Zee Entertainment Enterprises Limited (ZEEL) is a media conglomerate that creates content for several mass mediums like television, internet, mobile content, print, and film.
The market capitalisation of Zee Entertainment as on 11 June 2018 is over Rs.54,000 crore.
Company’s Wealth and Recent Performance
- ZEEL completed 25 years of its operations in 2017 and received a brand makeover along with a new logo. With an all-India viewership of 18%, ZEEL became the top non-sports entertainment television network during the year.
- The consolidated revenue of the company for Q4 fiscal 2018 was Rs. 17,253 million. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs. 5,062 million while profit after tax (PAT) for the quarter was Rs. 2,310 million.
- The company recorded an advertising revenue of Rs.10,496 million which was up by 23.9%. Meanwhile, the domestic advertising revenue grew by 21.5% and the international advertising revenue for the quarter was Rs.662 million.
- For FY18, ZEEL reported consolidated revenue of Rs.66,857 million while the (EBITDA) was Rs. 20,761 million. PAT for the year was Rs.14,791 million. The company’s advertising revenue for FY18 recorded a growth of 14.5% at Rs.42,048 million while the domestic advertising revenue grew by 15.9% to Rs.38,488 million.
- In 2017, the ZEEL also launched ZEE5, a comprehensive digital platform with 100,000+ hours of content across 11 languages.
Zee Entertainment Stock Trends in 2018
- The stock price of Zee Entertainment on January 1, 2018 the was around Rs.581 on NSE. Throughout the month, the price increased gradually and by the end of the month, it had reached Rs.593.
- At the beginning of February, the price of Zee Entertainment stock was around Rs.570 and it remained flat throughout the month. In March, the stock price did not change much and closed at Rs.575 by the end of the month. The company called off the acquisition of 9x Media.
- Zee Entertainment stock price in April reached Rs.585. The chief financial officer (CFO) of the company Bharat Kedia announced his resignation.
- In the beginning of May, the stock price of Zee Entertainment crossed the Rs.600 mark. However, it kept falling and the closing price of the stock was Rs.556 by the end of the month. The company’s strong performance in the quarter was attributed to good performance in the regional markets like Marathi and Kannada.
Stock Trends in 2016 and 2017
- Zee Entertainment stock commenced the year 2016 at Rs.437. The price of the stock kept falling and by the end of the month it stood at Rs.404. By the end of February, the share price was Rs.372. In March, the stock price did not change much and crossed the Rs.400 mark. The closing price at the end of March 2016 was Rs.386.
- In April, Zee entered Philippines with a Bollywood movie channel. The price of the stock changed marginally over the course of the month without undergoing any major fluctuations. The closing price at the end of April 2016 was Rs.414. In May, the stock price improved and crossed the Rs.450 mark. The closing price of Zee Entertainment stock by the end of June was Rs.456.
- In July, the stock price increased gradually and closed at Rs.497 as the company announced quarter one financial results. After crossing the Rs.500 mark in August, the price of the stock closed at Rs.539 by the end of the month. In September, Sony Pictures announced the acquisition of TEN Sports from Zee. October saw the stock price reach Rs.580 but it fell gradually and closed at Rs.518 by the end of the month.
- Zee announced the acquisition of Reliance Group TV channel. The price of the stock kept falling throughout the month and closed at Rs.457. In December, the stock price was pretty flat and did not see much change. The closing price of the stock on December 2016 was Rs.453.
- The opening price of the stock in January 2017 was Rs.453 and it crossed the Rs.500 mark by the end of the month. The stock price increased marginally in February as Sony completed the first phase of the TEN Sports acquisition from Zee. In March, the company acquired 80% in tech startup Margo. The closing price of the stock at the end of the March 2017 was Rs.535. In April, the stock price was pretty flat and did not witness any major fluctuation.
- The month of May continued to be flat as the stock price closed at Rs.514. In June, ZEEL acquired 49% stake in India webportal for Rs.197 crore. July was a busy month for Zee as the company appointed Atul Das as president and announced the outcome of the Annual General Meeting (AGM).
- In August, closing price of the stock was Rs.514 while in September, the stock price crossed the Rs.550 mark. The month of October saw some fluctuations in the stock price as the month ended at Rs.541.
- Zee Entertainment stock price in November 2017 crossed the Rs.585 mark and the closing price of the stock in December was Rs.581.
Should you invest in Zee Entertainment?
- Zee is a household brand in India as well as overseas. The company has been a pioneer in the media and entertainment business since past 25 years. The company’s stock prices have been quite stable and have not seen drastic fluctuation in the past couple of years.
- From a long-term perspective, buying Zee Entertainment shares is a good idea. However, it is advised that you conduct your own research before investing in stocks.
ZEEL is owned by the Essel Group. The media company produces TV shows, Hindi as well as regional films, game shows, and much more. It also produces and exports entertainment software for transmission on its ZEE TV channel. The company has over 37 domestic channels, 39 international channels, over 4200 movie titles, and more. Some of the popular channels include Zee TV, Zindagi, Zee Cinema, Zee Studio, Zee Action, Zee Classic, Zee Cafe, and so on. It has operations in 173 countries. In 2017, ZEE became the only media brand to feature in Interbrand's Best Indian Brands 2017. The company completed 25 years as a mass media company. It forayed into global production by launching Zee Studios international in Canada.
History of the Company
ZEEL was founded in 1982 in the name of Empire Holdings Ltd. The name of the company was changed to Zee Telefilms Limited in 1992 as it forayed into the entertainment software business. Following the demerger of the news and cable business, the company changed its name to ZEEL in 2007. In 2016, ZEE launched OZEE an AVOD (Ad-based video on demand) service while in 2015 it launched ZEE theatre and became the first media company to enter theatre production. Zee Music Company was founded in 2014 following which it was included in the Nifty. In 2012, the company launched Ditto TV that was claimed to be India's first and only OTT (Over-The-Top TV) Distribution Platform. The company entered into a 50:50 joint venture with Star Den Media Services Pvt. Ltd. to form MediaPro Enterprise India Pvt. Ltd in 2011.
Management of the Company
Dr. Subhash Chandra - Non Executive Chairman
He is Chairman of the Essel Group of Companies and was responsible for launching the iconic television channel Zee TV in 1992. He served as Managing Director at Zee Entertainment Enterprises Ltd. from October 2002 to December 2005. Mr. Chandra leads the Board of Directors and helps in creating strategies at Zee along with business heads and managing directors of various departments.
Mr. Punit Goenka - Managing Director and CEO
Punit is the Managing Director since January 1, 2010 and also its Chief Executive Officer since July 2008. With an experience of over 11 years, Goenka has worked in various media and entertainment sectors. He was honoured with Business Today ‘Best CEO Award’ in the Media and Entertainment category for 2016. He was involved in Dish TV (India) Limited and served as its Vice President of Operations for three years.
Listings in NSE, BSE, and Indices
The stock of Zee Entertainment are available for trading on the two major stock exchanges of India - The National Stock Exchange Limited (NSE) and The Stock Exchange, Mumbai.
The respective codes for the same are as follows:
- NSE Code - ZEELEQ
- BSE Code - 505537
- ISIN - INE256A01028
- Sector - Services
The company forms a part of important indices like:
- Nifty 50
- Nifty 100
- Nifty 200
- Nifty 500
- S&P BSE 100
- S&P BSE 500
18th floor A-Wing, Marathon Futurex,
N M Joshi Marg, Lower Parel
Mumbai -400 018, India
Tel: +91-22-7106 1234
Fax: +91-22-2300 2107
Stocks vs. Mutual Funds: here's what we recommend
Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.
The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.