Pradeep Carpenter
15 Oct • 6:37 AM · SEBI-Registered Analyst
Sun TV Rallies as IPL Franchise Valuations Rise
Sun TV Network gained 2.68% to close at ₹653.10, with investors focusing on the rising valuation of its sports franchises, particularly Sunrisers Hyderabad (SRH). Brokerage firm Elara Capital has retained its Buy rating and raised its target price to ₹925 from ₹780, citing the value of its sports assets and strong cash generation. [Source: Business Standard]
Fundamental Trigger
Recent high-value IPL franchise transactions have strengthened valuation benchmarks for established teams. Elara estimates that Sun TV's sports franchises, including SRH, Sunrisers Eastern Cape and Sunrisers Leeds, account for approximately 45% of its sum-of-the-parts equity valuation.
The brokerage also highlighted the company's cash-generative television business and increased its FY28–FY29 revenue and earnings estimates by 4%, partly reflecting higher movie revenue.
Technical View
Sun TV is trading near ₹653, with immediate resistance at ₹662–663 and the next major level at ₹693. RSI near 77 indicates overbought momentum, while MACD remains positive. A sustained breakout above ₹663 with strong volume could strengthen the bullish setup.
My View
The rising valuation of Sun TV's sports portfolio is an important fundamental narrative supporting investor interest. However, reports of a possible sports-business demerger remain unconfirmed, and the company previously described such reports as market rumours. Technically, the ₹662–663 zone remains crucial for breakout confirmation.
Disclosure: The analyst or his family does not have any position in the stock discussed at the time of publication.
