 "Sun TV Network nears 52-week high as exit polls shows DMK to win TN")
Sun TV Network has surged 10% to Rs 434 on the BSE in early trade as exit polls indicate that the Dravida Munnetra Kazhagam (DMK) alliance is likely to win in Tamil Nadu (TN) state assembly election.
The stock currently trading close to its 52-week high of Rs 436 touched on January 1, 2016 during intra-day trade. The trading volumes on the counter jumped more than five-fold with a combined 2.58 million shares changed hands on the BSE and NSE till 09:43 am.
Sun TV Network owner, Kalanithi Maran is the grand nephew of M. Karunanidhi. As on March 31, 2016, Kalanithi Maran owns 75% stake in Sun TV Network.
According to Elara Capital, DMK's electoral victory could help the company get over its bad patch in operations, which were adversely affected with the rise of state-owned Arasu Cable that caused content fees payout to fall by one-fourth.
“Peers Jaya TV and Vijay TV were able to buy significant satellite rights of movies, which otherwise would have been bought by SUNTV. A DMK win also can influence digitization policy. Our analysis shows digitization could double domestic cable subscription revenue,” the brokerage said in a report dated May 12, 2016.
The stock currently trading close to its 52-week high of Rs 436 touched on January 1, 2016 during intra-day trade. The trading volumes on the counter jumped more than five-fold with a combined 2.58 million shares changed hands on the BSE and NSE till 09:43 am.
Sun TV Network owner, Kalanithi Maran is the grand nephew of M. Karunanidhi. As on March 31, 2016, Kalanithi Maran owns 75% stake in Sun TV Network.
According to Elara Capital, DMK's electoral victory could help the company get over its bad patch in operations, which were adversely affected with the rise of state-owned Arasu Cable that caused content fees payout to fall by one-fourth.
“Peers Jaya TV and Vijay TV were able to buy significant satellite rights of movies, which otherwise would have been bought by SUNTV. A DMK win also can influence digitization policy. Our analysis shows digitization could double domestic cable subscription revenue,” the brokerage said in a report dated May 12, 2016.
