Zee Entertainment Enterprises (ZEE) rose nearly 6 percent on Monday after veteran investor and the company's Independent Director Manish Chokhani bought shares of the company. Chokani bought around 1 lakh shares for Rs 2 crore at a share price of Rs 200 per share.
Chokhani now owns 2 lakh shares in the company, the company disclosed in a recent filing.
The stock rose as much as 5.8 percent to its intra-day high of Rs 203.35 per share.
For the June quarter, the company's quarterly net profit came in at Rs 29 crore in June 2020, down over 94 percent from Rs 529 crore in June 2019.
The company's net sales also fell 38 percent to Rs 1,112 crore in Q1 from Rs 1,789 crore in the year-ago period. Zee’s total income in the period also tumbled 36.6 percent to Rs 1,338.41 crore, from Rs 2,112.03 crore a year ago. Its advertisement revenues dropped 64.5 percent to Rs 421.06 crore, from Rs 1,186.71 crore a year ago.
Despite the poor performance, global brokerage house CLSA retained a BUY rating and a target price of Rs 255 per share.
"Zee advertising revenue was in line with expectations, down 66 percent YoY due to COVID-19 lockdowns, but Zee network viewership sharply improved to exceed pre-COVID-19 levels, led by resumed original content. Zee has improved disclosures and should emerge stronger post-COVID-19. At current valuations, the stock offers deep value, in our view," it said in a report.
First Published: IST