ZEEL - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 2.9

📺 Fundamental Analysis of Zee Entertainment Enterprises Ltd (ZEEL)

(Major Indian media and entertainment company — TV broadcasting, digital content, and film production)

✅ Positives

Valuation Comfort

P/E: 14.9 vs Industry PE: 23.7 — undervalued relative to peers

Price: ₹119 vs Book Value: ₹120 — trading near book, offers downside cushion

Debt-to-Equity: 0.03 — virtually debt-free, strong balance sheet

Institutional Interest

FII Hold ↑ 1.98%, DII Hold ↑ 0.88% — recent accumulation

Dividend Yield: 0.84% — modest but stable

⚠️ Concerns

Weak Profitability

ROCE: 9.21%, ROE: 6.79% — below ideal for long-term compounding

EPS: ₹7.34, with Qtr Profit Var: -0.88% — earnings stagnation

PAT Qtr: ₹144 Cr vs Prev Qtr: ₹189 Cr — declining profits

Negative PEG Ratio: -1.47 — indicates earnings contraction

Technical Weakness

RSI: 29.4 — oversold, but reflects bearish sentiment

MACD: -3.81 — strong bearish momentum

Price below DMA 50 & 200 — weak trend

52W Index: 44.8% — significant drawdown from highs

📉 Ideal Entry Price Zone

Entry Zone: ₹105–₹115

Near support and oversold levels

Offers better margin of safety if turnaround materializes

🧭 Long-Term Investment Outlook

ZEEL is a turnaround candidate in the media space. While its valuation and balance sheet are attractive, profitability and growth metrics are weak, and the failed merger with Sony has added uncertainty. Suitable only for contrarian investors betting on sector recovery and management clarity.

Holding Period: 1–2 years (speculative)

Reassess if ROE improves to >10% and PEG turns positive

Watch for digital monetization, ad revenue trends, and strategic clarity

🚪 Exit Strategy (If Already Holding)

Partial Exit Zone: ₹135–₹145

If price rebounds toward DMA and RSI crosses 50

Full Exit

If ROE remains <7% and EPS stagnates

If price breaks below ₹100 and fails to recover

If institutional interest reverses or strategic direction remains unclear

Reinvest: Only if ROCE improves to >12% and earnings growth resumes

Would you like a comparison with peers like Sun TV, TV18, or PVR INOX to assess sector alternatives and competitive positioning?

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