Sun TV Network surges on heavy volumes

The stock has gained nearly 5% at Rs 385 on back of over three-fold jump in trading volumes.

Shares in Sun TV Network has surged nearly 5% at Rs 385 in noon deals on the BSE, in otherwise subdued market, on back of heavy volumes.

A combined 3.95 million shares representing nearly 4% of free-float equity of the company have changed hands on the counter till 1240 hours on the BSE and NSE.

The stock of the company engaged in broadcasting and cable TV business has underperformed the market by falling 11% in past one month compared to less than 2% decline in benchmark indices. In past one year, it fell 6% against 7% rise in S&P BSE Sensex and 6% gain in CNX Nifty.

Meanwhile, analyst at Edelweiss Securities maintains ‘Buy’ rating on the stock with target price of Rs 470.

“The company is expected to be a big beneficiary of the digitisation process. We expect it to gradually return to high growth as market absorbs ad rate hikes”, said analyst in research report dated November 11.