Interesting watch
CLSA has maintained a āHoldā on Zee Entertainment with a target price of Rs 150 after the media company got approval of shareholders to raise Rs 2,000 crore through various routes, including issuing equity shares and qualified institutional placements (QIPs).
According to analysts at CLSA, despite having a cash reserve of Rs 1,200 crore and low capital expenditure requirements, Zeeās decision to pursue a fund-raising plan has raised some questions.
The company has moved past its peak investments in OTT platform Zee5 and has met its working capital requirement, the CLSA note said.
Source: Money Control
Disc: 3% of pf
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at 129, ZEEL is at a good support. Plan to add ZEEL in portfolio.
Hi folks,
i previously bought ZEE due to merger play then had to sold it to cut my losses.
Now after so much correction the stock is at 30 P/E well below industry median but i donāt see any growth triggers, @shyamutty would love to know your thoughts
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Zee Music Company on YT has around 111M Subs. Company hasnāt disclosed revenue from music division till date. VIDIQ YT stats indicates $1MM-3MM in monthly earnings. Conservatively thatās ~100crs of annual revenue just from YT, and I havenāt taken into account licensing revenue(tie up with Insta) or revenue from streaming services. What am I missing? Just carving out Zee Music should contribute as much to Mcap as much as Zee Enterprises.
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Isnāt this company the most attractive acquisition target?
ZEEL is currently trading at a market cap of ā¹8,941 Cr, with investments worth ā¹640 Cr, cash equivalents of ā¹1,179 Cr, and a manageable debt of ā¹309 Cr ā effectively holding ā¹1,500 Cr in cash.
The current promoter holds only a 4% stake, and impressively, the company hasnāt reported a single loss making year in the last 12 years, consistently generating solid profits.
In an industry with so many mergers and acquisitions, a hostile takeover with a strategic management shift could unlock significant shareholder value.
What am i missing?
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Too many red flags is what you are missing. There are too many competitors for television channels and most consumption is moving to mobile screens rather than TV. Zee has reported large losses in exceptional items each quarter for the last 3 years straight.
The founder is a fraud and there have been numerous actions by SEBI against them.
Other 2 Zee companies Zee education and Siti Networks are also doing badly. So, who knows if the money is there or not. The books might be very well be 100% cooked.
There are 2 possible buyers - Reliance or Adani. None are in a hurry. Reliance owns half of the media, Adani is another fraud. So no, unless Zee goes to like 20 bucks a stock, no one is going to acquire it.
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