Prabhudas Lilladher Recommends 'BUY' Zee Entertainment; Target Rs 133

• Prabhudas Lilladher maintains a 'BUY' rating for Zee Entertainment Enterprises with a revised target price of Rs 133 (previously Rs 158).
• The brokerage firm cut EPS estimates for FY27E/FY28E by 17%/16% due to a slower-than-expected recovery in the linear TV business and prolonged FMCG slowdown.
• Zee reported weak numbers with domestic ad-revenue declining for the seventh consecutive quarter and an EBITDA margin of 10.5%.
• Despite challenges, a turnaround in the digital business and improved viewership share (17.5% in 3QFY26) are noted.
• Prabhudas Lilladher projects a revenue CAGR of 5.2% over the next three years, with improving EBITDA margins.

Why It Matters: Prabhudas Lilladher recommends buying Zee Entertainment despite revised lower EPS estimates, citing digital growth and attractive valuations.