The stock witnessed spurt in volume by more than 1.48 times and was trading with volumes of 123,081 shares, compared to its five day average of 108,804 shares, an increase of 13.12 percent.
Share price of Sun TV Network fell 7 percent intraday on February 17. The company reported a 7.15 percent increase in consolidated profit after tax for the December quarter at Rs 384.69 crore. It had reported profit after tax of Rs 359.01 crore in the October-December period a year ago, Sun TV said in a BSE filing.
However, total income dipped 7.89 percent to Rs 914.17 crore during the quarter under review, as against Rs 992.58 crore in the corresponding period of the previous fiscal.
Subscription revenues for the quarter rose "18 percent at Rs 411.85 crores as against Rs 349.60 crores for the corresponding quarter ended December 2018", Sun TV said in a post-earnings statement.
The stock witnessed spurt in volume by more than 1.48 times and was trading with volumes of 123,081 shares, compared to its five day average of 108,804 shares, an increase of 13.12 percent.
Sun TV Network was quoting at Rs 468.10, down Rs 28.35, or 5.71 percent. It has touched an intraday high of Rs 504.80 and an intraday low of Rs 465.85.
However, brokerage firms have a positive outlook on the stock post its Q3 results:
Macquarie has maintained an outperform rating on the stock with target of Rs 596 per share. It is of the view that the company has a sizeable sequential recovery post a weak Q2 adding that recent market share gain is a key positive.
The firm is of the view that at current market price, the company offers a healthy 4 percent dividend yield and has raised FY20-22 EPS estimates by 2-5 percent on lower taxes.
CLSA has also maintained a buy on Sun TV with target of Rs 600 per share. It is of the view that profit is up 6 percent YoY which is ahead of estimates led by 10 ppt lower tax. It has however cut FY20-22 revenue and EBITDA estimates by 9-13 percent.
Japanese research firm Nomura has also maintained a buy call and has raised target to Rs 731 from Rs 689 per share. The firm has however lowered Ad growth forecasts to -4/4/8 percent over FY20-22 from 0/7/8 percent respectively. It has lower subscription growth to 17/15/6 percent from 21/14/7 percent respectively. Nomura is of the view that buyback will be more tax efficient under new tax regime in FY21.
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