Shares of Sun TV Network Ltd jumped 5% on Monday, a day when the broader markets declined.

That’s because Star India won the media rights for the Indian Premiere League (IPL) for over Rs16,000 crore (for five years), far exceeding expectations.

Sun TV gains from this development as the company’s IPL franchise SunRisers Hyderabad will earn more revenue. The stock gained a further 2.35%, or Rs18.85, on Tuesday to close at Rs825.80.

Ankit Kedia, research analyst at Centrum Broking Pvt. Ltd, says revenue at Sun TV’s IPL franchise is likely to hit Rs250 crore for fiscal year 2019 (FY19).

“After accounting for costs, the IPL franchise should report a profit after tax of about Rs100 crore next year against a loss of Rs24 crore in financial year 2017," he added. For the June quarter, Sun TV’s IPL franchise reported a loss of Rs22.4 crore.

For perspective, the company’s consolidated profit after tax for FY17 stood at Rs1,030.66 crore. No wonder investors were thrilled.

Kedia included Vivo’s title sponsorship deal as well in his calculations along with the fact that Sun TV will not have to pay Rs85 crore in franchisee fee next year to the Board of Control for Cricket in India—only 20% of the franchisee income received will have to be paid to it.

The eight IPL franchises share the revenue from the media rights of up to 50%, comprising 45% of the media rights plus 5% depending on the final league standing.

Tuesday’s 2% rise and Monday’s 5% increase in the Sun TV share price comes even after its shares appreciated 10% on Friday. On Thursday, the stock had closed at Rs697.20. Friday’s acceleration was owing to the digitization thrust happening in Tamil Nadu.

Analysts say that this will lead to an increase in average revenue per user from subscribers in the state, provided it is implemented properly. This is a positive for Sun TV, as it has a big presence in the southern states.

While these developments augur well, note that despite the recent increase in the share price, the Sun TV stock is about 14% lower from its closing high on 21 April on BSE.

Intense competition, lacklustre advertising revenues and limited market share gains weighed on sentiment for the stock, say analysts.

As on Monday, one Sun TV share traded at about 28 times estimated earnings for FY18.