1. Group -8 1
SUN TV Analysis
Ankit Dave
Prashant Gosh
Sunny Goyal
Komal Kasania

2. Group -8 2
Industry Analysis
Sun TV was incorporated in December 1985 and listed in July 2006. Headquartered in Chennai
Sun Network Limited is one of the largest television and radio entertainment companies in
India having presence across TV Broadcasting, distribution and distribution, Radio, Print and
DTH. It has a portfolio of about of 20 channels spread across four languages and in six genres
of GEC, movies, music, news, kids and comedy and with this it continues to maintain its
dominant position in the Southern markets of India. Sun Network also has a large pan India
network in the FM Radio broadcasting segment with 44 FM licenses along with its subsidiaries.
Sun Network continues to capitalize on its leadership position, built over the years, by fortifying
its hold over key aspects of pricing and access to quality content. Sun Network has a distinct
advantage in the Southern regional markets because of its strong understanding of the flavor of
the market and with key competitive strengths including that of a large movie library of regional
languages. Sun Network is the preferred choice for content providers as it is the leader with
the maximum reach in the areas it operates in.
Business Activities
TV channels- It has 20 channels in four languages Tamil, Telugu, Malayalam and Kannada.
namely Sun TV, KTV, Sun Music, Sun News, Chutti TV, Surya TV, Kiran TV, Gemini TV, Teja
TV, AdithyaTV, Teja News, Gemini News, Gemini Music, Gemini Cable Vision, Udaya TV, she
TV, Udaya2, Udaya Movies, Udaya Varthegalu & Udaya News.
FM Radio - It has also forayed into the radio broadcasting segment and has 43 FM radio
channels. Sun TV Network became first to open Tamil’s first private FM station -- Suryan FM
Print Media - It has six publications under this segment namely Dinakaran, Tamizh Murasu,
Kungumum, Mutharam, Vannathirai and Kumguma Chimizh.

3. Group -8 3
Awards/ Achievements:
 CNBC 'Business Excellence Award' in 2005 - Kalanithi Maran, CMD, SunTV Network
 Outstanding Businessman Award in the Entertainment and Information Sector in 2004 -
Kalanithi Maran, CMD, SunTV Network
 World's Young Achiever For Creativity in 1999 - Kalanithi Maran, CMD, SunTV
Network
 India’s Best Entrepreneur Award In 1999 – Kalanithi Maran, CMD, SunTV Network
 Indian Television Academy award for the best Tamil TV Channel for the year 2001- Sun
TV
 Indian Television Academy award for the best Malayalam TV Channel for the year 2001-
Surya TV
 Indian Television Academy award for the best Kannada TV Channel for the year 2001-
Udaya TV
 Indian Television Academy award for the best Telugu TV Channel for the year 2001-
Gemini TV
Recent Developments:
Sun TV Network Ltd. has snapped the five-year telecast rights for the Karnataka Premier
League (KPL). It will be broadcasting the event on its Kannada news channel Udaya Verthegalu.
Future Prospectus
The Indian media and entertainment industry is one of the largest markets in the world having
potential of becoming $200 billion industry by 2015. In this, television has the biggest share of
all, is estimated to generate revenue $13.11 billion by 2011. Media companies like Sun TV Network
have huge potential to expand itself

4. Group -8 4
Challenges
Challenges ahead: -
Cutting rating to neutral, Slower Earning CAGR, Cut Rating & PO.
While the stock has underperformed the markets by 30%, we see limited upside to the share
price and cut our rating to Neutral to factor in 1) likely slower earnings CAGR of 13% (FY11-
14E) led by a cut in ad revenue growth assumptions, and 2) potential impact to cable and ad
revenues from the State government’s plan to run cable TV operations in Tamil Nadu. Our PO
of Rs345 is at 14x FY13E, in line with the historical PEG of 1 and fair, given its strong
margin profile and return ratios. We prefer ZEE in the broadcasting space given its strong 18%
EPS CAGR (FY11- 14E) led by ad growth and lower sports losses. Cut ad revenue growth
assumption for FY12E We cut our ad revenue growth assumption for FY12E to 12% yoy vs.
17% earlier to factor in the 1Q miss and headwinds from weak macro. The 12-13% cut in
earnings estimates is much sharper and factors in the impact from higher content cost of movie
satellite rights. We are 1-3% below consensus on earnings. Uncertainty from recent changes in
cable distribution .A key driver for SNL’s revenue growth has been its strong content and an
efficient cable distribution network in Tamil Nadu run through its group company Sumangali
Cable. We believe the State government’s plan to offer and control cable distribution could
cause short-term disruption impacting subscription revenues and even viewership, leading to a
loss in ad revenues. Why not sell? Post the recent correction, SNL is trading at 14x FY12E/12x
FY13E, at the lower end of the historical band of 11-25x. We believe valuations are fair given its
strong market positioning in the southern states, strong margin profile and return ratios.
FINANCE AND HUMAN RESOURCE
Finance:-
The total Income for the year ended 31st March 2010 amounted to Rs. 14,375.2 millions as
against Rs.10, 915.2 millions during the previous year ended 31st March 2009. The Profit after
tax was at Rs.5, 673.8 millions for the year ended 31st March 2010 as againstRs.4, 371.1 millions
in the previous year. The Board of Directors has recommended a Final Dividend of 120%., i.e.,

5. Group -8 5
Rs.6.00 per equity share of face value of Rs.5.00 each. This Final Dividend together with the
Interim Dividend of 30%., i.e., Rs.1.50 per equity share of face value of Rs.5.00 each declared on
20th January 2010 would result in a total dividend of 150%., i.e., Rs.7.50 per equity share of face
value of Rs.5.00 each for the financial year ended 31st March 2010. (Prev. Year of 50%,
i.e., Rs. 2.50 per equity shares of face value of Rs.5.00 each.). The Reserves and Surplus of the
Company as on 31stMarch 2010 stood at Rs. 18,179.7 millions as against Rs. 15,954.7 millions
as on 31st March2009.
Human Resources:
At Sun Network, with 1987 employees, human resources are the key asset capital and an
important business driver for the Company's sustained growth and profitability. Hence, what
Sun Network believe that training, like all organizational development processes cannot be a
function of time, but rather an ongoing process with the developmental needs and business
planning processes being formalized constantly. A continuous review of the monitoring process
is under way and procedures and systems are being institutionalized across the organization.
FINANCIAL REVIEW & RISK MANAGEMENT
(INCLUDING INTERNAL CONTROL)
FINANCIAL REVIEW 2009-10
(Pursuant to clause 49(11)(E)(1) of the Listing Agreement)
The Financial highlights during the year under review comprised: (All amounts are in millions
unless otherwise stated)
- A 31.70 percent growth in Total Income - Increase in Profit before taxes by 30.07 percent -
Increase in Profit after taxes by 29.80 per cent.

6. Group -8 6
EARNINGS
Total Income
Total Income grew from Rs. 10,915.2 million to Rs. 14,375.2 million, a 31.70 percent increase,
the sustained growth and consistent higher margins are reflective of the Company's continued
dominance in broadcasting business in the Southern states.
Profit before tax (PBT) and Profit after tax (PAT)
PBT increased from Rs. 6,661 million to Rs. 8,664.2 million, with a 30.07 per cent increase and
PAT increased from Rs. 4,371.1 million to Rs. 5,673.8 million, a 29.80 per cent increase, despite
the difficult economic scenario.
Dividend
The outgo on account of interim and final dividend including dividend tax is Rs. 3,448.8 million
(previous year Rs. 1,152.7 million).
FINANCIAL POSITION
Shareholder's Funds
Shareholders' Fund as on 31st March 2010 was Rs. 20,150.1 million. (previous year Rs. 17,925.1
million).
Loan funds
The Company is debt free and had no loan funds-secured or unsecured, as on 31st March2010
(previous year Rs. Nil)
Assets
Net block of fixed assets were at Rs. 5,072.4 million. The net addition to fixed assets for the
year was Rs. 1,408.8 million. The capital expenditure was funded through internal accruals and
deployment of IPO proceeds. Net block of intangible assets and capital working progress
(including capital advances and intangible assets under development) as on31st March, 2010
were at Rs. 1,477.4 and 3,113.9 million respectively.

7. Group -8 7
RATIOS
Earnings per share;
The Earnings per share of face value of Rs. 5.00 for the year ended 31st March 2010 isRs.14.40
(previous year Rs. 11.09).
RISK ANALYSIS AND MANAGEMENT
Risk is an inherent feature of any business activity, more so when the dependence is on the
consistency on the deliverables of the Company and linked to the sustained support from the
viewers and advertisers community at large. Like every organization, Sun TV Network Ltd's
(Sun Network) business is also impacted by a number of factors. Given below is an overview of
some of the major risks affecting any business and Sun's position vis-A-vis these risks.
Competitors
Name Last Market Sales Net Profit Total
Price Cap. Turnover Assets
(Rs. cr.)
Zee Entertain 125.40 12,116.04 2,172.82 579.28 2,904.70
Sun TV Network 288.55 11,371.31 1,923.71 772.22 2,385.71
Dish TV India 76.00 8,089.41 1,436.55 -189.70 1,139.01
DB Corp 220.95 4,050.11 1,261.64 267.32 1,063.49
UTV Software 950.00 3,872.89 545.68 133.89 1,757.11
JagranPrakashan 108.45 3,429.92 1,115.32 205.83 880.30
HT Media 139.60 3,280.89 1,231.78 177.59 1,448.85
Eros Intern 257.65 2,355.10 477.66 69.56 728.04
Hathway Cable 121.05 1,729.29 473.22 -39.84 1,121.71
TV18 Broadcast 43.95 1,591.24 244.41 -49.25 982.25
Ent Network Ind 250.90 1,196.05 279.96 52.21 383.70
TV 18 62.05 1,127.87 307.63 45.24 1,805.42
DeccanChronicle 50.75 1,060.53 976.20 162.45 1,593.26
Hindustan Media 136.05 998.52 520.35 53.60 399.47

8. Group -8 8
Den Networks 76.10 993.03 338.38 6.52 889.29
Prime Focus 61.20 849.87 135.51 19.75 652.27
Ashtavinayak 6.85 564.91 82.06 -8.71 804.16
Reliance Broadc 65.00 516.43 137.36 -11.50 354.24
SRS 33.00 459.66 - - 588.10
Reliance Media 93.70 432.20 524.90 -256.21 2,083.14
PVR 155.00 401.39 351.99 16.34 449.38
Wire & Wireless 8.20 371.82 217.76 -56.71 352.81
TV 59.55 354.06 293.25 12.42 330.28
TodayNetwork
INOX Leisure 52.65 325.88 337.32 6.96 531.98
NDTV 47.25 304.63 355.29 -98.63 620.59
Zee News 12.15 291.31 243.10 9.78 224.88
DQ Entertain 32.20 255.29 161.70 14.05 409.14
Balaji Telefilm 31.30 204.11 153.02 -3.40 396.86
Sri Adhikari 80.95 199.65 32.44 0.55 196.03
Fame India 50.75 177.54 160.25 1.99 183.62
Crest Animation 36.45 161.15 36.43 -1.01 178.85
Saregama India 68.25 118.78 135.23 6.35 212.59
Cinemax India 35.45 99.26 153.83 -1.54 262.33
BAG Films 5.60 92.52 33.83 0.02 328.49
Raj Television 70.75 91.82 45.02 -9.56 95.22
Mukta Arts 36.15 81.63 192.33 -6.16 159.14
K Sera Sera 3.60 74.86 23.58 -0.99 353.08
Tips Industries 33.90 54.10 66.59 2.98 133.30
Next 5.30 28.00 -- -16.45 159.12
Mediaworks
Pritish Nandy 14.25 20.62 11.68 -1.18 95.16
Cinevistaas 3.40 19.53 34.94 -3.00 182.23
Broadcast 7.30 18.48 9.61 -52.17 95.40
Cyber Media 14.45 15.17 48.09 0.37 59.04
Jain Studios 8.20 11.80 11.08 0.51 42.67
Radaan Media 2.10 11.37 32.41 -7.35 17.75
Creative Eye 5.30 10.63 31.37 -3.50 37.62
ATN Int 0.90 3.55 0.50 -0.74 21.65

9. Group -8 9
Company Analysis
Superlative performance
Sun TV’s standalone numbers for Q4FY11 were in line with our estimates on the top
line and EBITDA front. The company reported net revenues of 460.5 C ro r e (up
17.5% YoY) against our expectation of 455.1 Crore on the back of 16.2% ad
revenue growth YoY to 258.0 Crore. The EBITDA margin stood at 79.0%,
contracting 541 bps YoY due to lower employee cost (lower remuneration to
company directors) in Q4FY10 while the EBITDA was 363.9 crore against our
expectation of 360.7 crore. However, the company reported lower than
e x p e c t e d depreciation and amortization resulting in PAT of 208.3 crore for the
quarter higher than our expectation of 178.0 crore.
Highlights for the quarter
Sun TV’s standalone revenue grew 17.5% YoY on the back of 16.2% YoY ad
r e v e n u e growth to 258 crore and 3 0 . 2 % YoY growth in revenue from DTH
subscription. Overall subscription revenue stood at | 138.0 crore (cable: 56 crore,
DTH: 82 crore).
Handsome growth in pay channel revenues but outlook cautious…
Pay channel revenues grew 26.7% YoY to 138.0 crore in Q4FY11 from 109.0 crore
in Q4FY10. DTH revenues grew much faster at 30.2% YoY to 82.0 crore while
a n a l o g u e subscription revenues grew 21.7% to 56 crore. The DTH subscriber
base increased to 6.95 million in Q4FY11, up from 6.72 million in Q3FY11.
However, the future outlook on analogue subscription revenues is slightly
bleak as the AIADMK government in Tamil Nadu has proposed free
cable for all households and cable distribution to be owned by government.
Sun TV derived about 80 c r o r e of i t s subscription revenue of 214 crore in
FY11 from Tamil Nadu.
Consolidated performance
Sun TV’s consolidated performance was robust with 38.6% growth in top line
and 4 8 . 1 % growth in PAT. Kal Radio t u r n e d PAT positive in this fiscal with
EBITDA of 25.4 crore and PAT of 8.9 crore.
The company has declared final dividend of 3.8 per share in addition to interim
dividend of 5 per share declared earlier.
Valuation

10. Group -8 10
The company reported better than e x p e c t e d results for Q4FY11 led by strong
ad revenue growth and lower amortization. Analogue subscription revenues may
be under pressure as the new government has promised free cable and
government owned cable distribution in its election manifesto in Tamil Nadu.
Nonetheless, pay channel revenues from DTH subscription are expected to
remain strong, going forward.
The stock is trading at 18.3x FY12E consolidated EPS of 20.8 and 15.4x FY13E
consolidated EPS of 24.7 against last one year average of 22.5x one year
forward EPS. The stock has taken a beating (down 12.5%) since the
beginning of this fiscal partly due to concerns arising from a new
government coming to power in Tamil Nadu. We b e l i e v e this provides
a good opportunity to enter the s t o c k a t this l evel .

11. Group -8 11
Stock Price
Analysis
Sun TV network’s IPO came in 3rd April 2006. Stock prices have gone down drastically since
2010 December mainly due to macro-economic factors like its associations with politics, 2-g
scams and the name of its CEO and his siblings being associated with the scam.
Mar 07 Mar 08 Mar 09 Mar 10 Mar 11
ROA 22.05 24.95 24.38 28.15 32.36
ROE - 19.28 22.49 29.76 35.04

12. Group -8 12
On the basis of the growth of ROA and ROE ratios it can be observed that the company has
been growing very sharply over the years.
Equity
dividend 344.82 295.506 98.52 98.52 60.08
(Overall)
There was a corporate action on 23 July 2007. There was a split in share value where face value
of share was changed from Rs. 10 to Rs. 5 per share and hence the slump during the year 2008-
09 has been due to the global economic meltdown.
March 07 March 08 March 09 June 10 March 11
Net Profit 118.86 91.45 114.02 170.95 208.34
EPS 17.25 2.32 2.89 4.34 5.29
Volatility of Stock (Jan 2007-oct2011)
When the stock market goes up one day, and then goes down for the next five, then up
again, and then down again, that’s what you call stock market volatility. Volatility as
described here refers to the actual current volatility of a financial instrument for a
specified period (for example 30 days or 90 days). It is the volatility of a financial
instrument based on historical prices over the specified period with the last observation
the most recent price. This phrase is used particularly when it is wished to distinguish
between the actual current volatility of an instrument and

13. Group -8 13
Table
YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2007 1.93 2.87 2.57 1.98 2.54 2.93 29.2 3.7 1.73 3.5 2.84 2.74
2008 6.72 2.38 2.92 1.07 3.91 4.54 5.2 1.38 2.45 5.89 4.25 5.48
2009 3.98 1.96 4.23 3.64 5.23 3.46 2.39 1.81 2.6 3.07 1.84 1.3
2010 2.96 2.73 2.33 0.79 1.56 1.76 1.45 1.85 1.44 1.2 1.56 1.27
2011 1.82 3.78 1.25 1.32 1.67 7.76 3.17 1.39 2.65 4.21
Chart
Average Return Of stock (Jan 2007- Oct 2011)
The simple mathematical average of a series of returns generated over a period of time. An
average return is calculated the same way a simple average is calculated for any set of numbers;
the numbers are added together into a single sum, and then the sum is divided by the count of
the numbers in the set.

14. Group -8 14
Table
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007 0.821 -0.606 0.025 0.299 -0.711 0.67 -5.99 -1.1 0.055 -0.16 0.69 0.345
-
2008 -0.564 -0.579 -0.236 0.274 0.615 -1.14 0.812 0.055 -0.83 -1.46 -0.88 1.671
2009 -0.468 -0.09 0.178 0.576 1.56 -0.33 0.6 0.051 0.936 -0.2 0.279 0.155
2010 0.616 -0.228 0.703 -0.072 -0.187 0.338 0.178 0.226 0.394 -0.18 0.053 0.185
-
2011 -0.371 -0.924 0.462 -0.287 -0.407 -0.53 0.361 -0.31 -1.24 0.599
Chart

15. Group -8 15
Monthly Return

16. Group -8 16
CO- Relation with Godrej
The world of finance, A statistical measure of how two securities move in relation to each
other. Correlations are used in advanced portfolio management.
The formula for the beta of an asset within a portfolio is
Where ra measures the rate of return of the asset, rp measures the rate of return of the
portfolio, and cov (ra,rp) is the covariance between the rates of return. The portfolio of interest
in the CAPM formulation is the market portfolio that contains all risky assets, and so
the rp terms in the formula are replaced by rm, the rate of return of the market.
Beta is also referred to as financial elasticity or correlated relative volatility, and can be referred
to as a measure of the sensitivity of the asset's returns to market returns, its non-
diversifiable risk, its systematic risk, or market risk. On an individual asset level, measuring beta

17. Group -8 17
can give clues to volatility and liquidity in the marketplace. In fund management, measuring beta
is thought to separate a manager's skill from his or her willingness to take risk.
Table
YEAR 2011 2010 2009 2008 2007
EXPECTED RETURN
OF Sun TV, E(A) -0.34168 0.168671 0.26527 -0.32943 -0.63933
EXPECTED RETURN
OF Godrej, E(B) 0.022783 0.14515 0.322825 -0.00802 -0.07327
S.D OF Sun TV( σA ) 3.553022 1.860486 3.209407 4.374627 9.675878
S.D. OF Godrej( σB ) 1.69841 2.544869 2.62932 2.61893 2.176934
Correlation, Cor(A,B) -0.0099 -0.03145 -0.04985 0.034443 -0.10086
Chart

18. Group -8 18

19. Group -8 19
Beta Value

20. Group -8 20

21. Group -8 21
Stock Analysis of Financial Year
Financial Year 2007-08
The market for the 1st quarter of FY 2007 opened on 2nd April. Tsunami hit South-East Asian
countries on this day. So stock markets all over the world performed very badly that day and
during the upcoming weeks of the month as well. The market return on 2nd April was -4.72
while that of Sun TV was – 3.98. Again on 11th April 2007 there was Algiers bombing due to
which the stock market had negative return rate (-.04) but the company performed well on
that day having return rate of 3.63. On 18th April, the company announced its entry into
aviation sector, but it led to negative reaction with respect to the investors. There was a lot of
fluctuation in the stock price and returns rate was negative for the day. With Baghdad bombings
happening during this period, all markets around the world had become volatile and so was the
stock of Sun TV. On 27th April both the market and the stock tumbled because Repo rate of
RBI was announced to be increased by 25 basis points.
During May 4-6 there was Tornado striking in central USA, which affected the stock market
and subsequently the share as well. During 14th May 2007 market return rate was 1.23 while
that of Sun TV was – 4.65. The reason was the family feud and political problems in the state of
Tamil Nadu and the possibilities of resignation of IT minister Dayanidhi Maran sending negative
signs to the investors. This led to constant negative returns of the stock throughout the week.
On 21st May Kalaingar TV was launched to compete with Sun TV by DMK leaders. This showed
the deterioration of relations between the two families and hence the stock price went further
down. Hence the return of the stock was -3.71 in 21st may and -8.35 on 22nd May.
On 6th June 2007 cyclone Gonu hit oil rich countries Oman, Iran and UAE. Hence market was
hit, and the return was -1.92 while that of the stock was -3.3. 1st quarter results were
announced where profits were lesser than the previous quarter. EPS had reduced from 17.52 to
4.72. Hence stock prices have dropped sharply and volatility increased during the period. With
respect to the rate of return of the market, the rate of return of the stock was much lesser.

22. Group -8 22
On 19th July 2007, Dow Jones index hit 14000 points for the first time in history. Also Pratibha
Patil was chosen the President of India on this day. Hence there was a positive attitude of the
investors in the market and hence both the market and share returns were high on this period.
On 23rd April, there was a corporate action taken by the company, where face value of a share
was reduced to 5 from 10. Hence the price of the stock came to 436.6 from 1758.75.
On 1st August, following global cues and heavy selling in international markets the BSE fell by
615. Hence market returns rate was -3.91 while that of the stock was -6.05. On 9th September
the 1st signs of financial crisis due to subprime mortgages came up with global BNP Paribas CA
suspending financial operations based on subprime mortgages. Hence there was negative
sentiment over the markets and volatility increased and market and share returns were
negative for the day. It was during this time only that solvency of USA banks and lending
agencies was being questioned. This period marked the start of the global economic recession
originating from USA. Hence on 16th August, both the market returns rate and that of Sun TV’s
was around -4.2. Fears of recession hit global markets. Market returns rate was -3.03 while that
of Sun TV was -12. 23. Hence there was a very high volatility associated with the stock.
2nd quarter financial report was published in September. Profits had decreased as compared to
previous quarter. Also, EPS had reduced to 2.03 from 4.72. Hence share prices were affected
by the financial results of the company. During October subprime mortgage crisis increases
more tension in world markets with high fluctuations in adjustable rate mortgage. Hence on
8th October, market return rate is -1, 4 while that of the stock is -6.3.
The 3rd quarter financial results were declared in December. Profits had improved since the last
quarter. EPS also had improved as compared to previous quarter. Hence on 1st January where
market returns rate was .08 the return rate of the company was 0.88. For January standard
deviation is quite high (6.72). So there is a high increase in price of the stock.
During the fourth quarter period, very heavy fluctuations in the overall returns of the market
and that of the stock can be seen. The daily returns have shown very high volatility. This can be
attributed to the subprime mortgage crisis in the US, which had started showing its effect on

23. Group -8 23
the US and world economy .The takeover of Bear Stearns at $2 per share shows the starting of
the financial problems in the USA.
The financial analysis for the year was published in March. Net profit of 268 crores was
obtained by the company. EPS was 39.02.
Financial Year 2008-09
During the 1st quarter the average return of the stock has been 0.274, 0.615 and -1.14 for April,
May and June respectively. From the table it can be seen that during the month of April the
volatility of the stock has become lesser with respect to the market return rate. During May,
the effect of recession started to show in Spain which was hard hit with inflation,
unemployment and recession. Global markets were hit during May.
Financial result of the first quarter showed improvement than the previous quarter. Net profits
and EPS improved for the quarter whose effect can be seen at the opening stock price on 2nd
June.
But during the period of June 2008 negative returns for the whole month can be observed both
for the company and the market, which was due to the financial crisis in the USA which had
started to build up. But despite of the negativity of the market, the company had performed
financially well. In the 1st quarter result, the company still made net profits of 102.54 crores and
an EPS of 2.75 which was better than the previous quarter.
For the 1st quarter, the average return of the stock was 13.1, -21.2 and -17.1 for May, June and
July respectively. The volatility of the stock had also increased with time during the passage of
the quarter.
Second financial quarter was quite an eventful period with respect to global markets. During
September major American banking companies like Lehmann Brothers, Merrill Lynch and AIG

24. Group -8 24
had filed for bankruptcy which led to plunging of stock markets all around the world. The
average returns for Sun TV during this period was -1.104, 0.055 and -.155 for August,
September and October respectively. Volatility of the stock has decreased through the course
of the period showing that trading of the stock has been less.
For the third financial quarter average return for the month were -1.46, -.88 and 1.67 for
October, November and December respectively. Standard deviation remained almost the same
for the whole period. Also share price can be seen to be going down with the passage of the
quarter. The confidence of the investors on the market was not there .So stock prices and
hence the market valuation of the company has declined for the quarter. Financial results
showed outcome of the quarter almost similar to that of the previous quarter. This showed
that instead of the market going for a downfall, the company was still managing to earn profits.
For the final quarter of financial year 2008-09, average return for the month was -0.47,-.098,
and 0.171 for January, February and March respectively. Volatility was 3.98, 1.96 and 4.32
respectively. This shows that there was a decrease in sales/purchase of the stocks during
February. Financial result of this quarter shows and improvement in net profits as compared to
the previous quarter
By the annual results we find that net profit of the company has increased as compared to the
previous year. Earnings per share have reduced drastically in one year from 39.02 to 9.31.

25. Group -8 25