Most analysts bullish on ZEE, but cut targets

Most brokerages have maintained a bullish view on Zee Entertainment Enterprises (ZEE) after its March quarter earnings but cut target prices and estimates as advertising revenues are facing the heat from steep inflation. Shares of Zee Entertainment ended up 3.3% at ₹237.35 on Friday.

Zee Entertainment reported a consolidated net profit of ₹81.93 crore for the March quarter compared to a profit of ₹272.36 crore for the same period a year ago. Its total income in the quarter stood at ₹2,361.17 crore compared to ₹1,984.39 crore in the year-ago period.

Axis Capital, Citi, Motilal Oswal, Edelweiss and Emkay have maintained a buy rating on the stock while Credit Suisse retained outperform rating. Axis Capital lowered the target price to ₹340 from ₹405, Citi and UBS maintained a target price of ₹350, and Edelweiss lowered the target price to ₹420 from ₹428.

Emkay highlighted that Zee's market share recovery was uneven this year, with the March quarter seeing a further decline in network share to 17.1%. The brokerage added that the long-term story with merger synergies is likely to keep Zee ahead of its competitors.