Sun TV Network hits 52-week low as Tamil Nadu to tax DTH services

Sun TV Network tumbled 5.35% at Rs 274 at 12:15 IST on BSE on reports the Tamil Nadu legislative assembly on Wednesday, 14 September 2011, passed a bill to levy entertainment tax on direct-to-home television service providers in the state.

Meanwhile, the BSE Sensex was down 70.69 points, or 0.42%, to 16,638.91.



On BSE, 1.91 lakh shares were traded in the counter as against an average daily volume of 4.10 lakh shares in the past one quarter.

The stock hit a low of Rs 254.90 so far during the day, which is also a 52-week low for the counter. The stock hit a high of Rs 288 so far during the day. The stock had hit a record high of Rs 556.50 on 5 January 2011.

The stock had underperformed the market over the past one month until 14 September 2011, falling 1.80% compared with the Sensex's 0.77% fall. The scrip had outperformed the market in past one quarter, sliding 5.73% as against 8.73% decline in the Sensex.

The large-cap media company has an equity capital of Rs 197.04 crore. Face value per share is Rs 5.

As per the bill passed by the Tamil Nadu legislative assembly on Wednesday, 14 September 2011, direct-to-Home (DTH) television service will be reportedly charged at 30%. This excludes the service tax. Kalanithi Maran owned Sun Direct is one the largest DTH companies in the state. Kalanithi Maran is the promoter of the listed broadcaster Sun TV Network.

Shares of Sun TV Network have been under pressure since May this year after DMK lost the Tamil Nadu state assembly elections to rival AIADMK. Kalanithi Maran, promoter of Sun TV and his brother Dayanidhi, former Textiles minister, are grand nephews of the DMK supremo M Karunanidhi. Jayalalithaa, which runs Jaya TV channels, swept the Tamil Nadu state polls with more than four-fifths majority on 13 May 2011.

The Sun TV stock has fallen 33.21% from Rs 410.25 on 13 May 2011, when the state poll results were announced.

Sun TV Network's net profit rose 9.8% to Rs 187.62 crore on 3.1% increase in net sales to Rs 453.99 crore in Q1 June 2011 over Q1 June 2010.

Sun TV operates and owns 20 television channels in four languages in south India. It also produces and distributes films and owns and runs FM radio stations.