CLSA maintained its “outperform” rating on the stock with a price target of ₹125 per share, indicating an upside of 8% from its previous close.
The brokerage note said that Zee Entertainment’s OTT streaming service Z5 has witnessed weekly active users double to a new high since the start of the FIFA World Cup.
Z5 has also been the most downloaded OTT platform, despite Zee having FIFIA on premium subscription, CLSA said. With Zee’s multi-platform approach, the viewership momentum will likely build further, especially as the World Cup unfolds, it said.
Zee has an eight-year content rights deal with FIFA through 2034 including 39 major events, which include the 2026, 2030 Men’s World Cups and the 2027 Women’s World Cup.
Zee is also claiming to have a 48-hour in-linear television viewership market share, adding the upside risk to CLSA’s growth forecasts for financial year 2027-2029.
At 1x sales and 11 times estimated price-to-earnings for financial year 2028, CLSA finds Zee Entertainment’s valuations to be cheap.
Earlier this month, Zee Ent’s board of directors approved fund raise of up to ₹2,300 crore in one or more phases / tranches, to fund its strategic and business initiatives.
The company reported a net loss of ₹102 crore in the March quarter compared to a net profit of ₹188.4 crore in the previous year. Its revenue declined 7.3% to ₹2,024.8 crore from ₹2,184.1 crore in the fourth quarter of the previous year.
The company also reported an EBITDA loss of ₹254.8 crore compared to an EBITDA of ₹297.7 crore in the previous year.
Its board also recommended a final dividend of ₹2 per equity share for the financial year 2026.
Of the 16 analysts who have coverage on Zee Entertainment, seven have a “buy” rating, three have a “hold” rating and six have a “sell” rating.
Shares of Zee Entertainment are currently trading little changed at ₹115.87. The stock is up 40% so far over the last one month.
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