2 Stock Recommendations From Geojit: An Entertainment Stock & Auto Ancillary Stock

Geojit, a leading financial service companies in its coverage reports has asked investors to buy shares of a large cap entertainment company and a mid cap auto ancillary company. The companies are Zee Entertainment Enterprises Limited and Tube Investments of India Limited. The brokerage feels that the stock price of both the companies can surge and give good returns to investors.

Buy shares of Zee Entertainment Enterprises Limited, with a target price of Rs 239 per share
Zee Entertainment Enterprises Limited, an Indian conglomerate owned by Essel Group is a media and entertainment company engaged in providing broadcasting services. It has a market capitalisation of Rs 18,787.76 crore. The last market price of the share is 195.60 per share.

The company's Q3FY23 revenue was down flat at Rs 2,111cr due to lower advertisement revenue offset by subscription. EBIDTA and margins fell by 29.5% and 16% yearly basis along with dragging the profit after tax by 91.9% to Rs 24 crore.

According to Geojit's report, "We expect gradual recovery in ad revenue led by better sentiment with inflation easing. High single-digit subscription revenue growth, higher investments in content, marketing and technology and market share gains augur well for the company. The stock is trading at attractive valuations. We reiterate our BUY rating with a lowered, rolled forward target price of Rs. 239 based on 15x FY25E adjusted EPS."

Buy shares of Tube Investments of India Ltd, with a target price of Rs 2,768 per share
Tube Investment of India is a mid cap company which specializes in bicycles, metal formed products, and chains. It is based in Chennai and is a part of Murugappa Group. It is one of the leading product manufactures for major industries such as Automotive, Railway, Construction, Mining, etc. It has a market capitalisation of Rs 49,247.67 crore. The last traded price of the share is 2550.45 per share, it was up by 2.19% on intraday basis.

"The company's consolidated Q3FY23 revenue grew by 7.5% YoY, driven by Industrial, Metal forming and Engineering segment. However, contraction in the for bi-cycle demand restricted the full benefit. Despite lower material cost, company margin declined by 10ps YoY owing to operating de-leverage & some de-stocking in inventory at global level. Given the strong fundamentals and strategic change adopted in the company's segment mix, we value Tube Investments of India on a consolidated basis and recommend buy rating with a target price of Rs2,768.", as per the Geojit brokerage report.

Disclaimer:
The stocks have been picked from the brokerage report of Geojit, Greynium Information Technologies and the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.