FINANCE & STOCK ADVICE: My View On Zee News Ltd.

About The Company

Zee News Ltd (ZNL) demerged from Zee Telefilms Ltd on March 31 2006 and became a listed entity on January 10 2007.

Zee News reaches millions of Indians thorough a clutch of news and regional entertainment channels. The specific channels operated by Zee News Ltd are Zee News, Zee Business, Zee Marathi, Zee Bangla, Zee Punjabi, Zee Gujarati, Zee Telugu, Zee Kannada and Zee 24 Taas and 24 Ghanta. Zee News Limited also supplies content to the international broadcasting business of Zee in the US, Europe, Africa, Middle East and Asia Pacific.

About The Financials

ZNL reported a topline of Rs 367.5 crore and PAT of Rs 37.1 crore for FY08. For Q1FY09, revenues (Rs 112.7 crore) grew 48% Y-o-Y on the back of 39% growth in existing channels and 165% growth in new channels. PAT for Q1FY09 stood at Rs 9.3 crore, growing 60% Y-o-Y.

About The Stock

ZNL is in dominant positions in a majority of its regional GECs. The company fares better than its key comparable channels in the broadcasting space, IBN7 and NDTV India. At the current market price of Rs 42.2, the stock is trading at 17.58x FY09E EPS of Rs 2.4 and 12.78x FY10E EPS of Rs 3.3. At the recommended price of Rs 50.7, the stock discounts the FY10E EPS by 15.36x. I would recommend the stock with a target price of Rs 50.7 over a six-month time frame.

Technical Out Look

The stock has bounced back from the level of 38.50 with high volumes indicating bullishness. This also suggests that the uptrend is building. However, during January and May 2008, prices came under pressure due to profit booking. This was in line with the market, as a whole. However, at present levels, the stock is consolidating before the up move. Among oscillators, the RSI is rising from the oversold territory and is currently at 45 showing strength. The stock has recently moved above the 20 days simple moving average, which is a bullish indication. The immediate support comes around 38.50 levels. One can expect a target around 51.45 in the coming months, which is the 50% retracement level of the recent fall from 64.5 to 38.5.

Disclaimer : I do not have any personal holding in this stock.

MULTI BAGGER STOCK GROUP

Some of my group's multi bagger picks during the rally were NMDC , MMTC , STC , Larsen ,Jindal Steel & Power , Unitech , BF Utilities , Jai Corporation , Walchand Nagar Industries, RNRL , Reliance Infra (Reliance Energy) etc.

I had been long associated with a corporate engaged in financial services , where with the assistance of specialized tools along with my special analysis as per some historical accepted theories of stock market like W. D. GANN's Theory , Elliot Wave Theory and others are used with reliable insider information of so called " operators" who play a major role to make a stock ,a Multi Bagger ,I do make my gem picks in this market.

I had been running my group , where the associated people get the reliable and most beneficial to get the unexpected return as seen in the above mentioned tips. Say for example the stock called MMTC had jumped from 2000 level to 56000 per share of historical price where the capital appreciated by 28 times in very short period with 2700% return on capital employed. Likewise in RNRL we started accumulating at RS 25 level from where we saw it moving at 250 level giving 10 times with 900% return.

These sort of return is helpful as ,

1. Handsome gain will make a jack to our capital.

2. Limited stocks trade , as daily trade could be avoided , which is more risky.

3. Long term capital gain , so no tax liability.

4. Whole income in white, which could be further deposited into fixed deposit to get assured monthly income later.

5. Strong income tax file without paying any taxes.

Our role here could be summarized as :

1. Giving tips to all registered member at proper time , when the stock is just about to take off, neither too early not too late.

2. Make sure investor do not gt stuck into it.

3. Recommend to exit when the operator is about to leave it.which is the most important work or else the whole accumulated and deemed profit will be washed away along with part of investment and will remain stuck for long - long period.


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My View On Zee News Ltd.