Buy Zee Entertainment Enterprises, target price Rs 410: Emkay Global

Emkay Global has buy call on Zee Entertainment Enterprises with a target price of Rs 410. The current market price of Zee Entertainment Enterprises is Rs 283.35.
Time period given by analyst is one year when Zee Entertainment Enterprises Ltd. price can reach defined target.

Zee Entertainment Enterprises Ltd., incorporated in the year 1982, is a Large Cap company (having a market cap of Rs 27614.83 Crore) operating in Media & Entertainment sector.


Zee Entertainment Enterprises Ltd. key Products/Revenue Segments include Income From Advertisement, Subscription Income, Television Content, Transmission Revenue, Other Operating Revenue and Commission for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 2130.44 Crore, up 5.97 % from last quarter Total Income of Rs 2010.47 Crore and down -22.72 % from last year same quarter Total Income of Rs 2756.93 Crore. Company reported net profit after tax of Rs 298.91 Crore in latest quarter.

Investment Rationale
The brokerage have cut FY22-24 EPS estimates by 7-10% due to the weak Q3 ad revenue print and continued uncertainties regarding domestic subscription revenues. It maintains Buy with a revised Mar'23E TP of Rs410 (11x Mar'24E pro-forma broadcasting EBITDA).

Promoter/FII Holdings
Promoters held 3.99 per cent stake in the company as of 31-Dec-2021, while FIIs owned 52.21 per cent, DIIs 20.86 per cent.