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Maintain extremely positive view on Zee Entertainment, says SP Tulsian

Updated : December 18, 2018 05:29 PM IST

In an interview to CNBC-TV18, market expert SP Tulsian shared his reading and outlook on specific stocks and sectors.

On Zee Entertainment Tulsian said there are some flaws in the report of  Bank of America Merrill Lynch (BofAML). "The report said that if the stake sale by the promoter happens, the money does not go to the company. This is a very immature analysis, we all know that if the promoters are selling the shares, it is obvious that the money will go to the promoter and not to the company," Tulsian said.

Shares of Zee Entertainment Enterprises Ltd (ZEEL) plunged 9.6 percent on Tuesday, hitting an intra-day low of Rs 454.40 after brokerages downgraded the stock.

Bank of America Merril Lynch (BofAML) has also cut the rating to "underperform", with a revised price target of Rs 375.

"In fact, I have been saying, when the decision to divest up to 50 percent was made by the promoter after Diwali and when the share was ruling at Rs 440, that we see a huge value," Tulsian said.

If you take a call on the company whether you call it an integrated media play, excellent media play or FMCG play, with a market capitalisation of just Rs 45,000 crore when the topline is closer to about Rs 9,000-10,000 crore and making a profit of about Rs 1,600-2,000 crore, no media company will give such a bouquet of channels on pan India basis, he added.

"We have an extremely positive view and this should be used as a buying opportunity," Tulsian said.

If you are a short-term investor, look for a target of Rs 490. Keep trading in that range - buy now at Rs 460-462 and exit at Rs 485-490 which I think should be seen in the next one month or so," he said.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
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