Zee Media Shares Rally By 7% After Exiting From NSE's Short Term ASM Framework

News broadcasting company, Zee Media Corporation witnessed a strong buying on Wednesday as the stock exited the NSE's ASM framework from today onward. Overall, the stock has zoomed by at least 6.6% on the NSE and continues to trade on a bullish note.

At the time of writing, Zee Media's stock price traded at Rs 12.05 apiece, up by 5.24% on NSE. The stock rallied by 6.6% with an intraday high of Rs 12.20 apiece in the early session.

On the previous day, the stock stood at Rs 11.45 apiece.

In a notification on Tuesday, NSE announced the list of securities that were shortlisted in the short-term ASM framework stage I. This included stocks like GMR Power and Urban Infra, Jai Corp, MPS and Pennar Industries with effect from August 23, 2023.

Apart from this, the exchange also announced the list of stocks that will be excluded from this framework effective from Wednesday onward. Four stocks have been excluded including Zee Media Corporation. The other three stocks that exited are DB (International) Stock Brokers, Dreamfolks Services, and Tasty Bite Eatables.

The NSE's ASM framework is carried by Sebi and exchanges to enhance market integrity and safeguard the interest of investors, have been introducing various enhanced pre-emptive surveillance measures such as reduction in price band, periodic call auction and transfer of securities to Trade for Trade segment from time to time.

The shortlisting of securities for placing in ASM is based on an objective criterion as jointly decided by SEBI and Exchanges covering the following parameters: High Low Variation; Client Concentration; Close to Close Price Variation; Market Capitalization; Volume Variation; Delivery Percentage; No. of Unique PANs; and PE.

The main objective of the framework is to alert and advise investors to be extra cautious while dealing in these securities, Also, it advises market participants to carry out necessary due diligence in these stocks.

During the June 2023 quarter, Zee Media reported a standalone net loss of Rs 20.19 crore, narrowing from a loss of Rs 41.40 crore in Q4FY23, however, was against a profit of Rs 4.55 crore in Q1FY23. Total revenue from operations stood at Rs 99.87 crore in Q1FY24 as against Rs 122.97 crore in Q4FY23 and Rs 150.24 crore in Q1 of the previous fiscal.

Among the positives for Zee Media shares, as per Trendlyne, would be a Debt to Equity Ratio of 0.5 which is less than 1 and healthy, implying that its assets are financed mainly through equity. Also, an interest Coverage Ratio of 2.9, higher than 1.5, indicates that the company can meet its interest payments comfortably with its earnings (EBIT).

On the other hand, among the negative factors for the stock, as per Trendlyne would be -- stock Price fell 20.5% and underperformed its sector by 37.7% in the past year; return on Equity(ROE) for the last financial year was -17.8%, less than 10%, indicating inefficient use of shareholder's capital to generate profit; Price to Earning Ratio is -7.3, which is negative; and Promoter Pledges are high with a percentage of 98.4% among others.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, znor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.