Shares of Sun TV Network Ltd fell as much as 4.36 per cent to Rs 589.4, their lowest in a fortnight. HSBC Global Research has cut Sun TV's price target to Rs 703 from Rs 855; it has maintained “hold” rating.

HSBC said in a note that the biggest worry is the company’s constant declining viewership share; new channel also not getting much traction. Higher investment is required for the company to enter new markets as announced along with investment in digital platform.

Upcoming general elections will also likely create uncertainty over advertising with a majority of TV channels owned by political parties in South India, it said.

About 19 of 24 brokerages covering the stock have “buy” or equivalent rating, three have “hold” while two rated stock a ”sell”; their median price target is Rs 841, according to Refinitiv data.

Over 2.4 million shares changed hands vs 30-day average of about 1.6 million shares. The stock posted biggest intra-day percentage drop since November 5. Sun TV has a forward PE of 17.49, slightly above sector median of 17.27.

Related Topics