ZEE Entertainment shares rally 5% after Q4 results. Should you buy, sell or hold?

ZEE has said that it will see most of the one-time higher costs towards implementing the interventions in the current quarter, offsetting underlying operating performance improvements and causing softness on margins.

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Here’s how view the results:

Goldman Sachs

The partial recovery in revenues was appreciable. However, margins remained subdued coupled with a weak EBITDA profile at 9.7% for the fourth quarter. Goldman has cut its fY25-27 revenue/EBITDA estimate forecasts by 5%-8%/30%-37%.

The global brokerage has a ‘neutral’ view on the stock with cut down to Rs 167.

Nuvama

Zee Entertainment posted Q4FY24 revenue/EBITDA (up 2.7%/38.5% YoY) beating Nuvama’s estimates. Overall, the brokerage increased FY25E/26E forecast by 1.4%/2.6% on the back of improving outlook for FMCG advertisers, but cut EPS by 19%/6% as ZEE is transitioning towards a more focused structure, entailing high one-time costs in FY25.

has upgraded the stock to ‘buy’ from an earlier ‘reduce’ with a revised target of Rs 180.

Emkay Global

Domestic brokerage firm Emkay Global said it is building in some recovery on the front for ZEE (7% growth in FY25E/26E) aided by a lower base and persistent recovery in overall ad spending. Subscription revenues should see an uptick due to price hikes. Margins should also improve on account of multiple interventions, though Emkay reiterated that a significant re-rating should happen in case of a new buyer/partner. Any unfavorable decision in legal cases the company is involved in could be a key risk.

Emkay has maintained a ‘reduce’ rating on the stock with an unchanged target price of Rs 150.

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