Emkay Global Financial is bullish on Zee Entertainment has recommended buy rating on the stock with a target price of Rs 335 in its research report dated November 02, 2023.
Emkay Global Financial’s research report on Zee Entertainment
Zee’s stock rallied over 12% last week, after a decline of ~15% from Aug (post NCLT merger approval) to Oct, when the market also took a fall. A major portion of this rally has come post SAT’s order, setting aside SEBI’s ruling, which had restricted Punit Goenka from holding Directorial position or KMP in any listed company, including Zee. After an uncertain period regarding top management of the merged entity, the market believes Punit Goenka’s return is positive owing to perception of his superior execution skills. This order paves the way for his appointment as MD of the merged entity and minimizes the risk of further delay of the merger. We now expect re-listing of the merged entity in Jan-24.
The stock trades at 8.4x Sep-25 broadcasting EV/EBITDA, which is reasonable. We maintain BUY, with TP of Rs335/sh (9.5x Sep-25E broadcasting EV/EBITDA), with a comprehensive review under way, owing to the merger.
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Zee Entertainment – 04 – 10-2023 – emkay
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