Zee Entertainment Q2 Results Review - Weak Revenues, Healthy Margins, Sustainability Key: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Zee Entertainment Enterprises Ltd.’s Q2 was mixed with soft ad revenues (-18% YoY, -4.3% versus estimate) but healthy Ebitda (-3.5% YoY, +18% versus estimate) led by cost saving. Adjusted profit after tax dropped by 21% YoY (+21% versus estimate) due to lower other income. After five consecutive years of Ebitda decline (FY19-24), we expect a rebound in FY25-26E. Also healthy free cash flow for the fifth consecutive quarter is another positive. We believe Zee’s financials shall benefit from-a likely improved ad outlook (due to supportive base),reduced digital losses andcost curtailment..That said, potential events like change of management or M&A which we were anticipating, seems unlikely. We reduce our FY25-27E EPS estimates by 6/5/3% to factor weaker revenues. Past five quarters improvement in C&CE is a positive but-potential contingent liabilities,impending competition from merger of TV18-Star to marginalize peers,continuity of existing MD-CEO raises the risk of capital mis allocation for a future date. .Retain ‘Buy’ rating with revised target price of Rs 175 at 16 times H1 FY27E EPS (versus Rs 180 earlier). Our Buy is driven by recent improvement in margins, C&CE, steep price correction and element of hope..Click on the attachment to read the full report:.Tata Consumer Q2 Review - Foods Continue To Fire; Tea Pricing Is Key; Margin Expansion Sustains: Systematix.DISCLAIMERThis 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.

Zee Entertainment Q2 Results Review - Weak Revenues, Healthy Margins, Sustainability Key: Dolat Capital

The brokerage retains 'Buy' rating on the stock which is driven by recent improvement in margins, C&CE, steep price correction and element of hope; revises target price to Rs 175.

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Zee Entertainment Q2 Results Review - Weak Revenues, Healthy Margins, Sustainability Key: Dolat Capital

The brokerage retains 'Buy' rating on the stock which is driven by recent improvement in margins, C&CE, steep price correction and element of hope; revises target price to Rs 175.

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