Sumary of Zee Entertainment good to buy as concerns over corporate governance will be put to bed after management change, say analysts:
- Shares of Zee Entertainment Enterprises gave 40% returns in one trading session and today the stock is up 4% as analysts turn positive on the stock.
- Analysts believe resignations of independent directors have brought back investor confidence and triggered the stock for good.
- After resignations of two independent directors, thousands of investors picked up Zee Entertainment’s stock, on Tuesday, including marquee investor Rakesh Jhunjhunwala.
- BrokeragesStock ratingDolat CapitalBUYKotak Institutional EquitiesBUYDeen Dayal InvestmentsBUYAll this, after the broadcaster’s largest shareholder Invesco, which holds 7.7% stake in the company, demanded resignation of Ashok Kurien and Manish Chokhani along with that of the managing director Punit Goenka.
- This was followed by a report from proxy advisory firm Institutional Investors Advisory Services (IIAS) that highlighted concerns over the managing director’s increasing salary and asked shareholders not to vote for re-appointing independent directors Ashok Kurien and Manish Chokhani on the company’s board.
- Karan Taurani, senior vice president-research analyst, Elara Securities said that if the new management does come in, we do see a re-rating trigger here, which means stock price would rise.