MK Global Financial is bullish on G Entertainment’s research report dated November 2, 2023, which recommends a buy rating on the stock with a price target of 335 rupees.
Research report on Zee Entertainment by Emkay Global Financial
Zee’s stock price rose more than 12% last week after falling around 15% from August (after NCLT merger approval) to October, when the market also fell. Most of this rise was in the wake of the SAT order, apart from the SEBI ruling that restricted Punit Goenka from holding directorships in listed companies including Zee and KMP. Although there has been a period of uncertainty regarding the top management of the merged company, the market believes that Mr. Punit Goenka’s excellent execution skills will be appreciated and his return will be a positive. The order paves the way for him to be appointed to the combined company’s board of directors, minimizing the risk of further delays to the merger. Currently, the combined company is scheduled to be relisted in January 2024.
Outlook
The stock trades at 8.4x broadcast EV/EBITDA on September 25th, which is a reasonable level. TP maintains his BUY at Rs 335/sh (9.5x broadcast EV/EBITDA till September 25) as the company is undergoing a comprehensive review due to merger.
Click here for all recommended reports
Disclaimer: The views and investment tips expressed by investment professionals, brokerages and rating agencies on Moneycontrol.com are their own and not the views of the website or its management. Moneycontrol.com advises users to check with certified professionals before making any investment decisions.
Zee Entertainment – 04 – 10-2023 – emkay
Check out the latest business news, Sensex, Nifty updates. Get Personal Finance insights, tax questions and expert opinions on Moneycontrol or download the Moneycontrol app to stay updated.
