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Budget 2021

Associate Partners:

  • SMC
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  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
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Buy Zee Entertainment; target of Rs 272: Emkay Global Financial

Emkay Global Financial is bullish on Zee Entertainment has recommended buy rating on the stock with a target price of Rs 272 in its research report dated August 26, 2020.

August 28, 2020 / 04:22 PM IST
 
 
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Emkay Global Financial's report on Zee Entertainment


Under Strategy 4.0, management has increased disclosures from Q1FY21 as promised earlier, which is expected to further improve in the ensuing quarters. Cash flow improvement through a reduction in working capital requirement is key for re-rating. In our view, resolution of balance sheet issues would have driven management to increase the disclosures. Strong execution (channel launches and market share gains) in the last few years and hope of not repeating balance sheet mistakes will regain investor interest. After two years of balance sheet deterioration on account of aggressive content investments and various write-offs, the management is confident on delivering FCF/PAT of 50% from FY22E.



Outlook


We maintain our cautious stance on timely receipt of subscription receivables from Dish and Siti, as well as investments in SugarBox. The higher target multiple (15x PE on Sep’22 EPS) and the rating upgrade to Buy are predicated on changes brought in by management.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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first published: Aug 28, 2020 04:22 pm

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