The shares of this leading entertainment stock surged over 6 percent on Tuesday after the company announced that it had entered into a partnership with content start-up Bullet to launch India’s first Micro-Drama app.
With a market capitalization of Rs 12,621 crores, the shares of Zee Entertainment Enterprises Ltd are currently trading at Rs 131 per share, down by 22.34 percent from its 52-week high of Rs 168.70 per share. Over the past five years, the stock has delivered a negative return of 21.81 percent.
ZEE Entertainment has entered into a strategic association with an upcoming start-up, Bullet, co-founded by Azim Lalani and Saurabh Kushwah. Bullet is India’s first micro-drama application, which will provide short episodes in a mobile-defined vertical format aimed at today’s young, mobile-first audiences. As part of the partnership, ZEE will either invest in or acquire a stake in Bullet, which will be integrated into the ZEE5 platform.
Bullet will deliver smart and engaging fast-form stories in multiple vernacular languages in India by leveraging a large share of ZEE’s content library at launch. Bullet will also differentiate itself in the short-form space due to its focus on creator-led content, gamified experiences, and AI-enabled features for content personalization, pricing, and performance prediction.
Financial Highlights
The company has reported a revenue of Rs 8,294 crore in FY25, down by 4 percent from its FY24 revenue of Rs 8,637 crore. However, it reported a net profit growth of 382 percent to Rs 680 crore in FY25 from Rs 141 crore in FY24.
The stock has delivered an ROE and ROCE of 6.79 percent and 9.21 percent respectively and is currently trading at a P/E of 16.71x as compared to its industry average of 20x.
Zee Entertainment Enterprises Limited owns TV channels and digital media platforms in India and overseas. It provides Hindi and regional entertainment and movie channels, as well as international and niche content. Zee also makes films (Zee Studios), has a music label (Zee Music Co.), and operates the OTT platform Zee5. It also sells media content and is a space-selling agent..
Written by Satyajeet Mukherjee
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