ZEEL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.6

📊 Core Financials Overview

Profitability

ROCE: 9.83% and ROE: 7.58% — modest, indicating average capital efficiency for a media company.

EPS: ₹7.29, with PAT declining from ₹156 Cr. to ₹112 Cr. — a 18.3% drop, reflecting margin pressure or one-off costs.

Debt-to-equity: 0.03 — virtually debt-free, a major strength for financial resilience.

Dividend Yield: 2.10% — decent, offering passive income while retaining growth potential.

Institutional Sentiment

FII holdings increased (+1.98%), DII holdings also rose (+0.88%) — positive institutional outlook despite recent earnings dip.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 14.7 Below industry average (21.3) — suggests undervaluation.

P/B Ratio ~1.05 Fairly priced relative to book value.

PEG Ratio -0.81 Negative — indicates earnings contraction or volatility.

Intrinsic Value ~₹135–₹145 (est.) Current price of ₹116 is undervalued by ~15–20%

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🧠 Business Model & Competitive Edge

Core Operations: Zee Entertainment Enterprises Ltd. (ZEEL) is one of India’s largest media conglomerates, with operations in broadcasting, digital content, and film production.

Strengths

Strong brand portfolio across regional and national channels.

Diversified revenue streams from advertising, subscription, and digital platforms.

Strategic expansion and innovation in OTT and content syndication

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Challenges

Recent profit contraction and weak PEG ratio.

RSI at 44.9 — neutral zone, MACD at -1.43 — bearish crossover.

Volume below weekly average — signals reduced short-term interest.

📈 Entry Zone & Technicals

DMA 50: ₹120, DMA 200: ₹125 — price is below both, indicating short-term weakness.

RSI: 44.9 — neutral, nearing oversold.

MACD: -1.43 — bearish momentum.

📌 Entry Zone: ₹110–₹115 — attractive for accumulation on dips.

🕰️ Long-Term Holding Guidance

2025 Target: ₹145–₹230

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2026 Target: ₹200–₹450

2030 Target: ₹800–₹1,500

Holding Strategy: ZEEL is a turnaround candidate with strong brand equity, low debt, and undervaluation relative to intrinsic value. Suitable for long-term investors with moderate risk appetite. Accumulate during technical weakness and hold through content and digital expansion cycles.

For detailed projections and valuation breakdown, explore MoneyMintIdea’s ZEEL forecast

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and AlphaSpread’s intrinsic valuation

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www.alphaspread.com

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moneymintidea.com

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