Zee Entertainment Enterprises Limited (ZEEL) shares opened its trading hour at Rs 205.45 and currently trade at Rs 204.30. The scrip is down around 2 percent in comparison to the previous closing price of Rs 208.15. In the last 5 trading sessions, the stock has dipped close to 4 percent.
One of the probable reasons for the downfall in stock prices is the block deal buzz around the company. According to news reports, Invesco Developing Markets Fund offloaded around 54.30 million shares (5.6 percent stake) via block trades amounting to around Rs 1,120 crores.
Zee Entertainment Enterprises Limited is a broadcasting television company providing media and entertainment services. The company generates revenue from advertising, content licensing, subscription services, theatrical productions, music licensing, movie distribution, etc.
Earning a majority of revenue from domestic operations, the company controls a suite of television channels broadcasting content in many different languages.
Digging into the financials, the company has been able to increase its revenues from Rs 2,028 crores in Q2 to Rs 2,111 cores in Q3. On a contrasting note, the company faced a downfall in its PAT figures from Rs 113 crores in Q2 and steeped down to Rs 25 crores in Q3.
Having a glance at the profitability ratios, the company has been able to deliver good returns with ROE moving from 8.16 percent during FY20-21 to 9.12 percent in FY21-22. Moreover, the ROCE percentages went up from 12.8 percent in FY20-21 to 13.68 percent in FY21-22.
The company was successful in consistently reducing its debt-to-equity ratio from 0.2 to 0.04 and eventually reported a nill figure for the same.
As per the quarter ending December 2022, promoters hold a constant 3.99 percent stake in the company. FIIs, on the other hand, have reduced their stake from 38.65 percent during Q2 to 37.33 percent in Q3.
Written by Amit Madnani
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