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Zee Entertainment Enterprises Ltd. Stock Analysis

Mid Cap
Evaluated by 5589 users | BSE: 505537 | NSE: ZEEL |
TV Broadcasting & Software Production
Zee Entertainment Enterprises was previously known as Zee Telefilms, which was founded in October 1992 as a content supplier for Zee TV -- India’s first Hindi satellite TV channel. It was promoted by Subhash Chandra, one of India's leading entrepreneurs who sought to establish Zee as an...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Zee Entertainment Enterprises Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 17.97%18.44%19.35%20.14%18.39%15.74%18.93%16.24%17.44%9.86%
Value Creation Index 0.120.090.290.340.220.050.260.080.16-0.34
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3,0093,0413,7004,4224,8845,8136,4346,6867,9348,130
Y-o-Y Gr. Rt.-1.1%21.7%19.5%10.5%19%10.7%3.9%18.7%2.5%
Adjusted EPS (Rs.) 6.46.237.398.979.798.7314.1914.1616.449.26
Y-o-Y Gr. Rt.--2.7%18.6%21.4%9.1%-10.8%62.5%-0.2%16.1%-43.7%
Book Value per Share (Rs.) 31.6835.774128.3436.7850.0469.6978.7792.9497.3
Adjusted Net Profit 6265987058619408381,3631,3601,579890
Net Op. Cash Flow (Rs. Cr.) 573408387383681731741554135250
Debt to Cash Flow from Ops 00.010.010.0102.352.972.758.242.73
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Zee Entertainment Enterprises Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.7%10.7%8.1%2.5%
Adjusted EPS 4.2%-1.1%-13.3%-43.7%
Book Value per Share 13.321.511.84.7
Share Price 5.6% -15.9% -28% -26.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 18.0718.319.219.9218.2716.223.7219.0819.169.74
Operating Profit Margin (%) 22.7824.0525.6427.2925.7725.8326.9430.8232.6720.23
Net Profit Margin (%) 20.4119.7119.0319.4319.2114.4321.1720.319.8810.95
Debt to Equity 000000.360.330.20.120.07
Working Capital Days 231251244254278263269316359422
Cash Conversion Cycle 88118110112117115106125150215
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 4.77%
Institutions 77.00%
Non-Institutions 18.08%
Pledged *52.5552.0859.2759.3766.1863.9896.0018.5216.3820.87
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Zee Entertainment Enterprises Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Zee Entertainment Enterprises Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Zee Entertainment Enterprises Ltd.'s performance infers:

Zee Entertainment Enterprises Ltd. earnings have declined by -1.1%, whereas share price has depreciated -15.9% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Zee Entertainment Enterprises Ltd. share prices over the last 10 years. Here is what we found out:

Zee Entertainment Enterprises Ltd. share price has depreciated 2.8% annually over the past ten years.

Zee Entertainment Enterprises was previously known as Zee Telefilms, which was founded in October 1992 as a content supplier for Zee TV -- India’s first Hindi satellite TV channel. It was promoted by Subhash Chandra, one of India's leading entrepreneurs who sought to establish Zee as an 'infotainment' company focused on the convergence of media and communications.   

Early in Zee's history, Subhash Chandra and the STAR group of companies entered into a joint venture for

Zee Entertainment Enterprises was previously known as Zee Telefilms, which was founded in October 1992 as a content supplier for Zee TV -- India’s first Hindi satellite TV channel. It was promoted by Subhash Chandra, one of India's leading entrepreneurs who sought to establish Zee as an 'infotainment' company focused on the convergence of media and communications.   

Early in Zee's history, Subhash Chandra and the STAR group of companies entered into a joint venture for television broadcasting in India. When News Corp acquired the satellite distribution business of STAR, News Corp de facto became a partner of Zee. To further develop the relationship, News Corp and Zee subsequently co-founded Siticable -- one of the leading cable MSOs. In March 2000, after a six-year joint venture, Zee bought News Corp's stake in both -- the broadcasting business and Siticable.   People at Zee have built a diverse portfolio of leading businesses over time and have taken a host of strong company-wide initiatives that drive growth and increases efficiency. Zee has a very strong consumer-connect and a set of common values that allows it to face any environment with confidence.

Business area of the company

Zee has an integrated range of businesses, encompassing the content-to-consumer value chain of media and entertainment business. Zee is a pioneer in India, in every aspect of content aggregation and distribution through satellite, cable and Internet.

Awards 

  • Zee Telefilms was among the ten Indian companies in the Forbes International 200 Small Best Companies selected from among 20,000 small companies worldwide for the year 2001.
  • Zee was awarded 'BSE Award for Maximisation of Shareholders Wealth - 2000'  
  • Zee was awarded 'Emerging Company of the Year' by The Economic Times in 1998
  • The EMMA Award for best digital/cable channel in the United Kingdom for Zee TV by the UK Brand Summit
  • Zee TV UK was awarded the MACE (Multicultural Awards for Competitiveness and Enterprise - Leadership in Best Practice) sponsored by the UK Trade and Investment.
  • Zee awarded was 'Ground Breaker' Award from Multichannel News International for its achievements in developing programme networks and related businesses.
  • In the fifth anniversary issue, Finance Asia, rated Zee Telefilms as the fourth best company in Asia and as one of the most successful Asian corporates in producing value for its shareholders.

Achievements

  • First listed media company in India
  • First to launch a Hindi general entertainment channel in India -- Zee TV 
  • First to launch a Hindi cinema channel in India -- Zee Cinema 
  • First to corporatise the Hindi film industry
  • First to launch a 24-hour Hindi news channel in India -- Zee News -- now operating as a separate company called Zee News (ZNL).
  • First to set up MSO operations at a national level -- Siticable -- now transferred its business to a separate company called Wire and Wireless ( India). 

Milestones

  • 2007: Zee Entertainment Enterprises (ZEEL) lists as an independent company.
  • 2006: Demerger process of Zee Telefilms (ZTL) initiated. The company also acquired controlling stake in TEN Sports.
  • 2003: Launched five new channels for the DTH market viz Action Cinema, Classic Cinema, MX, Premiere Cinema and Smile TV
  • 2003: Entered into a distribution tie-up with Rajshri Pictures for theatrical distribution of films in India
  • 2003: Launched 'Trendz' -- a premium fashion & style channel, targeted at the fashion conscious Indian consumer.
  • 2002: Acquired controlling stakes in ETC Networks Limited and Padmalaya Telefilms Limited
  • 2001: Introduced Zee TV and Zee News as pay television offerings 'Gadar - Ek Prem Katha' became highest grossing box office movie 
  • 2000: First cable company in India to launch Internet over Cable services, entered into content distribution joint ventures with MGM and Viacom and launched pay bouquet of channels on the Asian foot print
  • 1999: Acquired News Corp's 50% stake in joint ventures and also launched regional channels
  • 1998: Launched Zee TV in the US and Zee Cine Awards
  • 1997: Launched Zee Music (originally known as Music Asia)
  • 1996: Started first cable channel in India -- Siti Channel -- and launched Zee TV, Africa
  • 1995: Commenced Siticable operations, joint venture with News Corp. Launched Zee News and Zee Cinema. Zee TV goes global. Launched Zee TV, UK
  • 1992:  Launched Zee TV
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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