Zee Entertainment Enterprises Ltd

The broker highlighted ZEEL's attractive valuation, with the stock currently trading at a low price-to-earnings (PE) ratio of 8. The broker projects a potential 22-33% Ebitda/PAT CAGR over financial year 2026-2027, even with a conservative 6% year-over-year advertising growth assumption. According to the broker, advertising revenue-led growth will be a key driver for the stock's re-rating. ZEEL, India's second-largest television network, is also actively expanding its over-the-top (OTT) platform, ZEE5. Further, Zee is now debt-free, holding Rs 1,700 crore in cash reserves. Based on these factors, the foreign broker suggests that Zee's stock has the potential to double within the next 12-24 months. ZEEL is a media & entertainment company offering entertainment content to diverse audiences. It is present across broadcasting, movies, music, digital, live entertainment, and theatre businesses, both within India and overseas. The company's consolidated net profit zoomed 180% to Rs 163.60 crore while net sales declined 3.27% to Rs 1978.80 crore in Q3 FY25 over Q3 FY24. Powered by Capital Market - Live

The Board of Zee Entertainment Enterprises at its meeting held on 23 January 2025 has approved the appointment of Divya Karani (DIN 01829747) as an Additional Director in the category of Independent Director of the Company for a period of 3 (three) years with effect from 23 January 2025. Powered by Capital Market - Live

Net profit of Zee Entertainment Enterprises rose 179.66% to Rs 163.60 crore in the quarter ended December 2024 as against Rs 58.50 crore during the previous quarter ended December 2023. Sales declined 3.27% to Rs 1978.80 crore in the quarter ended December 2024 as against Rs 2045.70 crore during the previous quarter ended December 2023. ParticularsQuarter EndedDec. 2024Dec. 2023% Var. Sales1978.802045.70 -3 OPM %16.2110.22 - PBDT344.50218.50 58 PBT278.70142.40 96 NP163.6058.50 180 Powered by Capital Market - Live

However, total income declined 2.89% to Rs 2,013.3 crore in Q3 FY25 as compared with Rs 2,073.4 recorded in Q3 FY24. The company's revenue from advertising was at Rs 940.60 crore (down 8.44% YoY), revenue from subscription stood at Rs 982.50 crore (up 6.52% YoY), and revenue from other sales and services was at Rs 34.50 crore (up 24.54% YoY) during the period under review. Profit before exceptional items and tax jumped 95.71% to Rs 278.70 crore in Q3 FY25 as against Rs 142.40 crore reported in same quarter last year. The company recorded an exceptional loss of Rs 80.90 crore during the quarter. EBITDA stood at Rs 318.40 crore in the December 2024 quarter, registering a growth of 52.34% YoY. EBITDA margin improved to 16.1% in Q3 FY25 from 10.2% reported in the corresponding quarter previous year. Total expenses slipped 10.17% to Rs 1,734.7 crore in Q3 FY25 from Rs 1,931.1 crore posted in Q3 FY24. Advertisement and publicity (A&P) expenses was at Rs 122.60 crore (down 19.18% YoY), and operational cost stood at Rs 996.80 crore (down 16.06% YoY) during the quarter. The company said that the decline in operating cost YoY was driven by lower programming and technology costs, strong cost discipline across every element of the cost structure, and selectively investing for future growth. The firm reported an increase in A&P and other expenses led by an increase in marketing towards new launches. ZEEL is a media & entertainment company offering entertainment content to diverse audiences. It is present across broadcasting, movies, music, digital, live entertainment, and theatre businesses, both within India and overseas. Powered by Capital Market - Live

Zee Entertainment Enterprises will hold a meeting of the Board of Directors of the Company on 23 January 2025.Powered by Capital Market - Live

SEBI, in a three-page order issued on Thursday, dismissed show-cause notices issued against ZEEL, its founder Subhash Chandra, and his son Punit Goenka for alleged violations of SEBI regulations. However, the order directed that the allegations in the show-cause notices be merged with the ongoing investigation. Subhash Chandra is the director and former chairman, while Punit Goenka serves as the executive director, CEO, and MD of the company. The order stated, The allegations in the SCN dated July 06, 2022 issued by AO are to be subsumed with the findings of the further investigation carried out by SEBI in the instant matter. Accordingly, the content of the SCN dated July 06, 2022 issued by the AO including the examination report and all the relied upon documents will be treated as integral part of the further investigation report by SEBI in the matter of ZEEL. This implies that the findings of the ongoing investigation will now encompass the allegations raised in the show-cause notices. ZEEL was facing an adjudication proceeding under Section 23E of the Securities Contracts (Regulation) Act, 1956. The case was initially assigned to Adjudicating Officer Parag Basu on October 28, 2021, and later reassigned to Amit Kapoor on December 27, 2024. In this regard, it has been observed that subsequent to completion of investigation in the instant matter, it has been decided by the Competent Authority to proceed against the Noticees under Section 11B of SEBI Act 1992, the order stated. Zee Entertainment Enterprises stock has been under pressure since the termination of its merger deal with Sony Group. Shares have declined nearly 60% in the past 12 months. Zee Entertainment Enterprises is a leading content company offering entertainment content to diverse audiences. With a presence in over 190 countries and a reach of more than 1.3 billion people around the globe, ZEEL is among the largest global media & entertainment companies across genres, languages, and integrated content platforms. The company's consolidated net profit from continuing operations surged by 61.28% to Rs 209.5 crore in the second quarter of fiscal year 2025, compared to Rs 129.9 crore in the same period last year. However, total income declined by 18.94% to Rs 2,034.4 crore, down from Rs 2,509.6 crore in Q2 FY24. Powered by Capital Market - Live

Zee Entertainment Enterprises Ltd rose for a third straight session today. The stock is quoting at Rs 127.18, up 2.59% on the day as on 12:49 IST on the NSE. The benchmark NIFTY is down around 0.45% on the day, quoting at 24079.19921875. The Sensex is at 79453, down 0.61%. Zee Entertainment Enterprises Ltd has dropped around 9.87% in last one month. Meanwhile, Nifty Media index of which Zee Entertainment Enterprises Ltd is a constituent, has dropped around 10.73% in last one month and is currently quoting at 1830.6, up 1.62% on the day. The volume in the stock stood at 245.75 lakh shares today, compared to the daily average of 93.67 lakh shares in last one month.The PE of the stock is 18.61 based on TTM earnings ending September 24.Powered by Capital Market - Live

Zee Entertainment Enterprises Ltd dropped for a fifth straight session today. The stock is quoting at Rs 132.14, down 1.88% on the day as on 13:19 IST on the NSE. The benchmark NIFTY is up around 0.24% on the day, quoting at 24608.35. The Sensex is at 81455.03, up 0.2%.Zee Entertainment Enterprises Ltd has gained around 14.37% in last one month.Meanwhile, Nifty Media index of which Zee Entertainment Enterprises Ltd is a constituent, has increased around 1.14% in last one month and is currently quoting at 1964.75, down 0.94% on the day. The volume in the stock stood at 59.43 lakh shares today, compared to the daily average of 161.79 lakh shares in last one month.The PE of the stock is 20.2 based on TTM earnings ending September 24.Powered by Capital Market - Live

Zee Entertainment Enterprises Ltd lost 0.54% today to trade at Rs 137.35. The BSE Teck index is down 0.26% to quote at 19732.94. The index is up 6.19 % over last one month. Among the other constituents of the index, Indus Towers Ltd decreased 0.44% and Infosys Ltd lost 0.43% on the day. The BSE Teck index went up 32.45 % over last one year compared to the 16.76% surge in benchmark SENSEX. Zee Entertainment Enterprises Ltd has added 14.08% over last one month compared to 6.19% gain in BSE Teck index and 2.7% rise in the SENSEX. On the BSE, 40431 shares were traded in the counter so far compared with average daily volumes of 8.8 lakh shares in the past one month. The stock hit a record high of Rs 299.5 on 12 Dec 2023. The stock hit a 52-week low of Rs 114.4 on 13 Nov 2024.Powered by Capital Market - Live

Zee Entertainment Enterprises Ltd is up for a fifth straight session today. The stock is quoting at Rs 128.74, up 4.57% on the day as on 12:44 IST on the NSE. The benchmark NIFTY is up around 0.8% on the day, quoting at 24106.1. The Sensex is at 79691.9, up 0.82%. Zee Entertainment Enterprises Ltd has gained around 5.35% in last one month. Meanwhile, Nifty Media index of which Zee Entertainment Enterprises Ltd is a constituent, has gained around 0.24% in last one month and is currently quoting at 1968.35, up 0.98% on the day. The volume in the stock stood at 377.45 lakh shares today, compared to the daily average of 90.62 lakh shares in last one month.The PE of the stock is 18.49 based on TTM earnings ending September 24.Powered by Capital Market - Live