Buy Zee Entertainment Enterprises, target price Rs 430: Emkay Global

Emkay Global has buy call on Zee Entertainment Enterprises with a target price of Rs 430. The current market price of Zee Entertainment Enterprises is Rs 348.1.

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 33680.48 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 30-09-2021, the company reported a 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 % from last year same quarter Total Income of Rs 1760.61 Crore. Company reported net profit after tax of Rs 266.04 Crore in latest quarter.

Investment Rationale
The brokerage has adjusted pro-forma estimates assuming that the benefits from the merger will start reflecting from FY24 vs. FY23 earlier. It maintains Buy with a revised Mar’23E TP of Rs430 (11x Mar’24E pro-forma broadcasting EBITDA).

Promoter/FII Holdings
Promoters held 3.99 per cent stake in the company as of 30-Sep-2021, while FIIs owned 57.18 per cent, DIIs 15.98 per cent.