Zee Entertainment Enterprises Ltd.
NSE: ZEELZee Entertainment Enterprises Ltd.: A 30-second snapshot
Zee Entertainment Enterprises (ZEEL) trades at Rs 88.34, 9.0% below its 200-DMA of Rs 97.02 and 40.5% off its 52-week high, with a 12-month price decline of 26.8%. Trailing PE is 15.0 (forward 11.6) against a profit margin of 6.84% and a D/E of 2.47 that has been rising. Revenue grew at 14.2% CAGR over five years, but earnings contracted at -4.7% CAGR over the same period.
P/E
15.0
Forward P/E
11.6
ROE
—
Debt / Equity
2.46
Profit Margin
+6.8%
Div. Yield
+2.8%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
39/100
News
8 headlines · 5 positive · 1 negative
Zee files $3 million lawsuit against Reliance-Disney joint venture - The New Indian Express
The New Indian Express
Zee Entertainment to invest ₹116 crore in Phantom Digital Effects to boost AVGC play - Fortune India
Fortune India
Zeel to invest up to Rs 116 crore in PhantomFX for AVGC push - Indian Television Dot Com
Indian Television Dot Com
Zee Entertainment Board Approves ₹116 Crore Investment in Phantom Digital Effects - scanx.trade
scanx.trade
Zee Entertainment to invest up to Rs 116 crore in VFX studio PhantomFX - The Economic Times
The Economic Times
Recent context
- ·Zee filed a $3 million lawsuit against the Reliance-Disney joint venture in May 2026, following the collapse of the Sony merger; this litigation is the dominant recent corporate event.
- ·The board approved investment of up to Rs 116 crore in Phantom Digital Effects (PhantomFX), signalling a strategic push into the Animation, Visual Effects, Gaming, and Comics (AVGC) segment.
- ·Price sits approximately 6.9% above the 50-DMA of Rs 82.67 with RSI at 51 (neutral), reflecting a modest short-term recovery within a longer medium-term downtrend.
Strengths
- +Trailing PE of 15.0 and forward PE of 11.6 are the lowest among the four tracked sector peers (PVRINOX: 56.2, Saregama: 38.7, Sun TV: 13.4), with ZEEL trading close to Sun TV on this metric.
- +Revenue growth of 14.2% CAGR over five years indicates that the business has expanded its top line meaningfully over the medium term.
- +Dividend yield of 2.75% provides an income component relative to the current price of Rs 88.34.
- +FCF was positive in 3 of the available fiscal years, indicating the company has generated cash in a majority of recent periods despite a rising debt load.
Weaknesses
- −Earnings contracted at -4.7% CAGR over five years while revenues grew at 14.2%, resulting in a profit margin of only 6.84% — the gap between revenue and earnings trajectories points to sustained cost or competitive pressure.
- −D/E of 2.47 is elevated and the trend is rising; ROE has not exceeded 15% in any reported year and the consistency score is 0, indicating no year of high-quality returns in the tracked history.
- −Quality score of 38/100 ranks last (4th of 4) among sector peers, with Saregama at 66 and Sun TV at 50; the stock has declined 26.8% over 12 months and sits 9.0% below its 200-DMA.
- −Active litigation — a $3 million lawsuit filed against the Reliance-Disney JV in May 2026 — introduces legal cost and reputational uncertainty on top of the already-stressed financial profile.
Open questions
- ?Does the 14.2% five-year revenue CAGR reflect genuine audience and advertising market share gains, or is it driven by one-time licensing and content monetisation events that may not recur?
- ?What is the trajectory of the D/E ratio over the next two to three years given the Rs 116 crore AVGC investment and ongoing legal costs, and at what level would interest coverage become a concern?
- ?How does the competitive positioning of ZEEL differ from Sun TV Network, given that both trade at comparable trailing PEs but Sun TV carries a materially higher quality score?
- ?Does the $3 million lawsuit against the Reliance-Disney JV signal a broader deterioration of content and distribution partnerships, and what is the realistic timeline for resolution?
Peer comparison: Media
Ranks 4 of 4 on qualityTechnical state
Current price
₹88.34
SMA 50
₹82.67
SMA 200
₹97.02
RSI (14)
51.0 (neutral)
From 52w high
-40.5%
1Y return
-26.8%
3M return
-4.9%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highEarnings declined at -4.7% CAGR over 5 years against revenue growth of 14.2%, indicating top-line expansion has not translated to bottom-line gains. Profit margin is 6.84%, quality score is 38/100, and ROE never exceeded 15% in any reported year; consistency score is 0.
- highD/E of 2.47 is elevated and the debt trend is rising. FCF was positive in only 3 of the available years, signalling persistent capital allocation and leverage concerns.
- mediumPrice (Rs 88.34) is 9.0% below the 200-DMA (Rs 97.02) and 40.5% below the 52-week high. The stock has declined 26.8% over the past 12 months, remaining in a sustained medium-term downtrend.
- mediumZee filed a $3 million lawsuit against the Reliance-Disney joint venture (reported May 2026), signalling ongoing post-merger-collapse disputes that introduce legal and reputational uncertainty.
- lowZEEL ranks last (4th of 4) on quality score among tracked peers at 38, vs Saregama at 66 and Sun TV at 50. Peer ROE and 1-year price data are unavailable for all three peers, limiting the depth of relative analysis.
- lowNews sample covers 8 items; sentiment conclusions (5 positive, 2 neutral, 1 negative) carry limited statistical confidence at this volume.
Cross-section contradictions
- Revenue grew at 14.2% CAGR over 5 years while earnings contracted at -4.7% CAGR — sustained top-line growth has not flowed to the bottom line, suggesting cost pressures or competitive dynamics are absorbing incremental revenue.
- Trailing PE of 15.0 is below the sector peer median (PVRINOX 56.2, Saregama 38.7) yet the quality score (38) also ranks lowest among peers — a lower multiple alongside lower quality does not straightforwardly indicate value.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days