GECs
JV unlikely to buttress Zee scrip: Oswal Securities
Yesterday Zee Telefilms and Turner International India (a 100 per cent subsidiary of AOL Time Warner) announced a joint venture with Zee holding a 74 per cent equity stake and Turner holding the balance 26 per cent.
What happened on the bourses following this piece of positive news makes for interesting reading though. The Zee scrip has been in a downward spiral since peaking on 11 December at Rs 151.45. The scrip closed down at Rs 134.35 yesterday and continued its fall to close at Rs 123.75 today.
According to Motilal Oswal Securities though, this movement is not surprising. A report it has prepared states that the core issues dogging Zee remain – that of management quality, transparency, disclosure standards and unauthorised advances to group companies. Zee is also badly in need of funds to repay its debt of Rs 7 billion plus. It needs money for its hybrid fibre coax (HFC) network and acquisition of the last mile too. The number of days debts are outstanding on a consolidated basis has touched 180 days, clearly indicating stress on the business. None of these crucial issues would be addressed by this marketing JV, due to which Oswal Securities remains distinctly cool to these developments.
The report it has prepared further states that prospects of any resurgence driven by content continues to be bleak. Viewership is down significantly, making Zee TV the No 3 Hindi entertainment channel. Zee TV’s channel share has slipped to an abysmal 4.4 per cent compared to Sony TV’s 8.2 per cent and Star Plus’ 19.4 per cent in the prime time slot. Now, the gap with Sony is also increasing continuously and there seems to be no major reversal in sight.
The management owes Zee Telefilms around RS 2.2 billion and there are no evident signs of repayment of the dues coming through. This after having missed the promised deadline several times. Even if the new JV brings along benefits in terms of better acceptance of the bouquet by MSOs, earnings will not get impacted materially over the next 4 quarters.
Oswal Securities expects an EPS of Rs 4.96 in FY02 (a growth of 12 per cent) and Rs 5.95 in FY03 (a growth of 20 per cent).
The stock price has run up from Rs 70 exclusively on the hopes of induction of a strategic partner (AOL Time Warner) in Zee Telefilms at a price of Rs175 plus. This JV with Turner International does not match up to anything close to a strategic stake by AOL Time Warner in Zee Telefilms.
This is a major disappointment for the market after expectations were run up so high. At the current price, the stock quotes at a P/E of 27x FY02 and 22.4x FY03 earnings. With valuations clearly stretched, the stock price will fall from these levels, the report concludes.
GECs
Sony PAL to air Sankat Mochan Hanuman from May 4 at 9 PM
Mythological series brings Lord Hanuman’s tale of devotion and courage back to TV
MUMBAI: Sony PAL is set to bring back the timeless mythological series Sankat Mochan Hanuman, with its premiere scheduled for May 4 at 9 PM. The show revisits the legendary journey of Lord Hanuman, offering viewers a chance to reconnect with one of Indian mythology’s most revered figures.
Centred on themes of devotion, courage and righteousness, the series traces Hanuman’s unwavering loyalty to Lord Ram and his fearless stand against evil. With its mix of dramatic storytelling and visually rich sequences, the show aims to deliver both entertainment and spiritual resonance, appealing to audiences across age groups.
The narrative unfolds as a larger-than-life saga, positioning Hanuman as the ultimate protector and a symbol of strength and selfless service. His journey, rooted in faith and duty, continues to strike a chord with viewers, making the series as relevant today as ever.
The cast features Gagan Malik as Lord Ram, Debalina Chatterjee as Sita, Nirbhay Wadhwa in the titular role, and Saurav Gurjar as Raavan. Their performances bring depth and authenticity to characters deeply embedded in Indian cultural memory.
With its return to television, the show is positioned as more than just a rerun. It taps into a renewed appetite for mythological storytelling, blending nostalgia with timeless values.
As audiences increasingly seek content that resonates beyond entertainment, ‘Sankat Mochan Hanuman’ offers a familiar yet powerful narrative, reminding viewers that stories of faith and courage never really go out of style.
