Zee Entertainment Enterprises Limited

Communication Services — Broadcasting · NSE

₹71.95−₹0.84 (−1.15%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Zee Entertainment Enterprises Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Zee Entertainment Enterprises Limited, together with its subsidiaries, engages in broadcasting satellite television channels and digital media in India and internationally.

IndustryBroadcasting

SectorCommunication Services

Employees2,159

Annual revenue₹8,088 Cr

How does it make money?

Turns over ₹8,088 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 2,159 employees supports ₹3.75 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.75 Cr

Who are its competitors?

The closest listed comparisons in its industry are BHARTI AIRTEL LIMITED, VODAFONE IDEA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 2.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE20.2%

What is the outlook?

12 analysts covering the stock expect revenue to grow about 4.1% and earnings to grow about 30.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+4.1%

Est. earnings growth+30.9%

Analysts12

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +0% while net margin moved +471% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+0%

Margin effect+471%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.3% is weak

Quality vs. Valuation

Company Quality

52/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

66/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

33.9x

3Y Median

80.4x

40 monthly readings · mean 150.7x · range 10.2x–549.4x

Sector Median

21.7x

median of 2 sector peers

🟢Current valuation is approximately 58% below its 3y median of 80.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 56% above the peer median of 21.7x.

vs. its own history

Cheap

80.4x median over 40 months · -58%

vs. sector peers

Expensive

21.7x median of 2 peers · +56%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.9x

PEG

0.43

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 4.9% to 2.5% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 2.26x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.3 points, from 15.0% to 5.7%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 58% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 15.0% to 5.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 2.26x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 56% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 0.0% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 4%✓ 5.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 0.0% CAGR
Latest reported year was 4.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹548 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 2.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹6,911 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.9x

Fair

Fairly valued against the generic band

P/B Ratio

0.58x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.12

Profitable

Profitable on a per-share basis

ROE

2.3%

Weak

Weak capital efficiency

ROCE

2.5%

Weak

Low return on total capital employed

Debt/Equity

2.26x

High

High leverage

Revenue Growth (YoY)

4.5%

Modest

Modest growth

Profit Growth (YoY)

-47.3%

Falling

Profits are shrinking

Dividend Yield

2.78%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹548 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

9.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

1.9%

Weak

Thin margins leave little room for error

Net Margin

2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

5.58

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.67

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

74.2 / 86.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8,088 Cr	₹8,637 Cr	₹8,280 Cr	₹8,088 Cr	+0.0%
EBITDA	₹1,209 Cr	₹1,045 Cr	₹1,299 Cr	₹460 Cr	-27.6%
EBITDA Margin	15.0%	12.1%	15.7%	5.7%	—
PAT (Net Profit)	₹48 Cr	₹141 Cr	₹680 Cr	₹273 Cr	+78.8%
EPS	₹0.5	₹1.47	₹7.08	₹2.82	+78.0%
ROE	0.4%	1.3%	5.9%	2.3%	—
ROCE	4.9%	4.0%	8.0%	2.5%	—
Total Debt	₹282 Cr	₹230 Cr	₹321 Cr	₹265 Cr	-2.0%
Free Cash Flow	-₹139 Cr	₹584 Cr	₹1,094 Cr	₹548 Cr	—

🟡 Revenue has been broadly flat over 3 years (0.0% a year).

🔴 EBITDA has shrunk at 27.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 15.0% to 5.7% over 3 years (-9.3 pts).

🟢 PAT (Net Profit) has grown at 78.8% a year over 3 years.

🟢 EPS has grown at 78.0% a year over 3 years.

🟢 ROE has risen from 0.4% to 2.3% over 3 years (+1.9 pts).

🔴 ROCE has fallen from 4.9% to 2.5% over 3 years (-2.4 pts).

🟢 Total Debt has shrunk at 2.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹139 Cr to ₹548 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹14,216 Cr

Total Liabilities

₹2,486 Cr

Cash & Equivalents

₹798 Cr

Operating Cash Flow

₹708 Cr

Capex

-₹160 Cr

Shareholding (proxy)

Institutional Holding

14.8%

Insider Holding

5.0%

Corporate Actions

Next Earnings

22 Oct 2026

Dividend Rate

₹2

Ex-Dividend Date

10 Sept 2026

Analyst Consensus

Recommendations

7 Buy · 1 Hold · 5 Sell

Target Price (Mean)

₹101.17

+40.6% vs CMP

Target Range

₹80 – ₹125

Peer Comparison

Company	P/E	ROE
BHARTI AIRTEL LIMITED	39.8x	20.2%
VODAFONE IDEA LIMITED	3.6x	—

Recent News

5 mixed1 general

What Zee Doubters Saw Before The Drop

Simply Wall Street, 14 Oct

ZEEL Share Price Rises 6.29%: Price Action and Fundamentals

Univest, 12 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Zee Share Price Crash 11% After SEBI Action; Company Says Fundraising Plan Remains Unaffected

India Infoline, 03 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Zee Entertainment shares extend gains for second session, rises 7% today | Check stock performance

Livemint, 12 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

ZEE Entertainment shares plunge nearly 17% after SEBI directive; here is what you need to know

Upstox, 03 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Zee Entertainment Share Price Tumbles Nearly 7%. Here's Why The Stock Is Falling

NDTV Profit, 31 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Revenue growth stays above 4% a year; ROCE stays above 8% · see Key things to watch ↑