Mehabe score: 4 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Sun TV Network is engaged in producing and broadcasting satellite television and radio software programming in the regional languages of South India.
Main Points
This is one of the Asia’s largest TV networks. This was established by Kalanidhi Maran in the year 1993. Its flagship channel is Sun TV, which was the first fully privately owned Tamil channel in India. After which it has grown huge and currently owns and operates 32 TV channels across Indian languages – Tamil, Telugu, Kannada, Malayalam and Bengali.Site:SUNTV
Market Cap:
Rs 20,910 cr
Price:
531.0
Trading pe:
13.7x
Book-value:
145/share
Div yield:
4.71 %
Earning yield:
8.55%
Face-value:
5.00/share
52week high:
570.70
52week low:
368.00
Technical Analysis
Stock trades at 531.0, above its 50dma 510.96. It also trades above its 200dma 482.8. The stock remains bullish on techicals
The 52 week high is at 570.70 and the 52week low is at 368.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 25.46%
– has been maintaining a healthy dividend payout of 34.89%
Weakness
– The company has delivered a poor sales growth of 5.13% over past five years.
– has high debtors of 157.08 days.
Competition
– The industry trades at a mean P/E of 24.4x. Saregama India trades at the industry’s max P/E of 39.48x. SUNTV trades at a P/E of 13.7x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 7.0. SUNTV has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 17.7%. The max 1- month return was given by Saregama India: a return of 31.19 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 803.0 cr compared to Rs 758.0 cr for period ended Mar 2020, a rise of 5.9%
Operating Profits reported at Rs 551.0 cr for period ended Mar 2021 vis-vis 502.0 for period ended Mar 2020 .
Operating Margins expanded 239.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 12.37 compared to Rs 11.31 for previous quarter ended Dec 2020 and Rs 6.22 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3177.0 cr for period ended Mar 2021 vis-vis sales of Rs 3520.0 cr for the period ended Mar 2020, a fall of 10.8%. The 3 year sales cagr stood at 2.4%.
Net Profit reported at Rs 1525.0 cr for period ended Mar 2021 vis-vis sales of Rs 1385.0 cr for the period ended Mar 2020, rising 9.2%.
Company recorded a healthy Net Profit CAGR of 10.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 27.0% compared to 25.0% over the last 3 Years. – The stock has given a return of 38% on a 1 Year basis vis-vis a return of -17% over the last 3 Years. – The compounded sales growth on a TTM bassis is -10% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 20% vis-vis a compounded profit growth of 11% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 8.98% vis-vis 9.44% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 11.97% vis-vis 10.53% for Dec 2020
Conclusion
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 25.46%
– has been maintaining a healthy dividend payout of 34.89% – The company has delivered a poor sales growth of 5.13% over past five years.
– has high debtors of 157.08 days.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 510.96 and is trading at 531.0, thus bullish price action wise.
