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Last Updated : Jan 22, 2020 12:49 PM IST | Source: Moneycontrol.com

What should investors do with Zee Entertainment stock post Q3: buy, sell or hold?

Advertising revenue for the quarter was Rs 1,230.8 crore, a decline of 15.8 percent YoY.

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Zee Entertainment Enterprises share price fell 2.6 percent in the early trade on January 22 after the company posted a weak set of numbers for the quarter ended December 2019.

The company's third quarter (October-December) consolidated net profit fell sharply by 37.9 percent to Rs 349.4 crore, from Rs 562.4 crore in the same period last year.


Revenue from operations in Q3 dropped 5.5 percent to Rs 2,048.7 crore YoY, dented by lower advertising revenue.

Also Read - Zee Entertainment Q3 profit falls 38%, but domestic subscription revenue beats estimates

Advertising revenue for the quarter was Rs 1,230.8 crore, a decline of 15.8 percent YoY. Domestic advertising revenue declined by 15.7 percent YoY to Rs 1,157 crore.

CLSA | Rating: Buy | Target: Rs 360 per share

The company's subscriptions jumped but ad revenue declined, while other expenses included a one-time credit-loss charge of Rs 38 crore.

CLSA feels that ad growth should return in FY21, while valuation compelling at a 50 percent discount to 10-year PE.

Macquarie | Rating: Outperform | Target: Rs 425 per share

The adjusted EBITDA is in-line with our estimate, meanwhile, the company needs to work on improving market share of its flagship GEC, Zee TV.

The further delay in receivables from Dish TV & Siti is a negative.

Improvement in cash generation and stronger corporate governance to drive re-rating, it added.

Morgan Stanley | Rating: Equal-weight | Target: Rs 340 per share

Domestic ad revenue is down 16 percent as tough macro environment weighed on advertisement spends.

Subscriber revenue growth moderated on promotional reduction in a-la-carte rates, while EBITDA affected by one-time charge of Rs 37.6 crore on delay in payments from two distributors.

At 09:20 hrs, Zee Entertainment Enterprises was quoting at Rs 282.85, down Rs 1.10, or 0.39 percent on the BSE.
First Published on Jan 22, 2020 09:32 am