Moneycontrol

Budget 2021

Associate Partners:

  • SMC
  • Samsung
  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
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Buy Zee Entertainment Enterprises; target of Rs 290: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Zee Entertainment Enterprises has recommended buy rating on the stock with a target price of Rs 290 in its research report dated January 05, 2021.

January 14, 2021 / 08:55 PM IST
 
 
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Prabhudas Lilladher's research report on Zee Entertainment Enterprises


We initiate coverage on Zee Entertainment Enterprises Ltd (ZEEL) with a BUY rating amid 1) concrete steps taken to strengthen governance and enhance disclosure levels 2) consistent improvement in viewership share (increased from 11.6% in CY11 to 18.4% in CY19) and 3) likely emergence of ZEE5 as future growth engine in the changing global content consumption paradigm. We expect revenue CAGR of 4.1% over FY20-23E backed by increasing viewership share, launch of 4 regional channels (Zee Punjabi, Zee Thirai, Zee Picchar and Zee Bispoke), increasing viewership of HD channels (16 channels, 35% HD penetration) and selective price hikes. Adjusted EBITDA/PAT CAGR is expected to be at 3.5%/0.5% over FY20-23E on higher content cost related to new channels and ZEE5. We believe ZEE5 is one of the strongest content platforms and can be a major growth and re-rating driver in coming years.


Outlook


Initiate BUY with a TP of Rs290 (16x FY23 EPS of Rs18). Non-core investments, related party transactions, contingent liabilities and accelerated inventory amortization are key risks to our call.


For all recommendations report, click here


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first published: Jan 6, 2021 01:05 pm

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