Check Before You Invest : Zee Entertainment Enterprises Ltd

Snapshot

Q.1 Which industry/sub-sector does Zee Entertainment Enterprises Ltd belong to?

Zee Entertainment Enterprises Ltd belongs to the Media sector, operating specifically within the TV Broadcasting & Software Production segment.

Q.2 Is Zee Entertainment Enterprises Ltd a good quality company?

Zee Entertainment Enterprises Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Zee Entertainment Enterprises Ltd undervalued or overvalued?

Zee Entertainment Enterprises Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Zee Entertainment Enterprises Ltd a good buy now?

Zee Entertainment Enterprises Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Zee Entertainment Enterprises Ltd?

Zee Entertainment Enterprises Ltd revenue growth is -4% for FY-2025, which is below its 5-year CAGR of 0.4%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Zee Entertainment Enterprises Ltd?

Zee Entertainment Enterprises Ltd Return on capital employed is 8.5% for FY-2025, which is in line with its 5-year historical median of 8.5%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Zee Entertainment Enterprises Ltd?

Zee Entertainment Enterprises Ltd Return on Asset is 5.22%, which is in line with its 5-year historical median of 5.22%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Zee Entertainment Enterprises Ltd?

Zee Entertainment Enterprises Ltd Return on equity is 6.14% for FY-2025, which is in line with its 5-year historical median of 6.14%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Zee Entertainment Enterprises Ltd?

Zee Entertainment Enterprises Ltd Cash conversion cycle is 308 days, above its 5-year historical median of 291 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.63	0.63
ROE	6.14	6.14
ROCE	8.5	8.5
Cash Conversion Cycle	308 days	291 days

Q.6 Gross Profit margin of Zee Entertainment Enterprises Ltd?

Zee Entertainment Enterprises Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.7% for FY-2025, which is in line with its 5-year median of 15.7%, indicating stable margins.

Q.7 Operating Profit Margin of Zee Entertainment Enterprises Ltd?

Zee Entertainment Enterprises Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.69% for FY-2025, which is in line with its 5-year median of 14.69% indicating stable margins.

Q.8 Net Profit Margin of Zee Entertainment Enterprises Ltd?

Zee Entertainment Enterprises Ltd Net Profit Margin is 8.29% for FY-2025, is in line with with its 5-year median of 8.29%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	15.7	15.7
Operating Profit Margin	14.69	14.69
Net Profit Margin	8.29	8.29

Q.9 Debt to Equity ratio of Zee Entertainment Enterprises Ltd?

Zee Entertainment Enterprises Ltd Debt-to-Equity ratio is 0.01, which is lower with the industry average of 0.28, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Zee Entertainment Enterprises Ltd?

Zee Entertainment Enterprises Ltd Debt to cash flow from operations is 0.13, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Zee Entertainment Enterprises Ltd?

Promoters hold 3.99% of the Zee Entertainment Enterprises Ltd, with 5.38% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Zee Entertainment Enterprises Ltd vs industry peers?

Zee Entertainment Enterprises Ltd revenue CAGR is 0.40%, compared to the industry median CAGR of -2.92%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-4	-2.9
Gross Profit Growth	34.6	-4
Operating Profit Growth	31.3	-14.4
Net Profit Growth	245.2	-4.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.63	0.52
ROE	6.14	2.12
ROCE	8.5	2.02
Cash Conversion Cycle (days)	307.6	-9

Valuation & price assessment

Q.1 Stock return of Zee Entertainment Enterprises Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -14% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-14%	-13.1%	-22.7%	-15.3%

Q.3 Valuation ratios of Zee Entertainment Enterprises Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	15.29	25.53	20.32
Price to Book	0.73	1.23	1.44
Price to Sales	1.04	1.62	2.25
EV to EBITDA	7.31	10.48	9.67

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