Recovery in the ad market coupled with Zee TV's improved BARC rating in Hindi GEC and focus on regional channel bouquet should help the company to garner higher than industry ad revenue growth. We expect subscription revenue to grow in mid-teens in FY19/20 -on theback of gains from digitization and monetization of DAS III/IV markets. TRAI order should consolidate the market towards top broadcasters. We expect overall investments of INR7b towards movie/music rights acquisition and movie production in FY18. RoCE should recover from FY19,driving healthy FCF. We believe a secular 16 % EPS CAGR over FY17-20 should support the premium valuations. We maintain Buy,with a revised target price of INR690(35x December 2019E EPS of INR19.8