Sun TV Network Ltd. is Rated Sell

Current Rating and Its Significance

MarketsMOJO’s 'Sell' rating for Sun TV Network Ltd. indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment potential in the current market environment.

Quality Assessment

As of 07 January 2026, Sun TV Network Ltd. holds a 'good' quality grade. This reflects the company’s established position in the media and entertainment sector and its consistent operational capabilities. Despite this, the quality grade alone does not offset concerns arising from other parameters. The company’s long-term growth has been modest, with net sales growing at an annualised rate of 7.86% over the past five years, while operating profit growth has been more subdued at 2.17% annually. These figures suggest that while the company maintains operational stability, its growth trajectory is relatively slow compared to sector peers.

Valuation Perspective

The valuation grade for Sun TV Network Ltd. is currently rated as 'fair'. This indicates that the stock is neither significantly undervalued nor overvalued based on prevailing market prices and fundamental metrics. Investors should note that a fair valuation implies limited upside potential from a price perspective, especially when combined with other less favourable factors. The market capitalisation remains in the smallcap category, which can entail higher volatility and risk compared to larger, more established companies.

Financial Trend Analysis

The financial trend for Sun TV Network Ltd. is assessed as 'flat', signalling a lack of meaningful improvement or deterioration in recent financial performance. The latest quarterly results for September 2025 show a decline in key profitability metrics, with profit after tax (PAT) falling by 13.4% to ₹354.33 crores. Operating cash flow for the year is at its lowest level in recent periods, recorded at ₹1,663.08 crores, while the return on capital employed (ROCE) for the half year stands at 17.63%, also at a low point. These indicators highlight challenges in generating robust earnings growth and cash flow, which weigh on investor confidence.

Technical Outlook

From a technical standpoint, the stock is mildly bearish. Recent price movements show a downward trend, with the stock declining 2.2% on the day of analysis and a 3.62% drop over the past week. Over the last year, the stock has delivered a negative return of 15.06%, underperforming the broader BSE500 index across multiple time frames including one year, three years, and three months. This technical weakness suggests limited near-term momentum and potential headwinds for price appreciation.

Performance Summary and Investor Implications

As of 07 January 2026, Sun TV Network Ltd. exhibits a combination of modest quality, fair valuation, flat financial trends, and bearish technical signals. The stock’s subdued growth rates and declining profitability metrics, coupled with underwhelming price performance, underpin the 'Sell' rating. For investors, this rating serves as a cautionary signal to reassess holdings in the stock, particularly if seeking capital appreciation or stable income streams. The current market environment and company fundamentals suggest that alternative investment opportunities may offer better risk-adjusted returns.

Sector and Market Context

Operating within the media and entertainment sector, Sun TV Network Ltd. faces competitive pressures and evolving consumer preferences that impact revenue growth and profitability. The sector itself has witnessed rapid changes due to digital disruption and shifting advertising spends. Against this backdrop, the company’s relatively slow growth and flat financial trends highlight the challenges of maintaining market share and profitability. Investors should consider these sector dynamics when evaluating the stock’s prospects.

Summary of Key Metrics as of 07 January 2026

• Mojo Score: 47.0 (Sell Grade)


• Market Capitalisation: Smallcap


• 1-Day Return: -2.20%


• 1-Week Return: -3.62%


• 1-Month Return: +3.07%


• 3-Month Return: -2.91%


• 6-Month Return: -2.53%


• Year-to-Date Return: -3.62%


• 1-Year Return: -15.06%

What This Means for Investors

Investors should interpret the 'Sell' rating as a recommendation to exercise caution with Sun TV Network Ltd. shares. The combination of flat financial trends, modest growth, and bearish technical signals suggests limited upside potential in the near term. While the company maintains a good quality grade, this is insufficient to offset concerns about valuation and financial momentum. Those holding the stock may consider reviewing their portfolio allocation, while prospective investors might seek more compelling opportunities elsewhere.

Looking Ahead

Going forward, Sun TV Network Ltd. will need to demonstrate stronger revenue growth and improved profitability to alter its current outlook. Investors should monitor upcoming quarterly results and sector developments closely. Any signs of operational turnaround or strategic initiatives that enhance competitive positioning could influence future ratings and market sentiment. Until then, the current 'Sell' rating reflects a prudent stance based on the latest comprehensive analysis.

Conclusion

In summary, Sun TV Network Ltd.’s current 'Sell' rating by MarketsMOJO, last updated on 15 Dec 2025, is supported by a detailed evaluation of quality, valuation, financial trends, and technical factors as of 07 January 2026. The stock’s underperformance relative to benchmarks and subdued financial metrics justify a cautious approach for investors. Staying informed on the company’s evolving fundamentals and market conditions will be essential for making well-informed investment decisions.

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