Shares of Sun TV Network plunged over 5 per cent on Monday even as the media and entertainment company earned a higher profit for April-June.
The firm reported a 62.59 per cent year-on-year (YoY) growth in net profit at Rs 409.14 crore for the quarter to June.
It had posted a net profit of Rs 251.64 crore in the same quarter last year.The scrip was trading 5.37 per cent down at Rs 783 at around 11.05 am.
The BSE Sensex came down 206 points, or 0.55 per cent, to 37,662 at around the same time.Revenue jumped 42.48 per cent YoY to Rs 1,120.39 crore for the quarter under review.Axis Capital maintained Buy on Sun TV with a target price of Rs 1,200.
Ad revenue growth remains strong and dependence on the TN cluster has declined.
Subscription revenue growth trend and full benefits from Arasu are yet to come in.
Sun TV intends to increase the payout, going ahead, Axis Capital said.IDFC Securities retained Outperform rating on Sun TV, but cut target price to Rs 979 from Rs 1,124 earlier.
Cut estimates to factor in entry into new markets and launch of flanking channels, the brokerage house said.