Sun TV prevails

Sun TV jumped 8.6% to Rs 1,424.35, on sustained buying.

As many as 89,150 shares changed hands in the counter on BSE.

A combination of positive announcements such as rates for pay channel, strong Q2 results and launch of more FM radio stations has lifted the stock recently. Market’s recent interest in small-cap and mid-cap shares had aided the stock’s solid move today. From Rs 1,196.75 on 30 October 2006, it has risen 19% in the past nine trading sessions, to current Rs 1,424.35.

At the beginning of this month, Sun TV announced that SUN TV, the flagship channel of the company, will be a pay channel with effect from 2 December 2006. This will add to the revenue of the company. Sun TV is a television broadcaster in South India, and the second largest in India in terms of audience share. The pay channel for the cable operator for SUN TV will be Rs 12 per month, per subscriber.

The company, which also has interests in FM radio business, recently announced commencing operations of three more FM radio channels this month. It has already received licence for 45 FM radio stations and would be top FM radio operator, once these are operational.

For Q2 September 2006, Sun TV’s net profit rose 42.7% to Rs 47.96 crore. Net sales rose 17.7% to Rs 94.47 crore.