Zee Entertainment Enterprises’ share price jumped more than 5% intraday in Wednesday’s session after the company reported numbers for the April-June quarter. Zee Entertainment Enterprises Ltd (ZEEL) on Tuesday announced a 94.5% year-on-year (YoY) drop in its consolidated net profit to Rs 29.3 crore for the first quarter ended June 30, 2020 from Rs 529.8 crore as of corresponding quarter of last year.
Following the earnings update, Zee Entertainment Enterprises share price opened at Rs 630.90 and then climbed 5.2% to reach the intraday high of Rs 183 on BSE against the close previous Rs 173.95. Zee Entertainment Enterprises stock also earlier hit an intraday low of Rs 169.35, down 2.64%.
Zee Entertainment Enterprises’ share price jumped 13% in a week and 16% in a month. ZEEL shares trade over 5, 20, 50 and 100 days, but at moving averages below 200 days. The company’s market capitalization stood at Rs 17,364 crore at today’s meeting.
ZEE Entertainment shares closed Tuesday trade at Rs 173.95, up 2.38% from the previous closing price of Rs 169.90 on BSE, ahead of first quarter results.
Consolidated operating income fell 34.7% to Rs 1,312 crore from Rs 2,008.1 crore in the same quarter last year.
During the April to June quarter, EBITDA (earnings before interest, taxes, depreciation and amortization) decreased 66.7% to Rs 219.9 crore in Q1 FY21 from Rs 659.8 crore in Q1 FY20.
“Despite a sharp increase in viewership across all mediums, monetization was really low in April-May, resulting in a 66% year-on-year decline in domestic advertising revenue,” ZEEL said in a filing on the Stock Exchange of Bombay.
The research and brokerage firm Motilal Oswal Financial Services maintained a neutral rating with a target of Rs 190 per share for ZEEL stock. The brokerage said: “We remain attentive to the evolution of the business situation and governance measures, including the admission of new members of the board of directors in the coming months and the increase in financial information. for investors ”.
CLSA withheld shares of ZEEL to “buy” and raised its target price to Rs 255 per share and added that the company’s first quarter revenue exceeded estimates, while advertising revenue was in line. CLSA added that improved disclosures, the jump in viewers and growth in advice are expected to return in the second half of the year and that Zee Network’s audience has improved significantly to exceed pre-COVID levels.
Morgan Stanley also maintained an equal weight rating and raised the target to Rs 150 and said, “Advertising and subscription revenue was mostly in line with our estimates, while the company’s margin and profit at first trimester were lower. ”
Macquarie in his report said, “The market is undervaluing the steps the company has taken over the past 7 months to improve its credibility. Earnings per share (EPS) for fiscal year 21-23E increased by 3-5%, while it increased earnings per share for fiscal year 22E. multiple target ratio (PER) to 14x from 12x “. The brokerage house maintained an” outperformance “on ZEEL stock with a target of Rs 250 per share.
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