Optimistic on Zee Entertainment, says Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "Zee Entertainment surprised in terms of how the subscription revenues came through. The management guidance again going forward is extremely strong. So, I think advertising growth in terms of 15-16 percent, you are probably looking at subscription growth going in double digits and that really augurs well in terms of how the topline is expected to grow for Zee over FY'17. If one really contends with the perspective that sport losses might increase further from here onwards and they have curtailed it quite reasonably over the last year, my own take is that EBITDA margins should sustain for the company with digitalisation coming through subscription revenues thta can go to the mark which the management is talking about." "The AD yields can be quite reasonable going forward with spending coming through both from the ecommerce players as well as the FMCG players. The only headwind probably can be the historical valuations and the current valuations that Zee is deriving. However, I think the business model looks quite robust," he said."In my opinion, I think the stock is expected to do well. I remain optimistic on the stock and a clear disclaimer we might be holding this on behalf our clients."