ICICI Direct has given Hold recommendation for Zee Entertainment with a target price of Rs. 330 in its research report issued on Sep 23, 2021

ICICI Direct’s research report on Zee Entertainment

Zee Entertainment (Zee) is one of the largest listed media companies in India, which owns and operates a bouquet of 49 TV channels across 11 languages and also an OTT app Zee5. The company’s TV network share dropped to 17% in Q1FY22 vs. 18.9% in Q4FY21 due to lockdown disruption and weak performance in categories such as Hindi GEC, Tamil and Marathi.

Outlook

We, however raise our target multiple to 20x vs. 12x earlier, to account for this new development. We value Zee at Rs 330/share.

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