Q4FY19 results highlights
Key positives: Strong ad rev. growth despite NTO uncertainty.
Key negatives: BS weakened (sharp increase in inventory/other assets).
Impact on financials: Cut FY20E/21E EPS by 4% each.
Valuation & View
Z’s traditional business continues its strong performance led by improving viewership market-share. While there is a mad rush in the industry to hoard content, Z is being very aggressive here and which is a near-term negative (as it weakens the BS) but builds further competitive advantage in the business from a medium-term perspective. No auditor qualifications would put some unwarranted rumours to rest. It is of prime importance now that Z consummates a deal (whether with a strategic or a financial investor) so that the promoter loan against shares issue is resolved and the market starts revaluing the co on fundamentals rather than deal based news flow. We are keeping the faith and maintain OP rating on Z with a revised PT of Rs480 (25x FY20E EPS, revised from 28x).​
Zee Entertainment Enterprises is an integrated media and entertainment company engaged in broadcasting and content development, production and distribution of films via satellites. Co. is engaged in Hindi entertainment and movies; English content programming; sports channels and programming; religious and alternate lifestyle programming; music channels; special interest channels; and high definition channels with varied programming in over 169 countries globally. Also, on Zee Bollyworld channel, Co. dubbs or subtitles movies and series in English, French, Arabic, Russian, Mandarin and Melayu- Bahasa.
IDFC Securities Ltd., a subsidiary of the Infrastructure Development Finance Company (IDFC) wherein the Government of India holds a 20% interest, is India's leading equities broker catering to most of the prominent financial institutions, both foreign and domestic investing in Indian equities. A research team of experienced and dedicated experts ensures the flow of critically investigated stock ideas and portfolio strategies for our clients. Our coverage spans across various growth sectors such as agriculture, automobiles, Consumer Goods, Technology, Healthcare, Infrastructure, Media, Power, Real Estate, Telecom, Capital Goods, Logistics, Cement amongst other sectors. Our clients value us for our strong research-led investment ideas, superior client servicing track record and exceptional execution skills.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.