Zee Entertainment shares extend gains, jump 10% today amid heavy volumes

Shares of Zee Entertainment Enterprises Ltd rose sharply in fag-end trade on Friday amid heavy volumes, extending their gains for the fifth straight session. The stock jumped 10 per cent to hit an intraday high of Rs 207.55. It eventually settled 9.41 per cent higher at Rs 206.45 over a previous close of Rs 188.70. Around 26.89 lakh shares changed hands today on BSE, which was more than four times higher compared to the two-week average volume of 6.71 lakh shares. Turnover on the counter stood at Rs 53.68 crore, commanding a market capitalisation (m-cap) of Rs 19,748.28 crore. There were 2,78,299 buy orders today against sell orders of 47,019 shares.

At today's closing price of Rs 206.45, the stock has rebounded 19.86 per cent from its 52-week low of Rs 172.25, a level seen on June 20, 2023. That said, it has declined 28.04 per cent from its one-year high price of Rs 286.90, hit on October 6 last year.

Nuvama Institutional Equities said, "In Q1 FY24, we expect revenue to increase by 4 per cent year-on-year (YoY) and EBITDA to decline by 59.30 per cent YoY. EBITDA margin in Q1 FY24 will remain under severe pressure for Zee due to higher losses in Zee5 and higher other costs including salary expenses. We expect moderate growth in advertising for this quarter. Subscription revenues are likely to grow 2-3% YoY. With margins coming back for FMCG sector, we expect gradual recovery in ad spends in the coming quarters."

The brokerage also said: "We continue to wait for approvals for the Zee-Sony deal. The Zee-Sony merger has seen huge delays and remains a key monitorable for the stock to re-rate."

The much-hyped merger between two stalwarts, Zee and Sony Group Corp, has been seeing delays due to various reasons. A definitive merger agreement between Zee and Sony was signed in December 2021.

On Thursday, the National Company Law Tribunal (NCLT) has adjourned the hearing in Zee-Sony merger matter till next week. The NCLT would now hear the case on July 10.

In a separate development, the National Company Law Appellate Tribunal (NCLAT) has disposed off an insolvency plea after the media major reached a settlement with IndusInd Bank following payment of all dues to the financial creditor.

Meanwhile, Indian equity benchmarks fell sharply today after touching their fresh all-time high levels in early trade. The 30-share BSE Sensex pack slumped 505 points or 0.77 per cent to settle at 65,280, while the broader NSE Nifty pack moved 166 points or 0.85 per cent to close at 19,332.

Also read: TVS Motor launches TVS RONIN in Indonesia, stock rises

Also read: Olectra Greentech shares extend gains, jump 16% today to hit fresh 52-week high; here's why

Watch: Samsung Galaxy M34 launched; check out the price, specs and performance of Realme Narzo 60, Moto G73, Redmi Note 12 rival

Watch: Adhura, Tarla, IB71, Blind, Lincoln Lawyer: Top movies and shows on OTT platforms Netflix, Amazon Prime Video, Zee5, Sony LIV to binge-watch this weekend