Shares of Zee Entertainment Enterprises Ltd climbed 2.18% to ₹100.32, after brokerage firm Nuvama retained a ‘buy’ rating on the stock with a target price of ₹185 per share, implying an 89.2% upside from the current market price of ₹97.78.
Key Highlights:
- Promoters increased stake: Zee’s promoters recently acquired 2.7 million shares worth ₹27 crore through open market transactions, raising their stake to 4.28%. This move indicates their confidence in Zee’s long-term growth potential, which could positively impact investor sentiment.
- Subscription revenue growth: The company has reported seven consecutive quarters of subscription revenue expansion, showcasing strong demand for its content.
- Advertising revenue outlook: While advertising revenue remains weak, Nuvama anticipates a recovery from Q2FY26, driven by urban demand revival and improving FMCG sector gross margins.
- Attractive valuation: Zee is currently trading at just 10x P/E, which Nuvama believes makes it a compelling investment opportunity.
Stock Details:
- Current Price: ₹100.32 (+2.18%)
- Previous Close: ₹98.18
- Day’s Range: ₹98.29 – ₹101.13
- 52-Week Range: ₹89.32 – ₹168.70
- Market Cap: ₹96.46 billion
- Average Volume: 10.50M
- P/E Ratio: 19.15
- Dividend Yield: 0.99%
- Primary Exchange: NSE
Outlook:
Nuvama expects Zee’s subscription strength, ad revenue recovery, and long-term fundamentals to drive future growth. The promoter’s increased stake is seen as a strong positive sign, adding to investor confidence in the stock’s potential upside.
Disclaimer: The information provided is for informational purposes only and does not constitute financial or investment advice. Stock market investments are subject to risks, and past performance is not indicative of future results. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.