Sharekhan is bullish on Zee Entertainment Enterprises has beneficial purchase score on the inventory with a goal worth of Rs 210 in its analysis report dated May 25, 2023.

Sharekhan’s analysis report on Zee Entertainment Enterprises

ZEEL reported income at Rs 2,112.1 crore, flat q-o-q / down 9.1% y-o-y which beat our estimates of Rs 2,017 crore owing to a 5.5% y-o-y decline in commercial income and a 25.6% y-o-y decline in Other Sales and companies. EBITDA margins declined by 1377 bps y-o-y to 7.2%, beneath our expectation of 9.8%, owing to increased programming and working prices. EBITDA margin was impacted by a rise in prices throughout Zee5, Movies and Sports. Zee5 continued to achieve floor with income at Rs 220 crore, up 36% y-o-y. The administration expressed expectations of a gradual restoration in advert spends and indicated cautious optimism relating to inflationary headwinds and the advantages of NTO 3.0.

Outlook

We keep a Buy on ZEEL with revised PT of Rs. 210 given wholesome traction in ZEE5, advantages of NTO 3.0 on subscription revenues and cheap valuation. However, we have now lowered the goal worth to issue the weak and unstable margin profile on account of continued funding in content material. At CMP, the inventory trades at 18.1x /14.6x its FY24E/FY25E EPS.

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Zee Entertainment Enterprises – 26 -05 – 2023 – khan