If you’re scanning the entertainment sector for a value-rich, mid-cap stock in 2025, Sun TV Network likely makes your shortlist. But before jumping in, let’s break it all down—business model, financials, recent trends, and how it stacks up against peers. This deep dive gives you a full picture to decide if Sun TV fits in your portfolio.
What’s the History Behind Sun TV Network?
Sun TV Network, part of the Sun Group founded by Kalanithi Maran in 1993, is one of India’s largest television networks. It operates 33 channels across four South Indian languages—Tamil, Telugu, Kannada, and Malayalam—reaching over 140 million households in India.
Key Milestones:
- 2006: Sun TV went public and was listed on BSE and NSE.
- 2009: Launched Sun Direct DTH service.
- 2010s: Expanded footprint in FM radio, movies, and IPL team Sunrisers Hyderabad.
- 2023–2025: Diversified digital content strategy and renewed focus on OTT.
What Are Sun TV’s Business Verticals?
It has built a strong ecosystem in the entertainment value chain:
| Segment | Description |
|---|---|
| Broadcasting | TV Channels in Tamil, Telugu, Kannada, Malayalam |
| Digital OTT | Sun NXT, offering original content and TV shows |
| Movie Production | Sun Pictures (produced hits like Beast, Jailer) |
| FM Radio | Owns 48 FM radio stations across India (Red FM, Suryan FM) |
| IPL Franchise | Owns Sunrisers Hyderabad (SRH), a key revenue stream during IPL season |
Why Did Sun TV’s Q4 FY24 Performance Disappoint Investors?
Sun TV’s Q4 results raised some eyebrows:
| Metric | Q4 FY24 | YoY Change |
|---|---|---|
| Net Profit | ₹363.26 Cr | -20% |
| Revenue | ₹827.56 Cr | -10.35% |
| ROCE | 26.2% | – |
| Dividend Yield | 2.69% | – |
| PE Ratio | 14.16 | Lower than peers |
Source: Tijori Finance (as of May 2, 2025)
So, why the dip in performance? Analysts point to declining advertisement revenues in linear TV, increased costs from movie production, and lag in OTT monetization.
How Has Sun TV Stock Performed Historically?
- Listing Price (2006): ~₹875 (adjusted for splits)
- 52-Week High (2024): ₹685
- Current Price (May 2, 2025): ₹627.55
- 5-Year CAGR: ~7.5%
Despite moderate growth, Sun TV has delivered consistent dividends and remained profitable even during industry slowdowns.
Who Are Sun TV’s Industry Peers—and How Does It Compare?
Let’s look at the peer group in entertainment and electronic media:
| Company | CMP (₹) | P/E | ROCE % | Qtr Profit Var % | Market Cap (₹ Cr) |
|---|---|---|---|---|---|
| Sun TV Network | 627.55 | 14.16 | 26.20 | -20.00% | 24,730.79 |
| Saregama India | 531.50 | 51.84 | 19.60 | 19.32% | 10,258.45 |
| Zee Entertainment | 106.45 | 17.27 | 6.26 | 251.17% | 10,224.75 |
| PVR Inox | 956.50 | — | 4.69 | 177.34% | 9,392.86 |
| Tips Industries | 626.20 | 48.07 | 112.44 | 18.83% | 8,004.83 |
| Prime Focus | 113.65 | — | -0.72 | -8.84% | 3,409.34 |
Sun TV leads in profitability and ROCE but lags in growth momentum. It trades at a lower PE, suggesting value for long-term investors.
What’s New in 2025 for Sun TV?
- Sun NXT Revamp: Revamped Sun NXT to expand across North India with dubbed Hindi content.
- New Movie Launches: Jailer sequel in pipeline with ₹150+ Cr budget.
- IPL Impact: Sunrisers Hyderabad entered playoffs in IPL 2025, boosting ad revenues.
- Ad Spend Recovery: With elections in full swing, ad revenues are seeing an uptick.
What Are Sun TV’s Future Plans?
- OTT Focus: Increased investment in Sun NXT with exclusive web shows.
- Regional Expansion: Launching Bengali and Marathi TV channels.
- Digital Ads: Targeting digital ad monetization with AI-powered video targeting.
- IP Strategy: Looking to license successful movies/shows globally.
These moves align with the evolving consumption pattern of Indian audiences.
What Are the Risks or Pitfalls of Investing in Sun TV?
| Risk Area | Explanation |
|---|---|
| Linear TV Decline | Viewership and ad revenues are slowly moving away from TV to digital |
| OTT Competition | Faces tough competition from Hotstar, Netflix, JioCinema |
| IPL Uncertainty | Performance-based revenue makes it a volatile segment |
| Dependency on Tamil Market | High revenue concentration from one regional market |
What Do Analysts Say About Sun TV?
- Motilal Oswal: Neutral call with a price target of ₹645.
- ICICI Direct: Buy with long-term view citing high ROCE and undervaluation.
- Nuvama Research: Cautious due to shrinking TV ad market but bullish on Sun NXT’s roadmap.
How Is the Entertainment Sector Performing in 2025?
- Sectoral Shift: OTT revenue is projected to grow at 20% CAGR (PwC India)
- TV Ad Growth: Expected to remain flat; digital to grow by 14%.
- Radio: Stable with slight growth, especially in Tier 2 & Tier 3 cities.
Who Should—and Shouldn’t—Invest in Sun TV?
Ideal For:
- Dividend investors (2.69%+ yield)
- Long-term investors seeking undervalued mid-cap
- Those with faith in Indian regional content consumption
Avoid If:
- You prefer high-growth digital-only companies
- You’re uncomfortable with legacy businesses
- You seek short-term triggers
Is Sun TV a Hidden Gem in 2025?
Sun TV Network presents a rare combination—steady profitability, high ROCE, and consistent dividends—all packed into a mid-cap media company. While its growth is not as flashy as OTT-first platforms, the company is making smart digital pivots and capitalizing on its content strengths.
Its current undervaluation, strong regional moat, and diversified income sources offer a balanced play for value-conscious investors.
Pro Tip: Track Sun NXT’s subscriber growth and IPL franchise monetization—it might determine future upside potential.
Sources:
- Tijori Finance
- Moneycontrol
- Screener.in
- Groww
- Sun TV Network Annual Report FY24
This analysis is informational only and is not investment advice. Please consult a certified financial advisor before making investment decisions.
We have done a similar analysis of Nifty 500 stocks, some related to auto companies like Mahindra & Mahindra, some considering their broad market movements like SBI Life Insurance, post-market summaries, static topics like VIX and much more. So, subscribe and become a mindful investor.
We have also covered other Tata companies like TCS, Titan and more on the way!
