Relationship of Sun TV Network with Nifty

Relationship of Sun TV Network with Nifty

Author: Suraj Amrutkar

Introduction:

Sun TV Network is a leading Indian media conglomerate, renowned for its diverse portfolio of television channels and entertainment offerings. Established in 1993, it has grown to become one of the country’s largest media companies, with a strong presence in South India. The company operates a wide range of channels spanning various languages, including Tamil, Telugu, Kannada, and Malayalam, catering to a vast and diverse audience. With a commitment to delivering quality content and a reputation for innovation in the broadcasting industry, Sun TV Network Ltd. continues to be a prominent player in India’s vibrant media landscape.

 

Objective:

To calculate beta of Sun TV Network and find out its significance.

 

Views and reviews:
R. Mahesh Kumar Managing Director

1. Your Company, one of the largest Television Broadcasters in India operating Satellite Television Channels across six languages of Tamil, Telugu, Kannada, Malayalam, Marathi and Bangla and presently airing FM radio stations across India continues to have sustained and increased viewership of its channels with Sun TV being the most watched channel in India. The Company produces its own content / acquires the related rights. The Company has the license to operate an Indian Premier League (‘IPL’) franchise “SunRisers Hyderabad”. The Company also operates an OTT platform “SUNNXT “. There is no change in the nature of business of the Company.

 

2. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor’s Responsibility for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements

Data collection:

Data for This Period (1/7/2022 to 30/6/2023) has been downloaded from NSE India Site and Weekly Closing Prices Where Found out Then Weekly Returns of Nifty a Weekly Return of Sun TV Network were Calculated (Nifty Returns Taken as X and Equity Return Taken As Y) Y Was Regress On X.

Data analysis:

Equation y=0.27 – 0.45 x + e (Sun TV Network Ltd = 0.27 – 0.45 Nifty 50 + e)

T stat for b = -1.59

R² =0.0500

F= 2.53

The above equation do not show any relationship between nifty 50 (X) and sun tv(Y). sun tv runs on own fundamentals the t stat for b is -1.59not statistically significant at    5 % level, R²is 0.0500 which means 5% Y is explained by X. 95% is the error in model 2.53Which is less than the table value which means overall the model is not statistically significant at 5% level.  

Conclusion:

Because the Beta Of Sun TV Is < 1 So The Company Is Good For Long Term Investment.