The broking house CLSA has maintained buy call on Sun TV but cut target to Rs 870 from Rs 1,100.
Share price of Sun TV Network shed 6 percent intraday Monday despite company reported better numbers for the quarter ended September 2018.
The company's Q2FY19 net profit rose 23.4 percent at Rs 351.3 crore versus Rs 284.6 crore in the same quarter last fiscal.
Revenue increased by 10.9 percent at Rs 749.5 crore versus Rs 675.9 crore. Its subscription revenue jumped 21.3 percent.
Operating profit or EBITDA was up 11.7 percent at Rs 554 crore, while margin was up at 73.9 percent.
The company declared an interim dividend of Rs 2.50 per equity share of Rs 5 each (i.e. 50 percent) for the financial year 2018-19.
The broking house CLSA has maintained buy call on Sun TV but cut target to Rs 870 from Rs 1,100. It see a potential upside of 31 percent.
According to firm Q2 results were a mixed bag, the subscriptions growth led by Tamil Nadu. Its investments are going to support ad-revenues.
It still expect Sun TV to deliver 11 percent earnings CAGR over FY19-21.
At 09:45 hrs Sun TV Network was quoting at Rs 628, down Rs 35.40, or 5.34 percent on the BSE.
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