Motilal Oswal Sees An Upside Of 40% In This Media Stock

Broking firm, Motilal Oswal has a buy call on the stock of Zee Entertainment for the long-term. The brokerage sees an upside potential of nearly 40% on the stock.

Strong growth in the next few years

"We have marginally (3-4%) revised down our FY23E/FY24E EBITDA and PAT estimate, factoring in 23% PAT CAGR over FY22-24E. We see the risk of a further downward revision, subject to the pace of revenue recovery, as high content spends could accentuate the impact. However, focus on Sony deal completion can potentially change its course and will weight on the stock more than near term earning trends. We maintain our Buy rating," the brokerage has said.

Merger with Sony

ZEE is awaiting necessary approvals from exchanges, NCLT, and CCI. "Both companies will continue to operate as separate entities until then. The sequential increase in inventory was due to delays in the release of some completed movies on account of the third COVID wave. The management expects inventory levels to reduce as the situation normalizes.

The sequential increase in inventory was due to delays in the release of some completed movies on account of the third COVID wave. The management expects inventory levels to reduce as the situation normalizes," Motilal Oswal has said.

Disclaimer

The stock has been picked from the brokerage report of Sharekhan. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.