ZEEL shares dive 5% today; here's what brokerages have to say

Shares of Zee Entertainment Enterprises Ltd (ZEEL) witnessed a sharp cut in Thursday's trade, sliding 5.27 per cent to hit a low of Rs 126.70. Last checked, the stock was down 4.30 per cent at Rs 128. At this price, it has climbed 4.02 per cent on a year-to-date (YTD) basis.

The company informed bourses that it is slated to hold an extraordinary general meeting (EGM) on July 10, 2025. "The Company shall provide the facility of remote e-voting and e-voting during the Meeting to the equity shareholders of the Company in respect of the resolution to be passed at the Meeting. The remote e-voting will commence on Sunday, July 6, 2025, at 9.00 a.m. (IST) and will end on Wednesday, July 9, 2025, at 5:00 p.m. (IST). All persons whose names appear in the Register of Members or in the Register of Beneficial Owners maintained by the depositories as on the cut-off date i.e., Thursday, July 3, 2025, shall be entitled to avail the facility of remote e-voting or e-voting during the EGM," ZEEL stated.

A few brokerages stayed mixed on ZEEL. One firm maintained a 'BUY' rating with a target price of Rs 178 while another assigned a 'Neutral' rating.

Nuvama Institutional Equities expects ZEEL to improve its financial performance with a target EBITDA margin of 18-20 per cent for FY26. This goal marks a significant increase from the 14.4 per cent margin in FY25, driven primarily by cost-control measures and a substantial reduction in EBITDA losses from Zee5. The company plans to reduce these losses by up to 60 per cent, following a 50 per cent year-on-year (YoY) reduction in FY25.

In terms of financial positioning, ZEEL reported a significant increase in its cash and cash equivalents as of March 31, 2025. The figures were up by 102 per cent, reaching Rs 2,410 crore, which is around 19 per cent of its market capitalisation (m-cap).

The domestic brokerage has retained a 'BUY' rating on ZEEL, setting a target price of Rs 178. Nuvama underscored that a key development for ZEEL is its new strategic equity partnership with Bullet, a contemporary content and technology start-up.

On the other hand, broking firm MOFSL has suggested a 'Neutral' rating on ZEEL shares after the company's Board approved the issuance of up to 16.95 crore fully convertible warrants to promoter group entities on a preferential basis at Rs 132 per warrant.