ZEE shares gain 2% despite posting Q4 loss; should you buy, sell or hold Zee Entertainment Enterprises stock-

ZEE shares gain 2% despite posting Q4 loss; should you buy, sell or hold Zee Entertainment Enterprises stock?

Zee Entertainment Enterprises’ share price added 2.1% in early trade on Friday even as the entertainment player swung into consolidated net loss of Rs 196 crore in the fiscal fourth quarter, compared to a net profit of Rs 182 crore for the same period previous year. The stock price touched a high of Rs 182.75, after opening 1.8% lower. Analysts were positive on the stock outlook, with several recommending a ‘buy’ on ZEE stock.Should you buy, sell or hold Zee Entertainment Enterprises stock?Emkay: Buy

Target Price: Rs 245

Prabhudas Lilladher: Buy

Target Price: Rs 240

“We cut our EPS estimates for Zee Entertainment Enterprises by ~21% odd over FY24E/FY25E as 1) widening losses in ZEE5 (EBITDA loss has increased from Rs7,534mn in FY22 to Rs 11,050 million in FY23) 2) entry into sports and 3) sluggish recovery in ad-environment is likely to dent profitability in near term. We expect sales CAGR of 9% over next 2 years with EBITDA margin of 15.4%/18.5% in FY24E/FY25E and retain BUY with a revised TP of Rs 240 (earlier Rs 277). Delay in merger and slower recovery in ad-environment can act as a key overhang in near term.”