Geojit has given Buy recommendation for Zee Entertainment Enterprises with a target price of Rs. 389 in its research report issued on Nov 17, 2021
Geojit’s research report on Zee Entertainment Enterprises
Zee Entertainment Enterprises Ltd, a subsidiary of Essel Group, is an Indian mass media company with interests in television, print, films, mobile content and internet, and allied businesses. Q2FY22 revenue rose 14.9% YoY to Rs. 1,979cr. Zee Entertainment Enterprises Limited reported 48.6% YoY increase in PAT in Q2FY22 to reach Rs. 284cr. EBITDA margin expanded 150bps YoY to 19.7% on higher margin product mix and lower costs. Zee is expected to fare much better in Q3FY22 on the back of opening of theatres, strong performances of new launches and expected new launches and the proposed merger. We reiterate our rating on the stock as BUY with a revised target price of Rs. 389 based on 24.0x FY23E adj. EPS.
We expect earnings to grow at healthy ~30% CAGR over FY21-23E. Hence we reiterate our rating on the stock as BUY with a revised target price of Rs. 389 based on 24.0x FY23E adj. EPS.