Neutral Sun TV Network; target of Rs 590: Motilal Oswal

What happened

Motilal Oswal reported that Sun TV Network’s revenue fell about 31% year over year in 2QFY27, mainly because the previous-year quarter included revenue from the movie Coolie. Advertising revenue declined about 14%, subscription revenue grew about 2%, and EBIT fell about 13% to INR3b. The broker reiterated Neutral and set a target of Rs 590.

Confirmed

Global impact / market context

The decline in advertising revenue weighed on operating profit, while modest subscription growth did not offset it. If weak advertising continues, Sun TV could face pressure on revenue and profits; the broker’s Neutral rating signals that its assessment does not call for a stronger investment stance.

Analyst inference

The report says the comparison is affected by Coolie-related revenue in the prior-year quarter, making that period a high base. EBIT, meaning profit before interest and tax, fell 13% to INR3b, which Motilal Oswal said was in line with expectations.

Confirmed

What to watch

1. Track whether Sun TV’s advertising revenue stabilizes or declines further, since the report links weaker advertising to lower operating profit and describes continued weakness in broadcasting. Analyst inference
2. Watch subscription revenue growth in upcoming results; the reported 2% increase was modest, so stronger growth could help offset weakness in advertising income. Analyst inference
3. Note that Motilal Oswal values the company using separate estimates for its businesses and investments, and reiterates Neutral with a Rs 590 target. Confirmed

Evidence

• Original source link unavailable