Shares of Zee Telefilms, the country's largest private television network, fell over 8 per cent on Monday to its 17 month low of Rs 216.60 on the Bombay Stock Exchange (BSE) after a foreign brokerage issued a sell recommendation on the stock. The stock, however, recovered to close higher at Rs 229.55.
Over 70 lakh Zee shares changed hands. While on the National Stock Exchange, the stock had dipped to a low of Rs 211.10, but closed higher at Rs 229.55. The scrip had hit its all-time high of Rs 1,630 on February 25, 2000.
The Zee counter had remained relatively resilient last week when most media shares tumbled on the bourses following the arrest of leading film financier Bharat Shah. Analysts also add that Zee Telefilms continues to be highly priced as it is trading at a price multiple of 86 based on its trailing 12 months earning per share of Rs 2.80.
Hence, the counter is now witnessing selling on the high valuation concerns that have gripped IT, media and telecom stocks in the last one month or so.