Fundamentally, it looks attractive; there is no getting away from that. It is trading at 12 PE, I don’t remember Sun TV trading at these kind of multiples. Having said that, you can get a bump up in the stock because it has fallen quite a bit, 35% or so in the last few days, that is a big cut in the largecap name and it is ripe for some technical bounce.
Yesterday’s fall was clearly aggravated by the pledge shares, which are sold by IFCI. And that might have added to the delivery based pressure on the counter. These regulatory hangovers or scam hangovers can affect a stock, however good the stock might be. So, it will be a brave call to go out and buy Sun at this point and a lot of institutions may not want to do that.
Also read: Maran is history, will succumb to 2G charge, says N Ram
Yesterday’s fall was clearly aggravated by the pledge shares, which are sold by IFCI. And that might have added to the delivery based pressure on the counter. These regulatory hangovers or scam hangovers can affect a stock, however good the stock might be. So, it will be a brave call to go out and buy Sun at this point and a lot of institutions may not want to do that.
Also read: Maran is history, will succumb to 2G charge, says N Ram
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