Zee is trading at 31/27x FY19/20E EPS. Valuations are rich but sustainable given Zee's focused strategy, superior execution, constant investments and profitable growth. BUY with TP of Rs 575 @ 32x Sep19E EPS. Zee Entertainment (Zee), a leading player in the Indian entertainment space reported modest operating performance owing to GST headwind. Like-to-like revenue grew by 6.6% YoY to Rs 15.8bn (excluding hived off sports business in 4QFY17); EBITDA declined by 3% to Rs 4.9bn.