The period given by the analyst is one year when the price of Zee Entertainment Enterprises Ltd. can achieve the defined goal.
Zee Entertainment Enterprises Ltd., incorporated in 1982, is a large cap company (with a market capitalization of Rs 33,680.48 Crore) operating in the media and entertainment industry.
The main product / revenue segments of Zee Entertainment Enterprises Ltd. include advertising revenue, subscription revenue, television content, transmission revenue, other operating revenue and commissions for the year ending March 31, 2021.
For the quarter ended 30-09-2021, the company reported consolidated total income of Rs 2010.47 Crore, up 11.16% from last quarter total income of Rs 1808.56 Crore and up 14 , 19% compared to the total income for the same quarter of last year of Rs 1760.61 Crore. The company reported after-tax net profit of Rs 266.04 crore in the last quarter.
Justification of the investment
The brokerage has adjusted the pro forma estimates assuming the merger benefits will begin to be reflected from FY24 over FY 23 earlier. He maintains Buy with a revised Mar’23E TP of Rs430 (11x Mar’24E broadcast pro-forma EBITDA).
Promoter / FII Holdings
The promoters held 3.99% of the company’s capital as of September 30, 2021, while the FIIs held 57.18% and the DII 15.98%.
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