Hold Zee Entertainment: target of Rs 250: ICICI Direct
ICICI Direct recommended hold rating on Zee Entertainment with a target price of Rs 250 in its research report dated February 05, 2021.
February 10, 2021 / 06:52 PM IST
ICICI Direct's research report on Zee Entertainment
Zee Entertainment reported a good set of Q3FY21 numbers with growth in ad and subscription revenue. Revenues grew sharply by 33.2% YoY to Rs 2729.4 crore owing to content syndication deal of Rs 551.2 crore. Domestic ad increased 7.5% YoY to Rs 1244.3 crore during the festive quarter while on comparable basis, domestic subscription grew 9.3% YoY driven by both TV business and Zee5. Reported EBITDA came in at Rs 715.7 crore, up 26.5% YoY with margins at 26.2% YoY. Consequently, reported PAT jumped 14.4% YoY Rs 399.9 crore.
We roll over valuations to FY23E and maintain HOLD rating with a target price of Rs 250/share (vs. earlier TP: Rs 195).
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