Shares of ZEE Entertainment climbed 6 per cent in Tuesday’s trade amid block deals. Data available with NSE showed a total of 5,29,35,068 shares changed hands on the counter worth Rs 1,395.89 crore.
The block deals came in the backdrop of reports that suggested OFI Global China Fund and other funds managed by Invesco’s Developing Markets Equity investment team were looking to sell shares on the stock exchange today.
On Tuesday, the scrip climbed 6.2 per cent to hit a high of Rs 280.05 on BSE.
As per BSE’s website, Invesco Oppenheimer Developing Markets Fund, on April 7, sold 7,43,18,476 ZEE shares at an average price of Rs 281.46. Morgan Stanley Asia Singapore and Segantii India Mauritius were among the buyers.
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In its September quarter preview, Emkay Global said a slow improvement in market-share gains, along with converting only few free-to-air (FTA) channels to pay, is likely to accentuate this pain, resulting in another weak quarter for ZEE Entertainment.
“Heightened investments in content to recover the market share would lead to disappointment on margin print. For another quarter, Sun’s performance is likely to be better than Zee’s, given that the former has managed to maintain its market share in core markets. Zee and Sun Pictures produced one big budget movie each, in the quarter,” it noted.
The brokerage expects ZEE Entertainment to report a 41 per cent year-on-year (YoY) drop in profit after tax at Rs 159.41 crore compared with Rs 270.20 crore in the same quarter last year. Sales are seen falling 3.8 per cent YoY to Rs 1,904.50 crore compared with Rs 1,978.80 crore in the year-ago quarter. Margin is seen contracting 749 basis points to 13.3 per cent from 20.8 per cent YoY.
