Zee Entertainment

Industry Profile  :  Media and entertainment sector is like sunrise in Indian economy. As the consumer demand is changing with increasing income levels, the sector is on the cusp of strong phase of growth. Different segment under the sector like film making is showing great strength. Increasing use of internet is also helping sector to grow as it is necessary for companies like Amazon Prime videos, Netflix even for YouTube.

The Indian media & entertainment sector is expected to grow at a Compound Annual Growth Rate (CAGR) of 14.3 per cent to touch Rs 2.26 trillion (US$ 33.9 billion) by 2020, while revenues from advertising is expected to grow at 15.9 per cent to Rs 99,400 crore (US$ 14.91 billion). Over FY 2015-20, radio will likely grow at a CAGR of 16.9 per cent, while digital advertising will grow at 33.5 per cent. The largest segment, India’s television industry, is expected to grow at a CAGR of 15 per cent, while print media is expected to grow at a CAGR of 8.6 per cent. India is one of the highest spending and fastest growing advertising market globally. The country’s expenditure on advertising is expected to grow by 11.2 per cent in 2017, based on various media events like T20 Cricket World Cup, the Indian Premier League (IPL) and State elections. Television segment, which continues to hold highest share of spending, is expected to grow 11 per cent in 2017, led by increased spending by packaged consumer goods brands and e-commerce companies.

Many large deals are taking place in industry. Reliance industries bought 25% stake in Balaji entertainment. It is also holding stake in Network 18 and TV 18.

 

Company Profile The company is subsidiary of Essel group, founded by Subhash Chandra. The company is having 38 international and 30 national channels and operating across 169 countries. The Company has a library, housing over 222,703 hours of television content. It also holding rights to approximately 3,820 movie titles. The Company’s brands include Zee TV, Zee Cinema, Zee Action, Zee Classic, Zee Anmol, Zee Cafe, Zee Studio, Zee Salaam, Zing, ETC Bollywood, Zee Q and Zindagi. The Company has a range of offering in the regional language domain with channels, such as Zee Marathi, Zee Talkies, Zee Bangla, Zee Bangla Cinema, Zee Telugu, Zee Kannada, Zee Tamil and Sarthak TV. It high definition offerings include Zee TV HD, Zee Cinema HD, &tv HD, Zee Studio HD, Zee Cafe HD, &pictures HD, Ten 1 HD and Ten Golf HD. The company also owned siti cable, Zee music company. The company exist in nearly all major language through different channels

Shareholding Pattern  :  Six promoter entities hold 43.07% out of which part is pledge. Mutual Fund hold 4.24%. o.14% held by financial institutions. 46.35% hold by foreign investors. Remaining is held by public.

Financials and Ratio   :  

 2010-112011-122012-132013-142014-152015-162016-17
Revenue2,231.002,332.902,560.603,071.203,418.304,201.604,922.50
Net Profit576.40489.70640.70772.30831.80859.301,034.00
NPM26.5622.2124.9625.1024.2720.4220.98
EPS5.895.056.717.947.157.4310.77
Book Value29.6931.2335.1420.3226.7531.4846.06
Dividend per share21.5222.252.252.50
Dividend payout33.9329.3629.9524.8725.9725.1420.89
ROE19.8516.3519.1039.5832.3828.4323.38
ROCE19.7416.2518.9819.3217.9716.9117.25
ROA16.1413.9015.9816.3714.8513.9213.89
Debt To Equity0000000
Asset Turnover60.7662.5764.0165.2061.2068.1766.22

Future Prospectus :  Media sector is going through large growth and as television segment is leading segment. The company is leader in the segment. Major  source of income for company is advertising and the sector is dominated by digitization. ecommerce companies like Flipkart is also entering in segment.  though the company is operating via many different segment and many channels. but still entry of Netflix, amazon is big challenge for company.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter