Zee Entertainment Q4 Results Review - Ad Revenue Rebounds; Recovery To Remain Gradual: Motilal Oswal

Motilal Oswal Report

Zee Entertainment Enterprise Ltd.’s revenue grew 10% YoY (8% beat) in Q4 FY24, led by a recovery in FMCG ad spending. Accordingly, Ebitda/adjusted profit after tax were up 39%/58% YoY (big beat), aided by cost control.

The management expects a recovery in ad revenue in FY25 and improvement in margins, which we have already factored into our estimates of a revenue/Ebitda compound annual growth rate of 12%/37% over FY24–26.

As a result, we largely maintain our revenue/Ebitda estimates for FY25-26. With the merger process now being called off, the company’s future growth plans would remain the key monitorable.

We maintain our Neutral rating on the stock with a target price of Rs 160/share.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.