Zee Entertainmen (ZEEL)

FairStock Score: 40/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me understand Zee Entertainment as an owner. At ₹91.19 the market values the company at ₹8,400 Cr, yet the book value is ₹120.07 per share. Buying at 0.76 times book, with a Graham number of ₹126.04 offering a 30% margin of safety, certainly looks like a value stock. But low price is not my first test – quality is. The business earns only 4.89% on equity and 9.21% on capital employed. That is mediocre. Revenue has declined 0.80% in the latest year; profit grew 59.47%, but free cash flow was minus ₹416 Cr. In Graham's language, earnings should be a fair measure only if they are backed by cash. Negative cash flow makes me treat that profit growth with suspicion. The latest quarter's ₹155 Cr profit on ₹2,280 Cr sales is a thin margin. The tiny promoter holding of 3.99% is a serious governance warning: I want captain and crew with a real stake in the ship. There are positives: debt/equity of 0.03, a Piotroski score of 7/9, and a 2.78% dividend yield. But the Altman Z-score of 2.02 is in the grey zone, and the negative EV/EBITDA suggests the earnings/base distortion must be investigated. This feels like an asset play, not a compounding business. I could be interested only at a bigger discount and with evidence that cash generation improves. Until then, I’ll keep it on the watchlist.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer