ZEEL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.0
| Stock Code | ZEEL | Market Cap | 8,620 Cr. | Current Price | 89.7 ₹ | High / Low | 152 ₹ |
| Stock P/E | 18.6 | Book Value | 111 ₹ | Dividend Yield | 2.71 % | ROCE | 9.83 % |
| ROE | 7.58 % | Face Value | 1.00 ₹ | DMA 50 | 84.0 ₹ | DMA 200 | 96.8 ₹ |
| Chg in FII Hold | 1.12 % | Chg in DII Hold | -1.19 % | PAT Qtr | 118 Cr. | PAT Prev Qtr | 78.3 Cr. |
| RSI | 59.5 | MACD | 3.19 | Volume | 98,58,961 | Avg Vol 1Wk | 1,43,25,067 |
| Low price | 68.0 ₹ | High price | 152 ₹ | PEG Ratio | -1.02 | Debt to equity | 0.03 |
| 52w Index | 26.0 % | Qtr Profit Var | -38.0 % | EPS | 4.76 ₹ | Industry PE | 20.4 |
📊 Financials: ZEEL shows weak efficiency with ROCE at 9.83% and ROE at 7.58%, reflecting modest capital utilization. Debt-to-equity ratio is very low (0.03), ensuring financial stability. EPS of ₹4.76 supports earnings, though quarterly PAT declined (₹118 Cr vs ₹78.3 Cr previously), highlighting volatility. Dividend yield of 2.71% adds some investor appeal.
💹 Valuation: Current P/E of 18.6 is slightly below industry average (20.4), suggesting fair valuation. PEG ratio of -1.02 indicates negative growth prospects. P/B ratio (~0.81) is attractive relative to book value, but intrinsic value is limited by weak profitability. Dividend yield provides some cushion, though growth remains uncertain.
🏢 Business Model & Advantage: ZEEL operates in media and entertainment, benefiting from strong brand presence and diversified content offerings. Competitive advantage lies in established distribution and audience reach, though profitability pressures and industry disruption weigh on fundamentals.
📈 Entry Zone: Attractive accumulation near ₹78–₹85 (below DMA 200 support). Current price (₹89.7) is near fair entry, with resistance at ₹95–₹100.
⏳ Long-Term Holding: Suitable only for cautious investors with a 2–3 year horizon. Long-term holding requires earnings stabilization and growth revival. Partial profit booking advised near ₹95–₹100 resistance.
Positive
- Low debt-to-equity (0.03)
- Dividend yield of 2.71%
- EPS of ₹4.76 provides earnings visibility
- FII holdings increased (+1.12%)
Limitation
- Weak ROCE (9.83%) and ROE (7.58%)
- Negative PEG ratio (-1.02) indicates poor growth prospects
- Quarterly PAT decline (-38%)
- Stock trading below DMA 200 (₹96.8)
Company Negative News
- Profitability remains under pressure with declining PAT
- DII holdings decreased (-1.19%), showing reduced domestic confidence
Company Positive News
- FII inflows (+1.12%) reflect foreign investor confidence
- Dividend yield supports shareholder returns
Industry
- Industry P/E at 20.4 reflects moderate sector valuation
- Media sector facing disruption from digital platforms
Conclusion
ZEEL is a fundamentally weak candidate with modest efficiency metrics and negative growth prospects, though low debt and dividend yield provide some support. Entry is safer near ₹78–₹85, with profit booking advised near ₹95–₹100. Long-term holding is risky unless earnings stabilize and growth revives.