The share price of Zee Entertainment Enterprises fell 4 percent intraday to RS 280.15 on February 3 after the company reported a weak set of numbers for the quarter that ended in 2021.

Zee Entertainment Enterprises on February 2 report the consolidated net profit of Rs 298.98 Crore for the December quarter, down from Rs 398.01 Crore in the period last year, the company said in BSE archiving.

The total revenue during the quarter reviewed was Rs 2,130.44 Crore, lower than Rs 2,756.93 Crore in the quarter according to the previous year.

According to the company, the result for the quarter ended in December was not comparable to last year’s period due to disruption caused by the coronavirus pandemic.

His income from advertising was at Rs 1,260.80 Crore in the October-December quarter against Rs 1,302.03 Crore in the last year period.

Subscription income is Rs 790.15 Crore in the December quarter. It stood at RS 841.91 Crore at Q3 FY 2020-21.

This is what the broker said about stock and company after December quarter income:

Oswal Maleral.

Continuation in advertisements was spent by FMCG players and rising prices of RM in various sectors pose a risk of recovery in advertising growth.

A series of new content launches and investment in OTT must increase the market share of the network and maintain better KPI Zee5.

We have marginal (3-4 percent) revise our EBITDA FY23E / FY24E, factoring in the 23 percent Pat CAGR through FY22-24E. We see the risk of downward revisions further, subject to the speed of revenue recovery, because high content hajur can highlight the impact.

We appreciate the Zee on EPS 25X FY24E, with the target price of RS 410 against the previous RS 425. We maintain our “buy” rankings.

Prabhudas Lilladher.

While the performance of Zeel was optically witnessed a decline due to indication income accruals with RS 5,512 million tones in the basic quarter, a decrease in domestic advertising revenue of 3.1 percent yoy to discourage.

The high base, cut-back in spending FMCG ads and decreases in network sharing causes a decrease in advertising revenue. However, given the sustainable investment in content, we expect a gradual increase in the share of viewers.

Our EPS FY23 / FY24 estimate is widely intact and we maintain purchases on Zeel at RS 413 target price (EPS 23X FY24 of RS 18 including the benefits of the synergy of the merger obtained from the Consolidation of SPNI).

Short-term pressure on margins and subscription income due to the implementation of NTO 2.0 is the main risk of our calls.

Elara’s capital.

Zee is trading on 20x FY23E income and 17.3x FY24E income, which remains cheap, in our view. However, Rating will occur only if the transition merger with Sony is synergistic and the results of the digital strategy after both companies go to the shared market.

We repeat our “buy” rankings at the RS 450 target price based on 20x one year in the next P / E.

Citi.

The research company has maintained a “buying” ranking in stock with a target at Rs 350 on the back of a weak operating metrics.

Settlement of the merger with Sony remains the key. In addition to NCLT and other approval, it is necessary to monitor how the main shareholders choose.

CLSA.

The broker’s house has maintained a “buy” call, with the target at RS 427 because Q3 income is in line, led by advertising revenue.

Zee-Sony merger sees stable progress.

Litigation with large minority shareholders brings related risks.