“This shall boost the confidence of minority investors,” Nuvama wrote in its note.
Nuvama has a “buy” rating on Zee Entertainmentwith a price target of ₹185 over the next 12 months, implying a potential upside of over 83% from current levels.
Zee Entertainment’s subscription revenue remains strong with seven consecutive quarters of expansion in the December quarter. Advertising revenue, currently weak, can start recovering by the second quarter of financial year 2026, led by urban demand recovery, Nuvama’s note said.The company’s focus is currently on four verticals, linear, digital, movie and music. Gaming is another opportunity Zee is evaluating and is open to inorganic opportunities as well, according to the Nuvama note.
On the valuation front, Zee Entertainment trades at 10 times price-to-earnings, compared to a one-year average of 14 times.
20 analysts have coverage on Zee Entertainment, out of which 10 of them have a “buy” rating, while five each have a “hold” and “sell” rating on the stock.
Shares of Zee Entertainment are trading 3.8% higher at ₹101.9. The stock is down 7% in the last one month.
