Sharekhan has given Buy recommendation for Zee Entertainment Enterprises with a target price of Rs. 400 in its research report issued on Apr 07, 2022

Sharekhan’s research report on Zee Entertainment Enterprises

Invesco Oppenheimer, the largest shareholder of ZEEL, has offloaded up to 8% of its stake in ZEEL through a block deal. Invesco will continue to own nearly 11% stake in ZEEL. With the reduction of Invesco’s stake in ZEEL, we don’t expect any further legal hurdles or requisition from it for any fresh EGM. Invesco believes that the Zee-Sony merger has great potential to create value for Zee’s shareholders. ZEEL’s overall revenue to grow by 12.2% y-o-y in Q4FY2022 despite softness in ad environment, led by strong collections of ZEE studio’s co-produced movies (‘The Kashmir Files’ and ‘Valimai’).

Outlook

We maintain a Buy on the stock with a PT of Rs. 400 given a healthy traction in ZEE5 and reasonable valuation. The combined entity is likely to emerge as a strong player in both linear TV and OTT business by leveraging their ability to create content across genres and regional markets.

More Info

At 17:30 Zee Entertainment Enterprises was quoting at Rs 286.00, up Rs 1.15, or 0.40 percent.

It has touched an intraday high of Rs 289.80 and an intraday low of Rs 283.00.

It was trading with volumes of 890,523 shares, compared to its thirty day average of 4,294,575 shares, a decrease of -79.26 percent.

In the previous trading session, the share closed down 2.10 percent or Rs 6.10 at Rs 284.85.

The share touched its 52-week high Rs 378.60 and 52-week low Rs 166.80 on 15 December, 2021 and 23 August, 2021, respectively.

Currently, it is trading 24.46 percent below its 52-week high and 71.46 percent above its 52-week low.

Market capitalisation stands at Rs 27,470.75 crore.

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