. Elara Capital downgraded the stock from ‘buy’ to ‘reduce’ with a target price of ₹860.
Further Insights: Dharan Shah, founder of Tradonomy.com, noted that Sun TV has missed its usual profit margins and seen a revenue decline across all segments. Shah suggests waiting for the stock to drop to support levels of ₹785 and ₹580 before considering a buy.
Mixed Recommendations: While Motilal Oswal Financial Services downgraded Sun TV to ‘neutral’ with a target price of ₹860, JM Financial maintained a ‘buy’ rating, setting a higher target price of ₹1,180, predicting a potential 44% upside.
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