Markets have given a thumbs up to the Zee Sony merger news;stock may get re-rated
Published On: Wednesday, September 22, 2021 | By: Team KnowMyStock
The news of Zee Entertainment - Sony Pictures India merger news has resulted in the stock of the Punit Goenka controlled firm hitting the upper circuit of 20 percent at Rs 306.75 on the BSE. This is also the 52-week high level for the counter. According to the analysts, the deal should put to rest investor's concerns regarding corporate governance issues and can result in significant re-rating for the stock going ahead. It currently trades at around 16/14x FY23/24 earnings. Among the other Essel Group stocks, Dish TV India surged 10 percent to Rs 21.54 on the BSE. Zee Media Corporation hit the upper circuit of 5 percent at Rs 12.36, while Zee Learn was up 20 percent to Rs 16.64 on the BSE in intraday trades. In comparison, the S&P BSE Sensex gained 0.27 percent at 59,162 points.
“The deal is a win-win for both the companies and investors. While Zee will get the financial backing of a foreign entity, Sony will get a better hold on the movies segment where Zee has a strong presence. Shareholders, on their part, can be assured of corporate governance issues, if any, being put to rest. All this can be a good trigger for the stock going ahead," say experts.
We are on Telegram!
JOIN our telegram channel to receive updates on Financial News and Stock and FNO Tips.
Click Here!
Follow Us On:
