Zee Entertainment
M Cap: Rs 6,310cr
During the last fortnight, Oppenheimer Funds Inc bought 11.63 lakh shares, increasing its stake in the company to 10.2 per cent. Average trading volumes declined by more than 51 per cent to 2.76 lakh shares during the period and average delivery also declined to 36 per cent from 51 per cent in the previous fortnight. The stock has underperformed the market, declining more than 54 per cent in the past one year. In the September quarter, revenues grew by more than 43 per cent to Rs 572 crore, driven by advertising revenues, which contributed 50 per cent to the top line. In the face of intense competition, Zee has been compelled to increase its original content hours. This has increased programming costs which has caused a decline in EBITDA margin by 7.12 per cent to 26 per cent, as compared to that in the previous corresponding quarter. Research firm First Global recently downgraded Zee to “moderate underperform”on account of intensifying competition in the Hindi general entertainment channel space.
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