Sun TV Network shares snapped a three-day gaining streak on Thursday, falling more than 2 percent amid profit booking, even as Elara Securities (India) retained its 'buy' rating on the stock and saw nearly 45 percent upside potential. The stock was quoted at ₹623.20 per share on the NSE, down 2.09 percent, tracking the fall in broader markets during the same period. Despite the recent decline, the stock had gained more than 6 percent during the three-day run before Thursday's correction. As per Moneycontrol, the stock continues to trade around 25% lower compared to its lifetime high of ₹842 registered in August 2024, with Thursday's intraday high reaching ₹640 and a low of ₹625 on the NSE. However, Sun TV shares were trading firmly in Friday's session, rising 3.65% to ₹637 per share on October 9, 2026, as reported by LiveMint.
Elara Securities (India) retained its 'buy' rating on Sun TV Network and raised its target price by nearly 19 percent to ₹925 per share from ₹780 earlier. The brokerage factored in the company's cash-generative television business, supported by its portfolio of strong sports franchises. According to Moneycontrol, Elara Securities raised its FY28-FY29 revenue and earnings per share estimates for Sun TV by 4 percent each, factoring in higher movie revenue. The brokerage's valuation includes Sun TV's cash-generative media business valued at ₹12,300 crore using a discounted cash flow approach, representing roughly 15 times its estimated FY28 core media profit after tax. For sports assets, Elara valued SRH at 80 times FY28 estimated profit after tax and SunRisers Leeds at 12 times FY28 sales, broadly in line with comparable companies. The brokerage notes that Sun TV's cricket revenue (SRH and SA20) more than doubled to ₹6,600 crore in FY24 once the new media rights cycle began and was ₹5,600 crore in FY26. Sun TV owned SunRisers Hyderabad (SRH), reached the playoffs in eight out of 14 IPL seasons, winning the title in 2016 and finishing as runner-up in 2018 & 2024.
A key part of Elara's revised valuation argument is the sharp increase in private-market valuations for IPL franchises. The brokerage pointed to the March 2026 transactions involving Rajasthan Royals and Royal Challengers Bengaluru as important benchmarks for valuing established IPL teams. Rajasthan Royals was sold at a valuation of around $1.6 billion, while Royal Challengers Bengaluru was valued at approximately $1.8 billion. According to Elara, these transactions imply valuations of around ₹15,000-16,700 crore for established IPL teams. This provides a fresh reference point for Sun TV's SunRisers Hyderabad franchise, with SRH having reached the IPL playoffs in eight of its 14 seasons, won the tournament in 2016 and finished runners-up in 2018 and 2024. The brokerage believes the private-market transactions have helped establish a much higher valuation floor for IPL franchises, which in turn could unlock value for Sun TV shareholders.
The company's core media business, while no longer a growth engine, remains the group's sustained cash generator, the brokerage said in its report. According to Moneycontrol, advertising and subscription revenue remained flat during FY23-FY26, while advertising revenue declined 6-7 percent annually. The brokerage does not see any major recovery in advertising revenue. However, the core media business continues to earn a margin of over 60 percent and converts more than 75 percent of earnings before interest, taxes, depreciation and amortisation into operating cash. Elara estimated that Sun TV's core media business generated ₹98 billion in free cash flow between FY18 and FY26. Together, these sports franchises now account for around 45% of Elara's sum-of-the-parts equity valuation for Sun TV, with sports franchises -- SunRisers Hyderabad, SunRisers Eastern Cape and SunRisers Leeds -- now accounting for around 45 percent of Elara's sum-of-the-parts equity valuation of the stock.
Sun TV shares have delivered exceptional returns across multiple timeframes, gaining over 6% in the past week and 42% over the past month. As per LiveMint, the stock has advanced 27.5% in the last three months, while its gains stood at 8% over six months and 10% over the past year. The media stock touched its 52-week high of ₹664.60 on September 30, 2026, while its 52-week low stood at ₹447, recorded on September 21, 2026. This strong performance reflects the growing investor interest in Sun TV's diversified business model combining traditional television operations with valuable sports franchises. The stock's recent rally demonstrates market confidence in the company's cash-generative core media business and the potential value unlock from its sports assets portfolio.
