Zee Entertainment Enterprises Ltd. (ZEEL) saw its shares surge 5% after global brokerage CLSA reaffirmed its ‘Outperform’ rating, setting a target price of ₹170. CLSA cited Zee’s attractive valuation and strong earnings recovery potential as key drivers. As of 9:44 AM, the shares were trading 4.91% higher at Rs 105.21.
At a current P/E of just 8x, Zee is significantly undervalued compared to industry peers. The brokerage highlighted that Zee’s advertising revenue growth will be the key catalyst for stock re-rating. As India’s second-largest TV network, the company is ramping up investments in its OTT platform, ZEE5, to capture the growing digital audience.
Zee’s EBITDA margin has expanded by 9 percentage points from its lows, showcasing operational improvements. Additionally, the company maintains a strong balance sheet with zero debt and ₹17 billion in cash reserves.
Even with a conservative 6% YoY growth in advertising revenue, Zee is expected to achieve EBITDA and PAT CAGRs of 22-33% over FY26-27. CLSA noted that Zee is trading at a 60-80% discount to the Reliance-Disney JV and Sun TV. If investor sentiment improves, Zee’s market cap could potentially double in the next 12-24 months.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
Zee Entertainment shares opened at ₹103.00 on Thusday, reaching a high of ₹106.84 and a low of ₹102.61 during the session. The stock remains well below its 52-week high of ₹168.70 but above its 52-week low of ₹89.32.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.