"Breaking News: Should You Buy, Sell, or Hold ZEE Entertainment Shares?"
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"Profit Alert! ZEE Entertainment Shares: Q4 Results Analysis"
Shares of Zee Entertainment rose 5 percent on Saturday on BSE to the day’s high of Rs 141.65 after the company on Friday reported a profit for the March quarter against loss a year ago.
Zee on Friday reported a net profit of Rs 13.35 crore for the quarter ended March 2024, compared with a loss of Rs 196 crore in the same quarter of last year. the total income in the reporting quarter increased 3 percent year-on-year to Rs 2,185 core.
ZEE has said that it will see most of the one-time higher costs towards implementing the interventions in the current quarter, offsetting underlying operating performance improvements and causing softness on margins.
Goldman Sachs
The partial recovery in revenues was appreciable. However, margins remained subdued coupled with a weak EBITDA margin profit at 9.7 percent for the fourth quarter. Goldman has cut its FY25-27 revenue/EBITDA estimate forecasts by 5%-8%/30%-37%.
Nuvama
Zee Entertainment posted Q4FY24 revenue/EBITDA (up 2.7 percent/38.5 percent YoY) beating Nuvama’s estimates. Overall, the brokerages increased FY25E/26E revenue forecast by 1.4 percent / 2.6 percent on the back of improving outlook for FMCG advertisers, but cut EPS by 19 percent/6 percent as ZEE is transitioning towards a more focused structure, entailing high one-time costs in FY25.
Emkay Global
Domestic brokerage firm Emkay Global said it is building in some recovery on the advertising front for ZEE (7 percent growth in FY25E/26E) aided by a lower base and persistent recovery in overall ad spending. Subscription revenues should seen an uptick due to price hikes. Margins should also improve on account of multiple interventions, though Emkay reiterated that a significant re-rating should happen in case of a new buyer/partner. Any unfavorable decision in legal cases the company is involved in could be a key risk.
Emkay has maintained a ‘reduce’ rating on the stock with an unchanged target price of Rs 150.
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