Zee Entertainment Enterprises Limited CC-Dec23.pdf · 2024-02-13
I got two specific questions. Before that, let me compliment you, Punit, and also Sanjay Pugalia for the excellent Tweets Jai Shree Ram, an excellent tuning. I am sure it heralds a new future ahead for the organization and for the industry. Now can I come to two specific questions?
Yes. One is on the deal with a Japanese company, Sony, was done on 21st of December. Before that agreement was done, due diligence was done, and then binding agreement was signed. At that time, the valuations in the market was quite low. After that, the market has grown, valuation of Indian market has improved for obvious reasons, the whole world is aware of that. So aren't we selling the company, our stake very cheap. When market has gone up over 50%. So the valuation on a comparative basis should be much higher, particularly since the market share has also gone up, and our performance is far better than the rivals. Everybody knows the operating condition of Disney losing subscribers and losing profits and also Network18 huge losses and no significant increase in market share. So our valuation should be much, much higher on a relative basis. And we all know, talented and beautiful bride always has unlimited suitors. So why just rely on one company at a lower valuation, when who is who of industry, whether it is Birlas or Mahindras, everybody wants entry in the media sector. It is essential for business and political reasons. I'm sure if conversations are held, you will get much, much better valuations by giving them small stakes and that will drive the opportunity, shareholder wealth creation. I would like to have your insig hts and thought process on this. Second point is there was a talk on creeping acquisitions statement was made, whenever promoters or the associates have mentioned about creeping acquisitions and when transaction start even a small transaction, it kicks off valuation. So when is it still happening? We have seen many industries, corporates where creeping acquisition started, they are multiplied by at least 3x. Many examples are there for that. So what's your thought process on this creeping acquisition happening and quick time and when we'll be having this and so we can also easily get if not 3x, maybe 2x in the next few months, these are the triggers the whole market appreciates. We are very happy with your informal guidance of 18% margins. And I hope in the financial models of all A -Class analyst, when they consider this and a conservative growth of 8% to 10%, you have mentioned, the whole models then the re -rating will happen. Thank you once again for opportunity. Look forward to a detailed response from you on each of these three points. And hats off to you. Keep Tweeting. We look forward to your Tweets.