ZEEL shares hit 52-week low; brokerages cut target prices after Q2 results
Motilal Oswal Financial Services Ltd (MOFSL) said Zee reported another quarter of subdued profitability, with EBITDA declining around 52 per cent year-on-year (YoY), missing its estimate by 17 per cent.
- Nov 2, 2026,
- Updated Nov 2, 2026 3:27 PM IST
Shares of Zee Entertainment Enterprises Ltd (ZEEL) slumped 7.90 per cent in Monday's trade to hit a 52-week low of Rs 61.22. The decline follows the company's September quarter (Q2 FY27) earnings announcement released after market hours on Friday.
At least four brokerages have lowered their target price after the quarterly performance.
Motilal Oswal Financial Services Ltd (MOFSL) said Zee reported another quarter of subdued profitability, with EBITDA declining around 52 per cent year-on-year (YoY), missing its estimate by 17 per cent.
However, subscription revenue grew 30 per cent YoY, supported by the FIFA World Cup 2026 broadcast. After several quarters of decline, advertising revenue remained flat YoY, which the brokerage attributed to a possible boost from the FIFA World Cup broadcast and an improving content slate.
MOFSL reiterated its 'Neutral' rating but lowered its target price to Rs 70 from Rs 80 earlier, based on around 12x its estimated December 2028 price-to-earnings (P/E) multiple.
JM Financial has cut its FY27-FY28 earnings per share (EPS) estimates by 3-27 per cent, largely due to lower margin assumptions. The brokerage continues to value ZEEL at 11 times its FY28 estimated EPS and maintained its 'REDUCE' rating.
It also trimmed its 12-month target price to Rs 67 from Rs 69 earlier.
Elara Securities highlighted that Zee owns one of the largest music companies, Zee Music. However, lower margins, ongoing Securities and Exchange Board of India (Sebi) investigations and the copyright dispute with JioStar remain overhangs for the company.
Following the Q2 results, the brokerage cut its EPS estimates by 36.6 per cent for FY27, 14.6 per cent for FY28 and 14.7 per cent for FY29.
Elara revised its rating to 'Reduce' from 'Sell' and lowered its target price to Rs 70 from Rs 80.
Meanwhile, Nuvama said Zee had received Rs 740 crore upfront from the promoter warrant issue. Factoring in elevated content and marketing expenditure, the brokerage cut its FY27-FY29 EPS estimates by around 19 per cent. It retained its valuation multiple at nine times June 2028 estimated EPS but lowered its target price to Rs 94 from Rs 117.
Nuvama maintained its 'BUY' rating on the stock.
Shares of Zee Entertainment Enterprises Ltd (ZEEL) slumped 7.90 per cent in Monday's trade to hit a 52-week low of Rs 61.22. The decline follows the company's September quarter (Q2 FY27) earnings announcement released after market hours on Friday.
At least four brokerages have lowered their target price after the quarterly performance.
Motilal Oswal Financial Services Ltd (MOFSL) said Zee reported another quarter of subdued profitability, with EBITDA declining around 52 per cent year-on-year (YoY), missing its estimate by 17 per cent.
However, subscription revenue grew 30 per cent YoY, supported by the FIFA World Cup 2026 broadcast. After several quarters of decline, advertising revenue remained flat YoY, which the brokerage attributed to a possible boost from the FIFA World Cup broadcast and an improving content slate.
MOFSL reiterated its 'Neutral' rating but lowered its target price to Rs 70 from Rs 80 earlier, based on around 12x its estimated December 2028 price-to-earnings (P/E) multiple.
JM Financial has cut its FY27-FY28 earnings per share (EPS) estimates by 3-27 per cent, largely due to lower margin assumptions. The brokerage continues to value ZEEL at 11 times its FY28 estimated EPS and maintained its 'REDUCE' rating.
It also trimmed its 12-month target price to Rs 67 from Rs 69 earlier.
Elara Securities highlighted that Zee owns one of the largest music companies, Zee Music. However, lower margins, ongoing Securities and Exchange Board of India (Sebi) investigations and the copyright dispute with JioStar remain overhangs for the company.
Following the Q2 results, the brokerage cut its EPS estimates by 36.6 per cent for FY27, 14.6 per cent for FY28 and 14.7 per cent for FY29.
Elara revised its rating to 'Reduce' from 'Sell' and lowered its target price to Rs 70 from Rs 80.
Meanwhile, Nuvama said Zee had received Rs 740 crore upfront from the promoter warrant issue. Factoring in elevated content and marketing expenditure, the brokerage cut its FY27-FY29 EPS estimates by around 19 per cent. It retained its valuation multiple at nine times June 2028 estimated EPS but lowered its target price to Rs 94 from Rs 117.
Nuvama maintained its 'BUY' rating on the stock.