⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ZEEL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | ZEEL | Market Cap | 7,849 Cr. | Current Price | 81.6 ₹ | High / Low | 152 ₹ |
| Stock P/E | 16.9 | Book Value | 111 ₹ | Dividend Yield | 2.98 % | ROCE | 9.83 % |
| ROE | 7.58 % | Face Value | 1.00 ₹ | DMA 50 | 91.3 ₹ | DMA 200 | 108 ₹ |
| Chg in FII Hold | -1.22 % | Chg in DII Hold | -1.94 % | PAT Qtr | 118 Cr. | PAT Prev Qtr | 78.3 Cr. |
| RSI | 38.0 | MACD | -2.87 | Volume | 43,78,039 | Avg Vol 1Wk | 78,18,601 |
| Low price | 78.4 ₹ | High price | 152 ₹ | PEG Ratio | -0.93 | Debt to equity | 0.03 |
| 52w Index | 4.37 % | Qtr Profit Var | -38.0 % | EPS | 4.76 ₹ | Industry PE | 17.3 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT improved sequentially from 78.3 Cr. to 118 Cr., but YoY profit variation is negative (-38%), showing earnings volatility.
- Margins & Returns: ROCE at 9.83% and ROE at 7.58% indicate modest efficiency and profitability.
- Debt Ratios: Debt-to-equity at 0.03 reflects negligible leverage, ensuring financial safety.
- Cash Flows: Dividend yield of 2.98% provides decent shareholder returns despite weak profitability.
💹 Valuation Indicators
- P/E Ratio: 16.9 vs industry average of 17.3 → trades close to fair value.
- P/B Ratio: Current Price / Book Value ≈ 0.73 → undervalued relative to book value.
- PEG Ratio: -0.93 → negative, signaling weak growth outlook.
- Intrinsic Value: Current price (81.6 ₹) appears undervalued compared to book value, but growth concerns limit upside.
🏢 Business Model & Competitive Advantage
- Operates in media and entertainment with strong brand recognition in broadcasting.
- Diversified content portfolio across TV, digital, and regional markets.
- Weak profitability and declining institutional confidence limit competitive strength.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 78 ₹ – 82 ₹, near 52-week low support.
- Long-Term Holding: Suitable only for investors seeking turnaround potential; staggered buying recommended due to weak growth signals.
✅ Positive
- Dividend yield of 2.98% provides steady income.
- Sequential PAT growth from 78.3 Cr. to 118 Cr. shows short-term recovery.
- Low debt-to-equity ratio (0.03) ensures financial safety.
⚠️ Limitation
- Weak ROCE (9.83%) and ROE (7.58%) compared to peers.
- Negative PEG ratio (-0.93) signals poor growth outlook.
- Quarterly profit variation (-38%) highlights earnings volatility.
📉 Company Negative News
- Stock trading below both 50 DMA (91.3 ₹) and 200 DMA (108 ₹), indicating weak momentum.
- RSI at 38.0 and negative MACD (-2.87) suggest bearish technical outlook.
- Decline in both FII (-1.22%) and DII (-1.94%) holdings shows reduced institutional confidence.
📈 Company Positive News
- Sequential PAT improved from 78.3 Cr. to 118 Cr.
- Dividend yield of 2.98% supports shareholder value.
🏭 Industry
- Industry P/E at 17.3 indicates sector trades at similar multiples.
- Media and entertainment sector benefits from rising digital consumption and advertising demand.
- ZEEL trades close to fair value but remains undervalued relative to book value.
🔎 Conclusion
ZEEL shows modest fundamentals with low debt and decent dividend yield, but faces weak efficiency, earnings volatility, and bearish technical signals. Entry is advisable near 78 ₹ – 82 ₹ for speculative investors, with staggered accumulation to mitigate risks. Overall, ZEEL remains strategically positioned in media and entertainment, though growth outlook and institutional sentiment warrant caution.