MARCH 6: Rumours of Zee Telefilms being included in the Morgan Stanely Emerging Markets index has helped the stock re-gain its pre-budget loss. On Monday, Zee Telefilms closed at Rs 1547. Analysts expect the company to grow at a very high rate in the future. A target of Rs 3000 has been set for the scrip in the next twelve months. For the first 9 months of the current fiscal, Zee's net profit at Rs 61.8 crore has surpassed full fiscal net profit of Rs 61.14 crore.During the current fiscal, the company's equity has expanded from Rs 18.67 crore to Rs 38.84 crore thanks to the merger of Zee Media Worldwide Ltd. The company has been in the limelight during the recent past after it merged Zee Multimedia WorldWide into it and then acquired Star TV's stake in Asia TV. The latter has transformed the company from a mere broadcasting house into a channel. This will allow it to earn advertisement revenues and since the latter has higher margins than Zee Telefilms, margins are expected to increase from current levels. Acquisition of Zee Media Worldwide will allow the company to tap the high growth markets of USA, Africa and UK.
Capitalising on the strong Zee brand, Zee Telefilms is expected to post healthy growth rates in both advertisement and subscription revenues. Advertisement being a function of the channel's popularity, Zee will continue to have an edge over others. The main growth driver will subscription revenues from Zee Media Worldwide and pay channels launched through the DTO network. However, the company's recent foray into internet will take time to yield results.
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