Sun TV Network Ltd - Digitization play, Initiate with BUY - Emkay

Reco: BUY
CMP: Rs 381
Target Price: Rs 530

- Broadcasters to be key beneficiaries of the ongoing digitization, with a significant jump in subscription revenue

- Improving subscriber declaration, higher revenue share from MSOs, and growth in ARPU to trigger a potential upside of Rs6.6bn in Sun TV's domestic subscription revenue

- Sun's de-risked business model and leadership position would continue to drive ad growth going forward

- Promising growth-drivers, potential revenue triggers from ongoing digitization and inexpensive valuations. We initiate BUY with a TP of Rs530 (incl. Rs95/share NPV of incremental subscription revenue potential)

Source : Equity Bulls

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