14 hrs ago
Elara Raises Sun TV Target as IPL Franchise Values Surge
Elara Securities thinks Sun TV shares could be worth more than they are now.
It raised its target price to ₹925 and kept its buy rating.
Sun TV owns television businesses and sports teams, including SunRisers Hyderabad.
Elara says the sports teams have become an important part of the company’s value.
Recent sales of other IPL teams gave investors new examples of what teams might be worth.
Sun TV’s television business is not growing much, but it still earns cash efficiently.
Elara also increased some of its future revenue and earnings estimates.
The article says Sun TV shares rose on Friday, October 9.
Elara Securities retained its buy rating on Sun TV Network and raised its target price to ₹925 from ₹780, implying 45% upside.
Elara estimates Sun TV’s sports franchises account for around 45% of its sum-of-the-parts equity valuation.
March 2026 transactions valued Rajasthan Royals at about $1.6 billion and Royal Challengers Bengaluru at about $1.8 billion.
Elara says Sun TV’s core media business faces subdued revenue growth but maintains margins above 60% and strong cash generation.
Sun TV shares rose 3.65% to ₹637 on Friday, October 9, according to the article.
- Who
- Sun TV Network and brokerage Elara Securities.
- What
- Elara retained its buy rating and raised its target price for Sun TV to ₹925 from ₹780.
- Where
- The article discusses Sun TV and IPL franchise valuations in India, as well as SunRisers Leeds in The Hundred.
- When
- The article reports Sun TV shares trading on Friday, October 9, and cites franchise transactions from March 2026.
- Why
- Elara cited the value of Sun TV’s sports franchises alongside the cash-generating core media business.
Bullish valuation case
Core-business constraints
Sports franchise value
Bullish valuation case
Elara argues that rising private-market IPL team valuations support a higher value for Sun TV’s sports assets and its ₹925 target.
Core-business constraints
The article does not provide a contrary analyst valuation, but notes that the franchise valuation case depends on comparisons with other teams and Elara’s valuation assumptions.
Television business outlook
Bullish valuation case
Elara says the core media business remains valuable because it has margins above 60% and converts over 75% of EBITDA into operating cash.
Core-business constraints
Advertising and subscription revenue were broadly flat over FY23-FY26, advertising revenue declined around 6–7% annually, and Elara does not expect a near-term advertising recovery.
Key facts
- Elara rating
- Buy, retained
- New target price
- ₹925 per share, up from ₹780
- Implied upside
- 45%
- Sports share of valuation
- Around 45% of Elara’s sum-of-the-parts equity valuation
- Rajasthan Royals transaction valuation
- Around $1.6 billion
- Royal Challengers Bengaluru transaction valuation
- Approximately $1.8 billion
- Core media free cash flow
- ₹98 billion between FY18 and FY26, as estimated by Elara
- Share price cited
- ₹637, up 3.65% on Friday, October 9
Sources
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