ZEEL stock jumps 3% despite posting Rs 53 cr loss in Q1, NCLT decision eyed; should you buy or sell Zee Ent-

ZEEL stock jumps 3% despite posting Rs 53 cr loss in Q1, NCLT decision eyed; should you buy or sell Zee Ent?

Zee Entertainment Ltd (ZEEL) share price jumped 3.36% to Rs 250.25 today despite the company posting a net loss of Rs 53.4 for the first quarter of this fiscal year. However, during the corresponding quarter in the previous financial year, ZEEL reported a profit of Rs 107 crore. Meanwhile, NCLT is set to pronounce its order on the merger scheme between Zee Entertainment Enterprises and Sony today. Most brokerages have maintained a ‘Buy’ rating on the stock. ZEEL shares have gained 23% in the last one month and have fallen nearly 1% in the past one year.Should you buy, sell or hold ZEEL stock?Motilal Oswal: Buy – Target Price: Rs 280

“We largely retain our revenue/EBITDA estimates for FY24/FY25 building in recovery in the ad market and continued investments. While the current valuations do not appear to justify the strong potential of the merged entity, aided by its strong competitive position in both linear and digital segments, NCLT’s judgment on the merger and its completion would remain a key monitorable. Reiterate BUY with a target price of Rs 280, based on 26x FY25E EPS.”

Prabhudas Lilladher: Buy – Target Price: Rs 276

“We expect sales CAGR of 8% over the next 2 years with an EBITDA margin of 12.4%/18.1% in FY24E/FY25E and retain BUY with a revised target price of Rs 276 as we increase our target multiple to 22x (earlier 19x). An unfavourable NCLT verdict (Z IN has the right to appeal in NCLAT in that case) and slower recovery in the ad environment can act as a key overhang in the near term.”

Nuvama: Buy – Target Price: Rs 285

“The next NCLT order is listed for 10th August. Rising Zee5 losses and increasing marketing/operating cost continues to weigh on margins. We roll forward our valuation to Q1FY26E with an unchanged target PE multiple of 17x, yields a target price of Rs 285 (earlier Rs 265). Retain ‘BUY’.”