Buy Zee Entertainment With Stoploss Of Rs 248

Zee EntertainmentStock market analysts are of the view that investors can buy Zee Entertainment Enterprises Ltd stock to achieve an intraday target between Rs 253-258.

According to them, investors can purchase the stock above Rs 251 with a strict stop loss of Rs 248.

Shares of the company, on Monday (Nov 09), closed at Rs 249.10 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 8.77 and 28.29 respectively. The share price has seen a 52-week high of Rs 261.40 and a low of Rs 88.10 on BSE.

For the quarter ended September 30, Zee Entertainment Enterprises Limited (ZEEL) has recorded a growth of 12% in its net profit, which stood at Rs 110.9 crore as against the same period of the last year.

But, the consolidated income of the possessor of Zee TV and other TV channels declined 5% to Rs 540.5 crore as against the corresponding period of 2008.

During the period under review, the company recorded a 13% fall in its advertising income to Rs 247 crore.

On Oct 29, the company's board sanctioned the proposed share swap ratio for acquiring Zee News's regional entertainment business.

The acquirement would be financed via issue of fresh shares by Zee Entertainment Enterprises Ltd to the stockholders of Zee News Ltd, and the share swap ratio has been fixed at 4 equity shares of Rs 1/- each of Zee Entertainment Enterprises Ltd for nineteen equity shares of rupees one each held in Zee News, as a consideration for the amalgamation of R-GEC business enterprise.

Moreover, Punit Goenka, wholetime director and CEO, ZEEL, has been named as the new MD for a period of five years effective from Jan 01 next year.

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