Zee Media Corporation Ltd. share price target

Owing to debt levels at promoter level, Zee Media along with other group companies' shares were pledged. In January 2019, 72.92% of promoter's 67.02% stake of Zee Media Corp was also pledged, after which there was a sale of shares by some lender/promoter over the said concerns. Currently, promoter holding in Zee Media as of June 2019 is at 55.12%, out of which 93.55% is pledged. We also note the uncertainty faced by Zee Media (saw a sharp correction of 63% in stock price last year). Moreover, promoters also made clear what their priority would be given Zee Entertainment and Dish...

Regional channels reported an EBITDA margin of ~27% in 9MFY19 (above market benchmark and higher than ~25% margin reported by national channels over the same period). ZMCL reported topline growth of 22.7% YoY to Rs1,942.2mn led by strong performance across national & regional channels aided by election tailwind and delayed festivities. In the national bouquet, Zee News witnessed a yield increase of ~3% QoQ while Zee Business' market share during stock market hours increased to 35.5% in 3QFY19. Within the regional bouquet, Zee MPCG...

We, had come out with Idirect Instinct on Zee Media (ZMCL) in September, 2017. As a recent development, the company confirmed that due to expiry of the MoU signed between the company and Big FM for acquisition of radio channels, the deal stands called-off as of now and we exclude the radio valuations from our target price. Nevertheless, we highlight that ZMCL is in a sweet spot after de-merger of loss making print business and sale of online shopping business. Moreover, it remains a quasi-play on elections (both states and national) given its respectable no....