Motilal Oswal has given Neutral recommendation for Zee Entertainment with a target price of Rs. 335 in its research report issued on Nov 11, 2021

Motilal Oswal’s research report on Zee Entertainment

Zee Entertainment (Z)’s EBITDA / adj. PAT jumped 31%/70% YoY (6%/7% miss) on a lower base, as ad revenues were up 21% YoY, (11% below pre-COVID – 2QFY20), given the impact of COVID in the first half of the quarter. We largely maintain our estimates, factoring in FY23E EBITDA/PAT at 10%/17% above FY20 levels, after two consecutive quarters of cuts in estimates and margin guidance. Gradual improvement in network market share and Zee5 KPIs bode well, but clarity on acquisitions and leadership are key to the stock performance. We maintain Neutral.


For now, we value Z at 20x Sept’23 EPS, with Target Price of INR335. Maintain Neutral.

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