In the previous day's trade, we saw one of the media stock ending with magnificent gains of 40%. This was some of the biggest investors in the scrip sought the conduct of an EGM for the removal of the company's MD. Other than the MD and CEO, the company's biggest investor looked upon for removal of 2 more directors of the company.
At the AGM, there was a miss given to the prime concern i.e. the notice sent by the company's largest shareholder. Notably the AGM has been organized amid a time when the company's biggest shareholder, Investor and OFI asked the company to organize an EGM for removing Goenka and 2 independent directors.
While the Goenka did not refer to the notice, he instead talked about Zee 4.0 plan.
Now what's next for the scrip?
Elixir Equities in a leading business provided that the seeking rejig at the company is a wise step as the current management has diminished the value of Zee by a significant quantum. And now as the stock has underperformed, it is high time to go about bringing about an overhaul at the company's management. The company is a good brand and a change of management may trigger the stock price to move higher.
Rakesh Jhunjhunwala buys stake in the firm Zee
On the previous day, ace investor buys 50 lakh shares of the firm at Rs. 220.4 per share. The interest in the scrip by the ace investor was seen after Manish Chokhani and Ashok Kurien resigned from the position of Non-Executive Non-Independent Directors of the company with immediate effect earlier in the day.
There is a view that the stock may see re-rating and ""Prima facie if you look at the situation and if the new management does come in, we do see a rerating trigger here,"said- senior VP-research analyst, Elara Securities. The entire overhang was around the corporate governance and some new write-offs which could probably be coming for the company, he added.
So, there can be a possible traction yet again today and with fundamentals being strong and a possible re-rating in the offing we may see again see the scrip to see upmove.
In early trade on Wednesday after the AGM, the stock hit an upper circuit of 10% at a price of Rs. 287.7 per share.