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This is the only Nifty50 stock that gave double digit returns in 1 month

This is the only Nifty50 stock that gave double-digit returns in 1 month

This is the only Nifty50 stock that gave double-digit returns in 1 month
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By Mousumi Paul  Jul 24, 2019 2:14:06 PM IST (Updated)

Shares of the media company jumped nearly 11 percent in one month. However, in last one year, the stock price has eroded 28 percent

Zee Entertainment is the only Nifty50 stock that rose in double-digits this month. Zee Entertainment shares jumped over 11 percent in one month as promoters are in talks to sell a stake of the company. However, in last one year, the stock price has eroded 28 percent and about 21 percent this year.

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However, the company has been delivering a good set of earnings after it launched its OTT platform, Zee5. The June-quarter earnings saw a strong set of numbers. The company's consolidated net profit surged 62.6 percent to Rs 530.6 crore compared to Rs 325.88 crore in the corresponding quarter last year.
Revenue for the quarter grew 13.3 percent driven by a strong performance of domestic broadcast and digital business. Operating numbers also beat analysts’ expectations. EBITDA shot up 34 percent to Rs 727.6 crore.
While retaining ‘buy’ on the stock, CLSA said results exceeded its estimates led by a jump in domestic subscriptions. The stock trades at 17x FY20 PE, a 40 percent discount to its 10-year average, it added. The promoter stake sale deal would likely be a key catalyst for the stock, it feels.
Elara Capital maintained ‘accumulate’ on the stock with a target price of Rs 410, saying that it is currently inexpensive. The brokerage also believes that a favourable deal indicates the promoter group hold on business strategy post the announcement will trigger a slight rerating.
However, Morgan Stanley is bearish on the stock having an 'underweight' call with a target price at Rs 370 per share as advertising revenue growth was weak.
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