Anand Rathi has given a buy rating to Zee Entertainment with a target price of Rs 220. The share price moved down by 3.41 per cent from its previous close of Rs 199.45. The stock’s last traded price is Rs 192.65.

Zee Entertainment Enterprises Ltd., incorporated in the year 1982, is a Large Cap company (having a market cap of Rs 18710.63 Crore) operating in Media & Entertainment sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 1312.03 Crore, down 32.75 % from last quarter Sales of Rs 1951.08 Crore and down 34.66 % from last year same quarter Sales of Rs 2008.12 Crore. The Company reported net profit after tax of Rs 29.24 Crore in latest quarter.

Investment Rationale
The brokerage values Zee at 10x FY22e EV/EBITDA and retains Buy rating, with a TP of Rs 220. Risk: Any slippage in content ratings.


Promoter/FII Holdings
Promoters held 4.8 per cent stake in the company as of June 30, 2020, while FIIs held 67.3 per cent, DIIs 9.1 per cent and public and others 24.1 per cent.