Edelweiss Securities on Tuesday said valuations of Zee Entertainment are not expensive but the company's over the top (OTP) platform is a risk.
In the case of Jio, Airtel and all other telecom players, content will be the king and Zee will be one of the preferred player there,” said Abneesh Roy, senior vice president, Edelweiss Securities.
Zee is ahead of other players as they already have ZEE5 and the company is working on content to drive the OTT app, Roy said.
Shares of Zee Entertainment Enterprises plunged 9.6 percent on Tuesday, hitting an intra-day low of Rs 454.40. The stock opened at Rs 498, slipping from Monday's close of Rs 501.85.
Shares declined reportedly after brokerage firms revised ratings and price target on growth concerns and enhanced competition.