InvestorQ : Why did media shares like Sun TV and Zee Entertainment fall so sharply on 13th November in the stock market?
swati Bakhda made post

Why did media shares like Sun TV and Zee Entertainment fall so sharply on 13th November in the stock market?

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Dia Deshpande answered.
3 years ago
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Sun TV plummeted sharply due to weak set of Q2 numbers announced by the company for the second quarter. Net profits for the quarter were up by 1% for the quarter at Rs.369 crore while total income for the quarter was up by 6.8% at Rs.900 crore. The weak profit growth was on the back of a 66% growth in the September quarter. This raised questions over the profitability of the company going ahead.

The stock of Zee fell in sympathy. But the stock also has a problem of pledged shares. The share sale will commence and that will include the 12% stake that VTB of Russia has in the company. Many mutual fund schemes had purchased bonds of Essel Group companies and that has also had an impact on the pressure on the stock. The company had time till September 30th to repay the bonds but in September Zee had asked for an additional 6 months which the funds were unwilling to give.

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