Buy Zee Entertainment stock with a price target of Rs 309
According to Prabhudas Lilladher report, though the quarter was backed by festivities and overall inflationary environment has softened a bit for consumer companies, full benefit in terms of recovery in ad-spends is likely to be seen from next quarter onwards.
Accordingly, we expect ZEE Entertainment’s domestic ad-revenue to be up 18.0% QoQ, but register a decline of 6.0% on YoY basis. On the other hand, subscription business is expected to report flattish growth amid pricing embargo, given pending implementation of NTO 2.0. “Nonetheless, revised RIO has already been filed by ZEE Entertainment’s post amendments to the revised tariff order and new rates are likely to be applicable from Feb-2023. Overall, we expect revenue growth of 1.7% YoY with 15.1% EBITDA margin. Consequent to slowdown in the overall ad-environment, we have cut our EPS estimates for ZEE Entertainment’s by 16% in FY23E. Nonetheless, we maintain our ‘BUY’ rating with a target price of Rs 309 (22x Sept-24E EPS) after incorporating merged entity financials,” the brokerage has said.
Buy Inox Leisure with a price target of Rs 602
According to Prabhudas Lilladher, due to myriad of sufficiently good content and with 4 films
crossing Rs1 bn mark we expect footfalls to be at 15.3mn, 9% lower than pre-COVID base. However, we expect ATP and SPH to be 13%/31% higher than pre-COVID base in 3QFY23. “We expect pre IND-AS EBITDA margin of 14.6%,” Prabudas Lilladher has said. The brokerage has a “buy” target on the stock with a target price of Rs 602.
Multiplex stocks
According to Prabhudas Lilladher, BOC’s for Bollywood and Hollywood genre stood at Rs11.1bn in 3QFY23 as against Rs 6.9 bn in 3QFY22. Though only 4 movies crossed Rs1 bn mark in 3QFY23 (PS-1, Kantara, Drishyam-2 and Avatar-The Way of Water), there were a lot of fillers (neither a hit nor an outright dud) like Vikram Vedha (released on 30th Sept-22 and hence spill over happened in 3QFY23), Black Adam, Black Panther, Godfather and Bhediya supporting overall collections for the quarter.
Disclaimer
The stocks have been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage Houses are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.