Sun TV Network shares have climbed 40% over the last three weeks, with Elara Capital setting a target price of ₹925 per share. The brokerage identifies the company’s sports portfolio as a significant contributor to its valuation. However, investors should note that the company officially denied rumors of a potential sports division demerger on September 30, 2026, which had previously fueled market speculation.
Sun TV Network has seen a sharp increase in its share price over the past three weeks, rallying approximately 40%. This momentum follows a positive assessment from Elara Capital, which maintained a positive rating on the stock and established a target price of ₹925. The brokerage’s outlook is largely tied to how the market is beginning to value the company’s non-media assets alongside its traditional television business.
Valuation and the Sports Portfolio
The driving force behind this optimistic target is a shift in how analysts are calculating the company's worth. Elara Capital suggests that the company’s sports franchises—including SunRisers Hyderabad in the Indian Premier League, SunRisers Eastern Cape in SA20, and SunRisers Leeds in The Hundred—now account for nearly 45% of the firm's equity value. The valuation model relies on recent high-value private market deals in the cricket ecosystem. By benchmarking these teams against other franchise valuations, the brokerage argues that the sports segment holds substantial value that may not have been fully captured in the stock price previously.
Clarifying Market Speculation
While the sports portfolio has gained importance, investors should be cautious regarding market rumors. Earlier in September, speculation circulated regarding a potential demerger of the company's sports division from the core media business. This chatter contributed to increased trading volume and volatility in the stock. However, Sun TV Network officially denied these demerger rumors in an exchange filing on September 30, 2026. Investors should rely on official company communication rather than market speculation regarding any future corporate restructuring.
Core Business and Investor Risks
Beyond the cricket franchises, Sun TV’s core media business continues to function as its primary cash generator. The company remains largely debt-free, which provides a level of financial stability often sought by investors. However, the media industry faces ongoing challenges. Potential deceleration in television advertising revenue, as well as the increasing competition from digital and OTT platforms, remain key pressure points for the business.
Furthermore, the current valuation model is sensitive to the high-valuation environment of private sports deals. If the market for sports franchise valuations were to cool down, it could impact the sum-of-the-parts (SOTP) valuation that analysts are currently projecting. The stock's recent performance has been strong, but its future trajectory will likely depend on the company's ability to maintain its advertising market share and the continued financial success of its global cricket ventures. Investors may want to monitor quarterly results for updates on ad revenue growth and any further developments regarding the sports division's financial performance.