ZEEL shares surge 12%, continue upward trend

Shares of Zee Entertainment Enterprises Ltd (ZEEL) recorded a sharp rise in Monday's trade, extending their strong upmove for the second straight session. The stock zoomed 11.51 per cent to hit a day high of Rs 148.25. It was last seen up 11.92 per cent at Rs 148.80. At this price, the scrip has climbed 16.25 per cent in a month.

The company's Board has recently approved the issuance of approximately 17 crore fully convertible warrants for a total cash consideration of around Rs 2,237 crore.

ZEEL's promoters had purchased nearly 27 lakh shares from the open market, worth around Rs 27 crore earlier in March this year. This increased their stake from 3.99 per cent to 4.28 per cent.

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.