Zee Entertainment has been buzzing in trade and has gained 19% in the last week, recovering 76% from its March lows. Volumes in the last week have been more than 3 times the average volumes of the past 10 weeks.  While Q1 earnings were disappointing, analysts believe that the major impact on ad revenue due to COVID-19 felt in Q1 which will now recover. 

The resumption of fresh programming and a strong market share will benefit Zee Ent through the year. Key positives also include Mr. R. Gopalan (Independent Director) becoming the new Board Chairman, three-four new board members joining in FY21, lower working capital, and content investment moderating going ahead. 

Brokerages remain bullish on Zee Ent saying the company made some progress on providing new disclosures and started providing key numbers for Zee5 & quarterly balance sheet. Ad revenue growth is expected to return and Content cost and Capex will lower. 

Zee Entertainment was also in the news as the Singapore government and Monetary Authority of Singapore sold almost 1% of their total holding in the company to 5.93% for an estimated sum of over Rs 186 crore by selling shares in the open market.