This Company Is The 'Best Proxy To Invest In IPL' — Check Target Price

Shares of Sun TV Network Ltd. were buzzing in trade on Tuesday on the back of Avendus Spark's major upgrade, as the brokerage firm banks on the company to leverage its Indian Premier League (IPL) opportunity.

Sun TV Networks shares reached an intraday high of Rs 581.8, which accounts for a gain of almost 6% compared to Monday's closing price of Rs. 544.85.

Although the stock has shed almost 30% over a 12-month period, Avendus Spark has noted a major upside going forward, particularly on the back of the IPL opportunity.

In its latest note, Avendus Spark has upgraded Sun TV Networks from 'Buy' to 'Sell', hiking the target price from Rs 495 to Rs 680, which implies an upside of almost 20% from the current market price.

Avendus has also issued a three-year price target of Rs. 840, which implies a whopping 48% upside.

This comes on the back of Sun TV's positioning as a 'pure-play' proxy to the massively popular Indian Premier League, one of the biggest sporting events in the world.

Avendus believes the market has already punished all the negatives that are already priced in for Sun TV, and the company can only look forward, especially when it comes to leveraging the IPL opportunity.

Simply put, Sun TV is the top-listed company for investors who want to benefit from the IPL's success, Avendus adds.

This is because of Sun TV's IPL franchise, Sunrisers Hyderabad, which has been one of the league's finest performers over the past 10 years.

While IPL is already popular in India, BCCI has been trying to expand internationally as well, with companies like Netflix looking to sporting events like IPL to expand their subscribers. This could only aid Sun TV.

Avendus also notes that IPL franchises have been expanding globally, with Sun TV itself recently acquiring Northern Superchargers, a London-based franchise that competes in the Hundred.

Sun TV also owns cricketing franchises in South Africa through Sunrisers Eastern Cape.

As per Bloomberg data, a total of 15 analysts cover Sun TV Networks, with seven giving out buy calls on the counter. Five analysts have given hold calls while three have held 'sell' calls.