Sun TV Network soars on heavy volumes

The stock rallied 10% to Rs 411 on National Stock Exchange.

Shares of Sun TV Network has soared 10% to Rs 411 on National Stock Exchange (NSE) on back of heavy volumes after promoters sold out of its group company SpiceJet to co-founder Ajay Singh.

SpiceJet, after market hours on Thursday, announced its decision to transfer the ownership, management and control of the company to co-founder Ajay Singh from Sun Group chairman Kalanithi Maran and Kal Airways.

The stock of Sun TV Network has opened at Rs 385 and touched a high of Rs 429 on NSE. Till 1009 hours, a combined 2.35 million shares already changed hands against sub one million shares that were traded daily in past two weeks on NSE and BSE.

Meanwhile, foreign institutional investors (FIIs) holding in Sun TV Network has touched a record high to 17.94% at the end of December 2014 quarter, according to shareholding pattern filed by the company. FIIs held 16.84% stake in September 2014 quarter and 15.47% at the end of December 2013 quarter, data shows.

Analyst at BESI Research recommends ‘Buy’ rating on the stock with price target of Rs 460.

“We expect Sun to report improved 3QFY15 financials led by double-digit ad growth as well as double-digit growth in domestic subs revenues. Overall, the double-digit revenue growth after a gap of five quarters should substantially close the gap with Zee”, said analyst in a report dated January 8, 2015.

The board of directors of the company is schedule to meet on January 30, 2015, to consider the unaudited financial results for the quarter ended December 31, 2014 (Q3) and declaration of interim dividend if any, for the financial year 2014-15.