InvestorQ : Should I look to buy Zee Entertainment at the current market price considering that June quarter results were extremely good?
swati Bakhda made post

Should I look to buy Zee Entertainment at the current market price considering that June quarter results were extremely good?

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Dia Deshpande answered.
3 years ago
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You are right that the June quarter results of Zee Entertainment have been extremely robust with a 63% growth in net profits to Rs.530 core. Even the total revenues were up by 13.3% at Rs.2008 crore. Zee has been a big beneficiary of the new tariff plan which resulted in a sharp rise in its domestic subscription revenues in the quarter. Even the EBITDA margins were healthy at 33% for the June quarter.

However, you may still have to be cautious about buying into these earnings enthusiasm since the company has a major debt repayable in September and any failure to do so would seriously impact the solvency of the company. There is also the worry of too much shares caught up in promoter pledges and that is not good for prices either. You should stay away from the buying this stock till there is clarity on their loan repayments in September when the cooling period gets over. Ideally stay away.

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