Zee Entertainment shares rebound over 55%

Analysts at Nomura see another 20-25 per cent potential upside on the counter

e4m by exchange4media Staff
Updated: Feb 25, 2019 6:40 PM

Zee Entertainment shares have rebounded over 55 per cent from their 52-week low of Rs 288 that was recorded 30 days ago, according to media reports.

It is believed the company may bring in a strategic partner by September. 

Analysts see another 20-25 per cent potential upside on the counter. “We believe chances of Zee’s stake getting sold are high, and this would allay concerns on the pledging front,” said analysts at Nomura.

Zee has consistently delivered strong profitable growth over last several years, which would mean that any strategic partnership could benefit from long-term profitable growth in India. 

Zee shares came under heavy pressure last month after reports linking the Essel Group to a firm under investigators’ radar for large cash transactions post the 2016 demonetisation. While the company denied any linkage with the firm under investigation for the large cash deposits, the news triggered a selling spree, sending Zee stocks tumbling some 27 per cent last month. The strong selling made a few Zee lenders sell pledged shares in the open market. Zee later secured time till September to strike a deal.

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