PL Capital Recommends BUY for ZEE Entertainment: Target Price ₹133

• PL Capital maintains a 'BUY' rating on ZEE Entertainment with a revised target price of ₹133, citing strong digital platform turnaround and increasing viewership.
• ZEE5 achieved EBITDA positivity for the first time in Q3, with 73% YoY revenue growth and 39 new content launches, indicating a robust digital business.
• The stock is considered attractively valued, trading at 9x and 7.7x FY27E and FY28E EPS respectively, offering a potential opportunity for long-term investors.
• Despite digital growth, concerns remain over the slow recovery of the TV business, declining ad revenue for seven consecutive quarters, and pressure on EBITDA margins.
• The brokerage has lowered EPS estimates for FY27 and FY28 by 17% and 16% respectively, and Q3 PAT fell by 38% to ₹1,491 crore.

Why It Matters: ZEE Entertainment shows strong digital growth and attractive valuation, but faces challenges in its traditional TV business.