Motilal Oswal
  • SENSEX
    NIFTY 50
Motilal Oswal
VIDEOS
Market

Zee Entertainment interesting from medium to long-term view, says Edelweiss Securities

Updated : January 28, 2019 12:06 PM IST

Abneesh Roy of Edelweiss Securities is positive on Zee Entertainment as he believes the company has addressed all the issues that led to fall in the stock on Friday.

“In Friday’s crash, only 0.6 percent of the promoters’ stake got sold so still 41 percent stake management continues to have. If the infrastructure deals happen, I think most of the pledging will go away. So they are going to file this lawsuit because they have said that the promoters are not being investigated and Zee and Essel don’t have any linkage to that. So most of the key concerns why the Zee stock fell on the bankruptcy kind of issue, I think as of now that is getting addressed,” said Roy.

“They have signed this formal deal with the bankers which will give them more time to do the deal. There was a section of the street which had doubts whether deal will happen or not. now, with these developments, I think deal definitely will happen. Timelines – the good part is it is beyond two-three months, so it is not necessarily in the next two-three months, the deal has to happen but my sense is they would like to do it earlier. Good part is 96-97 percent of the lenders have agreed and the balance also, the management is working,” he added.

“The stock from here clearly is looking to be trailing what happens on the deal but fundamentally Zee business doesn’t get impacted by this and 15-16 times, post the Friday fall, I think the stock is definitely interesting from a medium-term to long-term perspective,” said Roy, adding “We have a buy on Zee Entertainment".
primo org
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV