Analyst view: Sun TV gets ADD rating and higher target price, Jubilant FoodWorks faces sell call

Analysts at IIFL Securities have upgraded their recommendation for Sun TV Network Ltd. to ‘ADD’ from ‘HOLD’ with a new price target of ₹731, a bullish signal for the media conglomerate. The revised target represents an increase from the previous goal, although the firm’s earnings per share (EPS) estimates have been trimmed by up to 3%. The potential for value realization through a demerger or an initial public offering (IPO) of Sun TV’s Indian Premier League (IPL) franchise is cited as a key driver behind the optimistic outlook.

In contrast, CLSA has maintained a ‘SELL’ rating on Jubilant FoodWorks Ltd., which operates Domino’s Pizza (NYSE:) in India, reducing its target price slightly to ₹502. The advisory points to heightened competition in the quick-service restaurant sector and elevated fixed costs amidst a backdrop of waning consumer interest as challenges facing the company.

Meanwhile, Jefferies has expressed confidence in Honasa Consumer Pvt. Ltd., the parent company of personal care brands like Mamaearth, by recommending a ‘BUY’ and raising the target price to ₹530. This endorsement follows robust second-quarter results and the management’s expectations of over 30% sales growth along with improvements in EBITDA margins.

Lastly, Motilal Oswal has taken a neutral stance on real estate giant DLF Ltd., setting a target price of ₹650. The brokerage notes that while the company has seen steady bookings year-on-year for the first half of FY24, DLF’s effective cash flow management strategies have contributed to reduced debt levels, which are important considerations for investors.

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