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After dropping nearly by 10% on Thursday, following arrest of former Telecom Minister Dayanidhi Maran's close aide and two others (from Sun TV) in an illegal telephone exchange case, shares of Sun TV Network rose by 1.25% on the BSE on Friday.
Dayanidhi Maran's brother is the promoter of Sun Television Network (Sun TV), one of the largest TV networks in the country.
Despite several negative reports, including the CBI questioning the Marans on the Aircel Maxis deal and political developments, investors and analysts remain bullish on Sun TV - which is riding the digital TV boom in the country.
The company's stock price, which was Rs 356.85 a share a year ago, was trading at Rs 388.45 on Friday morning - up almost 9.18%. However, it was lower by nearly 7% compared to January 16 (Rs 418), the day when Kalanithi Maran announced his exit from SpiceJet.
In the last three months, the stock gained 27.3% while the BSE Sensex was up 8.5%.
In the last three months, the stock gained 27.3% while the BSE Sensex was up 8.5%.
The stake sale in SpiceJet allayed investors' worries that Sun TV's cash would be used to fund the troubled air carrier. Whether it was a profitable exit is still not known. In 2010, Kalanithi Maran had acquired over 37% stake in the budget carrier for around Rs 750 crore and gradually increased his holding to 53.5% by infusing funds to the tune of around Rs 550 crore into the airline by the way of equity. Reports stated Maran and Kal Airways will continue to hold 10% stake in the airline following the conversion of their warrants.
Speaking to CNBC TV18, Gaurang Shah, VP at Geojit BNP Paribas financial Services said: "We have a positive coverage on Sun TV Network. Our targets were somewhere close to about Rs 425 to 435, which I believe was achieved from a medium to long-term time horizon."
"We need to wait for the numbers for the clarity to emerge. Undoubtedly this is one of the largest player down south in entertainment segment. As of now hold on to it and somewhere close to about Rs 420-435-440 odd levels you can take money off the table," he added.
