Zee Entertainment Enterprises Ltd. share price target

ZEE announced completion of the due diligence and final contours of the deal. SONY and ZEE's promoters will hold 51%/4% in the merged entity, while the rest will be held by the public. There will be a fresh capital infusion of INR113b (USD1.6b) by Sony, including the INR11b as non-compete fee to ZEE's promoters, which will be utilized to increase its stake to 4% from 2% in the merged entity. The merged entity is valued ~17x FY20 EV/EBITDA and 22x P/E. On a SoTP basis, the merged entity's linear business is estimated to be valued at 11-12x...

Zee is expected to fare much better in Q3FY22 on the back of opening of theatres, strong performances of new launches and expected new launches and the proposed merger. We reiterate our rating on the stock...

recovery in 2H 2) digital business has started gaining momentum (revenue up 17% QoQ) on the back of engaging content catalogue and 3) uncertainty surrounding boardroom decision risks is expected to reduce given the impending merger with SPNI (due diligence has started and is expected to be complete within stipulated timeline). Maintain BUY with a revised TP of Rs399 (Rs405 earlier) valuing the stock at 23x FY24 EPS of Rs17.3 (inclusive of merger synergy benefits). Near term pressure on margins and subscription revenues due to implementation of...

of pandemic. Ad revenues grew by a hefty 17.6% qoq and 20.7% yoy. Post a very subdued Q1 showed a good improvement in its numbers. EBITDA margins stepped up to 20.8% as ad revenues increased and programming costs as a % of sales moved down at 45.7% from 48.8% qoq and 48.4%...

The company's TV network viewership share improved 70 bps QoQ to 17.7%, albeit lower than Q2FY21 market share of 19% due to relatively soft performance in segments such as Marathi, Tamil and Hindi GEC...

About the stock: Zee Entertainment (Zee) is one of the largest listed media The Goenka's (current Zee promoter) stake shall remain at 4% in the combined entity, will incremental 2% to be given by SPNI for non-compete....

Puneet Goenka to continue as MD&CEO; for 5 years with promoter family having an option to increase stake from 4% to 20%. ZEEL's proposed merger with SPNI is a win-win situation, as it will likely 1) result in material revenue synergies (~6-10% due to better scale & reach) 2) drive growth, as merged entity will have cash ammunition of US$1.7bn to fund digital ambitions and 3) absolve uncertainty surrounding board room...

ZEE5 is showing improving traction and can lead to re-rating over time. ~18% in equity have called for an EGM to reconstitute the current board. current MD&CEO.; Further, institutional investors have also suggested inducting six new names into the board. While the existing management had taken steps to improve corporate governance & disclosure practices, given...

Revenues at | 1,775 crore were up 35.3 YoY, down ~10% QoQ, with ad revenues up 120% YoY to | 927 crore, on a depressed base of Q1FY21 but down 20% QoQ. Overall subscription revenues grew 2% YoY to | 813 crore,...

We revise down our EBITDA/PAT estimate by 12% for both FY22/FY23 for the second straight quarter (after last quarter's 57% cut), factoring in FY23 EBITDA at 16% above FY20 levels as weak recovery, coupled with an intensifying content spend, should hurt earnings. Maintain Neutral. Consolidated revenues grew 35% YoY to INR17.7b (-10% QoQ; 5% beat), as ad revenue was up 2.2x YoY, driven by the lower impact of the second COVID wave v/s the first wave. Compared with pre-COVID levels (1QFY20), domestic ad revenues were lower by 22.7%....