INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Many foreign brokerages have maintained their buy ratings on Zee Entertainment as the stock now trades at a deep discount to
Nomura India said there is no change in business fundamentals after Friday's correction in the stock price
A large part of the correction in the stock price was in the futures and options segment, and actual deliveries were much lower, it said
The company has strongly denied the report and on Sunday said it has reached a deal with lenders on not invoking shares of the company if
the stock price falls further.
Deutsche Bank in a note said promoters' intention to sell up to 50 per cent of their shareholding to a
assets, one deal is done (expect funds to come in very shortly - weeks/months)
Solar and road asset deals too should see full consummation to happen in 3-6 months
EV of the three infra asset sale is upwards of Rs 20,000 crore with equity value of Rs 8,000-9,000 crore
said.
On Monday, the scrip rose 14.29 per cent to hit a high of Rs 365 on the BSE
The promoter group of the company has said the stake sale process in Zee is at an advanced stage and will be met within the stated
timeline.
The management on Monday said 96-97 per cent of the lenders have agreed not to invoke shares if the shares fall further
investor call.
There is standstill on part of lenders for now, Goenka said
The management said stake sale in Zee will not be hit by recent developments.
Following the revocation of company shares on Friday, promoter
holding has dropped 60 basis points to 41 per cent, the management said
That said, the brokerage has retained its buy call on the stock as it sees valuations compelling at 16 times FY20 PE, a 45 per cent
discount to 10-year average PE.
Deutsche Bank values Zee at 28 times March 2020 earnings, a 15 per cent discount to its five-year average
it sees 19 per cent earnings CAGR over 2019-21.