The Zee Telefilms share continued to reel under selling pressure on Tuesday. In the last five trading sessions it has lost more than 27 per cent. The scrip plunged past the 8 per cent lower circuit limit to touch a new 19-month low of Rs 162.25 (on a face value of Re 1), before settling at Rs 164.95.
Shubham Majumder, research analyst at Motilal Oswal Securities, said: "Though Zee may appear to be attractive on historic basis but it is still very expensive on current earnings. Hence, the stock prices are now aligning with its fundamentals."
Analysts also point out that Zee also received a big blow in the sports category as it failed to get the rights for the next two cricket World Cups. As a result, it divested its interests in Buddha Films (BFPL), a private limited company, and Zee Sports. ZTL is now getting back to basics. Its core competence all these days was its programming.
The company now plans to do programming with a target viewership along with an efficient use of resources. It also wants to make continuous innovations as against a reactive approach to competition. It has lined up a slew of new programmes starting March 2001.