Zee Entertainment Enterprises Ltd. (ZEEL) is India’s largest vertically integrated media & entertainment company. The company started as content supplier for Zee TV now has portfolio that includes India’s leading entertainment channels. The company`s portfolio consists of brands like Zee TV, Zee Cinema, Zee Music, Zee Cafe, Zee Smile, Zee Action, Zee Premiere, ETC, ETC Punjabi, Zee Studio, Zee Classic, Zee Trends, & Zee Sports.
They have also entered the educational arena with brands like ZICA, Kid zee, ZIMA &ZED. Zee also has their in-house production company under the name Zee Motion Pictures. Globally, they have launched ZEE Radio in London, ZEE AFLAM — A Hindi movie channel in Middle East & North Africa, ZEE MIB — a Hindi entertainment channel in Malaysia, Indonesia & Brunei, among others. India accounts for 87% of net sales.
Zee Entertainment Enterprises Limited is a media group organized around 4 areas of activity:
- Advertising services (63.5% of net sales)
- Subscription services (29.1%)
- TV programs broadcasting services (4.1%)
- Other (3.3%)
The company believes that in the coming festive season, brands will come back with full force and by the end of this fiscal the ad growth could return to its normal trajectory. The company expects the subscription revenue from its OTT (over-the-top) platform ZEE 5 to scale up faster as it is investing in original content.
However, ZEE 5 subscription revenue should scale up faster as it continues its investments in original content and further expands the partnership network which has reported a good growth, would continue to release higher number of original shows and movies than any other OTT platform in the country the company said.
Technical View of Zeel
On the technical front the stock has made a double bottom pattern on the weekly chart. After forming a bottom, stock took an upside reversal from lower levels and correct its rally till 78.6% on the chart.
Currently the stock is trading in a bullish trend with a supportive Moving Average of 9 & 26 which clearly gives a positive crossover on the chart.
Indicators like RSI and Stochastic also indicating a positive movement will continue in this stock with a supportive volume spurt. As we see on the above chart stock has given its breakout above its double bottom formation and we have seen aggressive buying in this stock from few days.
Traders can buy ZEEL stock around CMP (219) levels. We are expecting an upside rally in the stock for the targets of 380 — 400 in the coming 8—12 months.
Support and stop loss below 138 levels on a closing basis.