Thakur
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The Sun TV Network scrip is down 16 per cent over the past year, on account of slowing growth in advertising revenue, rising
competition and the Central Bureau of Investigation (CBI) chargesheet against the company’s promoter in the telecom spectrum
case.
Further, extension of the deadline for implementation of digitisation (phase III to end-2015 and phase IV to end-2016) has meant the expected gain from the subscription segment (30 per cent of revenue) is likely to be
delayed further.
At Rs 342, the stock trades at 15 times its FY16 earnings estimate, a steep discount to Zee Entertainment’s 27 times. Analysts say the discount is due to increasing competition, the cap on advertisement, structural issues and the pending CBI enquiry.
read more: http://www.business-standard.com/article/companies/sun-tv-hopes-for-ad-spending-recovery-114100200713_1.html
competition and the Central Bureau of Investigation (CBI) chargesheet against the company’s promoter in the telecom spectrum
case.
Further, extension of the deadline for implementation of digitisation (phase III to end-2015 and phase IV to end-2016) has meant the expected gain from the subscription segment (30 per cent of revenue) is likely to be
delayed further.
At Rs 342, the stock trades at 15 times its FY16 earnings estimate, a steep discount to Zee Entertainment’s 27 times. Analysts say the discount is due to increasing competition, the cap on advertisement, structural issues and the pending CBI enquiry.
read more: http://www.business-standard.com/article/companies/sun-tv-hopes-for-ad-spending-recovery-114100200713_1.html