Zee Entertainment share price down 5%: Independent Advisory committee role expansion fails to lift investor confidence

livemint.com:

₹165 levels. Zee Entertainment Enterprises latest efforts to tackle the market turmoil through formation of independent advisory committee and thereafter changing the nomenclature to “An independent investigation committee" seem to have not helped lift investor confidence.

In a filing to exchanges on Tuesday post market hours, Zee Entertainment had said that it further has expanded and strengthened the role of the ‘Independent Advisory Committee’ by including ‘Investigation Assessment’ as a primary responsibility of the Committee. Zee also has amended the nomenclature of the Committee from “An Independent Advisory Committee" to ‘An Independent Investigation Committee".

Also Read- Maruti Suzuki shares: JM Financial raises target price as trend seems shifting to hybrid vehicles amid EV deceleration The investor confidence continues to remains weak ever since the Zee Sony $100 Billion merger plan was called off . Various news reports regarding financial irregularities also have been erupting and impacting investor confidence.

Jinesh Gandhi, Research Analyst at Prabhudas Lilladher had cut its FY25 earnings per share estimates by 6% and said that operating margin may remain under pressure in near term as recalibration measures are taken to reset the cost base by re-visiting content, technology, marketing and employee spends will take some time to unfold post-merger fall out. Post Q2 Results Gandhi had revised his target price for Zee Entertainment to ₹167 and said that likely improvement in ad-environment and accrual of benefits from NTO 3.0 is likely to result in sales CAGR of 10% over next 2 years with EBITDA margin of 11.3%/16.8% in FY24E/FY25E.