Sun TV shares plunge as Citi cuts rating to neutral

Mumbai: Shares of Sun TV Network Ltd slumped more than 7% on Tuesday, after Citigroup downgraded the broadcaster to “neutral” from “buy”, citing a sharp run-up in the stock price in the past six months.

Sun TV shares were still up 32.5% over the past six months on BSE, while shares of rival Zee Entertainment Enterprises Ltd gained 19.7%. The 30-share Sensex rose 4.3% in the same period. Citigroup Global Markets said the stock’s performance prices in the bottoming-out of Sun TV’s ad revenues and potential benefits from digitization of cable TV feed.

“We expect business gains to be more measured hereon,” analysts Surendra Goyal and Aditya Mathur said in a note dated 18 March.

Sun TV shares fell as much as 7.4% on BSE on Tuesday. At 3:24pm, Sun TV shares were trading 5.63% lower at Rs.412.50 while the Sensex shed 1.53% to 18,998.60 points.

 

Priya

PGDM 2nd sem.