ZEEL India share price Technical Analysis
ZEE Entertainment Ltd. share price (ZEEL India share price) looking strong in its technical chart with strong trading volume over the last few trading days. The trading volume of the script is above 100 DMA during this period. It seems the counter is ready to move up sharply. ZEEL India share price crossed its previous swing high at the 280 level with strong volume. Once the stock stays above this level it will start to move up again with support from the broader market.
Again, ZEEL India share price is trading above all its short and long-term moving averages on the daily chart. It formed a golden crossover in the daily exponential moving average at 270 level. This is a good sign for the stock to move up at least 15-20%. Buy at this level or on Dip. Increasing interest in the OTT platform and merger with Sony will drive up ZEEL India share price.
ZEE Entertainment Ltd. share price looks strong in the weekly chart with strong volume over the last weeks. ZEEL India share price looks strong for both short- and long-term investments at this level. The stock is just crossing above its weekly previous swing high of 310 level. ZEE Entertainment Ltd. share price may face resistance at the 314 level. Once it closes above it, for the short term, Zeel India shares price target in 2022 can be above 374. For the medium term, the share price target can be the 440 level.
Momentum indicators RSI, ADX, and MACD of ZEE Entertainment ltd share price are looking bullish on the daily chart. One may buy on dips for a 10 to 20% gain in the short term. ZEEL India share price is trading at 28 Price to Earnings (PE) and available at 2.49 price-to-book (PB) value. Zero-debt company with a debt-to-equity ratio is 0.0 in FY22. The fundamentals of the company with a low debt-to-equity ratio make it attractive. Zeel share price target 2022 of 440 level is looking achievable, accumulate at this level or in correction.
ZEE Entertainment Ltd. is one of the fundamentally strong companies
Fundamentally, ZEEL India is a strong company. The company was founded in 1992.
- The company is one of the fastest-growing entertainment companies in India.
- Sony Entertainment has taken the majority share of this company and unlocked more value for its shareholders.
- The company reached 1.3 billion viewers around the world through linear and digital platforms.
- ZEEL India captures 16.1% of the all-India TV network share in Q1 of FY23.
- Global Monthly active users (MAU) increased by 23 Mn YoY in Q1 FY23 which reached 103.3 million.
- The Competition Commission of India (CCI) approved the merger of Zee Entertainment Enterprises Ltd with Sony Pictures Networks India Pvt. Ltd.
- As per the agreement, Sony entertainment company owns a 50.86% stake in the merged entity, while Zee Entertainment’s promoters would own 3.99%. Zee Entertainment’s public shareholders will own the remaining 45.15%.
- This merger will help the merged entity with ad price hikes, cost savings on content, on the marketing and employee front, and better bargaining power which will lead to re-rating valuation multiples on the TV segment.
- ZEE Entertainment Ltd’s services can be categorized as
- Broadcast – International and domestic
- Digital – OTT, Content delivery, Technology and innovation, Publishing
- Movies and Music – Movie production and distribution, Music publishing
- Live entertainment – Live events, Theatre
Increasing interest in the OTT platform among viewers will benefit this company.
ZEE Entertainment Ltd. Financial Analysis
ZEE5 delivered strong revenue growth of 43% year over year in Q1FY23, to reach INR1597 million as against INR1117 million in Q1FY22. As per the latest presentation, ZEE Entertainment Ltd. reported total revenue of INR 18,457 million in Q1FY23, which grew by 4% in Q1FY23.
- The company reported total revenue of INR76,304 million in FY22 (Ended Mar-22) as against INR 69,278 million in FY21 over the years.
- PAT is INR 13,389 million in FY22 as against INR 11,210 million in FY21.
- EPS (diluted) of the company went up from 11.67 in FY21 to 13.94 in FY22.
- Market cap of INR 27,067 crores as of March 31 FY22, face value INR 1.
- Return on capital employed is ~15 percent.
- Return on equity is ~10 percent in FY22.
- The company has been paying dividends consistently over the years with a dividend yield of 1.07%.
- Promoter shareholdings remain constant at 3.99% from June 2021 to June 2022.
- FIIs decreased their stake from 57.46% to 39.18% during the same time.
- DIIs has significantly increased its stake in the company from 18.62% to 30.68% during the same period.
- However, promoters have pledged all their shareholdings in the company.
ZEE Entertainment Ltd. Management
ZEE Entertainment ltd is run by strong leadership. Zee founder Subhash Chandra’s son, Punit Goenka, will continue to be the combined company’s managing director and chief executive officer. Punit has been listed among the top 100 CEOs of India, in a study published by Business Today. Rohit Kumar Gupta is the Chief Financial Officer of the company.