Investor's Eye: Update - Sun TV Network; MF - Sharekhan's top equity mutual fund picks, Sharekhan's top SIP fund picks

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Summary of Contents     STOCK UPDATE Sun TV Network Recommendation: Buy Price target: Rs515 Current market price: Rs395 Advertisement revenues set to rebound, retain Buy Key points In our recent interaction, Sun TV's management sounded confident of reviving growth in the advertisement revenues due to an increase in its share of advertisement inventory (share of content producers cut from 8 minutes to 6 minutes per hour; post-TRAI cap on total advertisement time per hour for broadcasters) and potential to further increase advertising rates from customers. Thus, it expects 10-12% growth in advertisement revenues in FY2015 (as compared to flattish performance in FY2014). The strong growth seen in the subscription revenues recently is likely to sustain with the management expecting a growth of over 20% in FY2015. The growth could be even higher if the digitisation momentum improves in the Chennai and Coimbatore markets. On the flip side, the shifting of the initial matches of Indian Premier League (IPL; the company owns the IPL team, Sun Risers Hyderabad) season-7 to outside India due to the general elections could increase the losses of the company's IPL franchisee (because of higher costs and a lower share of ticket sales and sponsorship revenues).  Sun TV Network is among the prime beneficiaries of the ongoing digitisation process that will continue for the next two years. Besides, an improvement in the domestic macros will have a positive impact on the company's advertisement revenues. We maintain our Buy rating on the stock with a 12-month price target of Rs515 (a 30% upside from the current levels).        MUTUAL GAINS Sharekhan's top equity mutual fund picks   Large-cap funds Mid-cap funds Multi-cap funds Birla Sun Life Top 100 Fund Mirae Asset Emerging Bluechip Fund Reliance Equity Opportunities Fund ICICI Prudential Focused Bluechip Equity Fund - Ret SBI Magnum Midcap Fund Mirae Asset India Opportunities Fund - Reg Birla Sun Life Frontline Equity Fund - Plan A  HDFC Mid-Cap Opportunities Fund ICICI Prudential Top 100 Fund Reliance Focused Large Cap Fund IDFC Premier Equity Fund - Reg SBI Magnum Multiplier Plus 93 UTI Leadership Equity Fund Principal Emerging Bluechip Fund HSBC India Opportunities Fund Indices Indices Indices BSE Sensex BSE MID CAP BSE 500 Tax-saving funds Thematic funds Balanced funds Axis Long Term Equity Fund ICICI Prudential Exports and Other Services Fund ICICI Prudential Balanced Reliance Tax Saver (ELSS) Fund Birla Sun Life India GenNext Fund HDFC Balanced Fund  ICICI Prudential Taxplan Franklin Build India Fund Reliance RSF - Balanced HDFC Long Term  Advantage Fund Sundaram Rural India Fund - Reg Birla Sun Life 95 Principal Personal Taxsaver Birla Sun Life Infrastructure Fund - Plan A UTI Balanced Fund Indices Indices Indices CNX500 CNX Nifty Crisil Balanced Fund Index Fund focus SBI Magnum Multiplier Plus Fund   Sharekhan's top SIP fund picks   Large-cap funds Multi-cap funds  Birla Sun Life Top 100 Fund Mirae Asset India Opportunities Fund - Reg Birla Sun Life Frontline Equity Fund - Plan A  ICICI Prudential Top 100 Fund  ICICI Prudential Focused Bluechip Equity Fund Reliance Equity Opportunities Fund UTI Leadership Equity Fund HDFC Capital Builder Fund Principal Large Cap Fund  HSBC India Opportunities Fund BSE Sensex BSE 500 Mid-cap funds Tax saving funds  Principal Emerging Bluechip Fund ICICI Prudential Taxplan HDFC Mid-Cap Opportunities Fund HDFC Long Term  Advantage Fund IDFC Premier Equity Fund - Reg SBI Magnum Tax Gain Scheme 93 Kotak Emerging Equity Scheme Reliance Tax Saver (ELSS) Fund  Kotak Midcap Fund Principal Personal Taxsaver BSE Midcap CNX Nifty Fund focus Reliance Equity Opportunity Fund Click here to read report: Investor's Eye   Sharekhan Limited, its analyst or dependant(s) of the analyst might be holding or having a position in the companies mentioned in the article.

Regards,  The Sharekhan Research Team