Sun TV scrip hogs limelight as digitisation deadline nears

[Bapun]

MUMBAI, OCT. 15:
Sun TV, the Kalanithi Maran-promoted media group, saw its stock gain 3.9 per cent on the NSE as the Government-mandated digitisation deadline nears.

According to the Telecom Regulatory Authority’s guidelines, cable TV-enabled households across the four metros — Delhi, Kolkata, Mumbai and Chennai — need to install set-top boxes by October 31.

The stock of Sun TV gained 3.9 per cent on Monday to close at Rs 365.70 on the NSE. The 52-week high and low for the stock are Rs 371.35 and Rs 219.4 respectively. The stock has seen strong performance in the last one-month period. Sun TV gained about 12.4 per cent in the last one-month period rising from Rs 324.20 a share to Rs 364.40 a share on the NSE.

“We met the management of Sun TV and remain convinced that it will be a major beneficiary of mandatory digitisation. Also, market leadership in South India augurs well for ad revenue growth in the medium term,” said a report from Enam.

The report also said that the Arasu deal would aid subscription revenue in the near term. The channel plans to move to ‘pay’ from ‘free-to-air’ after the first phase of mandatory digitisation, which would boost revenue.

Business Line : Markets News : Sun TV scrip hogs limelight as digitisation deadline nears