MAM
Media stocks drop marginally on the bourses
MUMBAI: The 30-stock Bombay Stock Exchange (BSE) sensex registered a 6.74-point drop on Friday, 23 May 2003 to settle at 3,049.84 (3,056.58 last week). The sensex was still above the key resistance level. The NSE Nifty was up 4.7 points to end at 968 (as compared to 973.10). Most of the media stocks dropped marginally.
On 23 May, Zee Telefilms opened the day on the BSE at Rs 79.05; dropped 1.2 per cent to end the day at Rs 77.45 (as compared to Rs 77.45 on 16 May). The volume of shares traded was around 1.47 million shares on 23 May.
On the National Stock Exchange (NSE), the Zee Telefilm scrip started the day at Rs 80.50; dropped 1.14 per cent to end the day at Rs 78.05 (as compared to Rs 77.90 on 16 May). The volume of shares traded was around 3.2 million.
A report titled “Conditional Access or Catch 22 – Who Will Blink First?” compiled by the Citigroup Smith Barney (CSB) report (dated 15 May 2003) says that the intermittent phase (during the implementation of CAS), high news flow risk would make Zee’s stock price movements extremely volatile. However, it adds that any postponement of CAS, would be positive for Zee’s share price in the sense that it would remove the overhang of
‘uncertainty of CAS implementation.
This, says the CSB report, would also postpone the long-term benefits of conditional access – ie, giving Tier 1 broadcasters a fair share of the subscription pie. If CAS is postponed, initiatives of Star/Zee’s group companies, which are engaged in roll-out of DTH services, will need to be closely monitored, cautions the CSB report. The report also notes that Zee’s head in the sky model for implementation of conditional access can be easily tailored for DTH implementation.
The CSB report retained its In-Line (2H) rating on Zee Telefilms valuation with a price target set at Rs 96. At this price, Zee would trade at 13.5x forward EPS, at the bottom end of its historical trading range, which given the approaching uncertainty as regards earnings dislocation during implementation of conditional access looks fair, says the report.
The Balaji Telefilms scrip ended the day (23 May 2003) at Rs 52.30 (down 4.10 per cent) – as compared to Rs 58.75 on 16 May. The volume traded was 552,832 shares and the counter registered more trades due to the results which were announced on 22 May.
On the NSE, the scrip ended the day at Rs 52.45 (down 4.10 per cent) as compared to Rs 53.80 on 16 May. The volume of shares traded was 1.43 million. Balaji Telefilms annual results will be announced on 22 May.
Several analysts believe that the scrip fell because the 4QFY03 sales/income was lower than that of the previous quarter (3QFY03) despite the fact it was higher than the corresponding one for 4QFY02. Analysts feel that the company will have to make an extra effort to maintain its increase in income and sales.
The Television Eighteen India scrip opened at Rs 85 on 23 May; dropped 3.41 per cent to end the day at Rs 82.10 (as compared to Rs 80.90 on 16 May) on the BSE. On the NSE, it opened at Rs 85.10; dropped 3.70 per cent and ended the day at Rs 81.95 (as compared to Rs 80.75 on 16 May).
Sri Adhikari Brothers Television Network (SABTNL) gained 1.91 per cent to end the day (23 May) Rs 61.30 (as compared to Rs 63.50 on 16 May). On the NSE, the scrip ended the day at Rs 61.70 (up 1.61 per cent) as compared to Rs 63.75 on 16 May.
Cinevistaas opened the day (23 May) at Rs 26.25; dropped 2.23 per cent to end the day at Rs 26.35 (as compared to Rs 28 on 16 May) on the BSE. On the NSE, the scrip opened at Rs 27.5; dropped 0.93 per cent to end the day at Rs 26.55 (as compared to Rs 29.40 on 16 May).
Creative Eye opened the day (23 May) at Rs 15.5; dropped 5.48 per cent to end the day at Rs 14.65 (as compared to Rs 14.25 on 16 May) on the BSE. On the NSE, the scrip dropped 4.55 per cent to end the day at Rs 14.70 (as compared to Rs 14.20 on 16 May).
The ETC Networks scrip ended the day at Rs 42.60 as compared to Rs 48.40 on 16 May on the BSE.
Brands
Estée Lauder to shed 10,000 jobs as new boss bets on digital shift
The cosmetics giant raises its profit outlook but stays silent on a possible merger with Spain’s Puig, as job cuts deepen and a three-year sales slump weighs on the turnaround
NEW YORK: Stéphane de La Faverie is not done cutting. Estée Lauder announced on Friday that it plans to eliminate as many as 3,000 additional jobs, taking its total redundancy programme to as many as 10,000 roles, up from a previous target of 7,000 announced a year ago. The company, which owns La Mer, The Ordinary, Tom Ford, and Aveda, employs roughly 57,000 people worldwide. The mathematics of what is now being contemplated is stark.
The fresh round of cuts is expected to generate a further $200 million in savings, bringing the total annual savings from the programme to as much as $1.2 billion before taxes. That money, De La Faverie has made clear, will be ploughed back into the turnaround.
A CEO in a hurry
De La Faverie, who took the helm in January 2025, inherited a company that had endured three consecutive years of annual sales declines. His response has been to move fast and cut deep. A significant portion of the latest redundancies reflects his push to reduce headcount at US department stores, long a cornerstone of Estée Lauder’s distribution model but now a channel in structural decline. In their place, he is accelerating the shift toward faster-growing online platforms, including Amazon.com and TikTok Shop, a pivot that is reshaping not just where Estée Lauder sells but how it thinks about its customers.
The numbers are moving in the right direction
Despite the pain, there are signs the medicine is working. Estée Lauder raised its profit outlook for the remainder of the fiscal year, guiding for adjusted earnings per share in the range of $2.35 to $2.45, above analyst estimates and a notable step up from the $2.05 to $2.25 range it had guided for in February. Organic net sales growth is expected to come in at 3 per cent, the company said, at the high end of the range it set out in February.
The share price tells a mixed story. After De La Faverie took charge, the stock surged nearly 60 per cent, buoyed by investor optimism that a longtime company insider could finally arrest the decline. But 2026 has been rougher: the shares have fallen 27 per cent this year, weighed down by disappointing February results and the overhang of unresolved merger talks with Spanish beauty giant Puig Brands SA. The company gave no additional details about those discussions on Friday, leaving the market to guess.
Silence on Puig
The proposed tie-up with Puig remains the most consequential unknown hanging over Estée Lauder. A deal with the Barcelona-based group, which owns brands including Carolina Herrera and Rabanne, would reshape the global luxury beauty landscape. But with nothing new to say and a turnaround still very much in progress, De La Faverie is asking investors to trust the process.
Three years of sales declines, 10,000 job cuts, and a merger that may or may not happen. At Estée Lauder, the overhaul has barely started.
