Current Rating and Its Significance
MarketsMOJO currently assigns a 'Sell' rating to Zee Entertainment Enterprises Ltd, indicating a cautious stance for investors considering this stock. This rating suggests that the stock is expected to underperform relative to the broader market or its sector peers in the near term. The rating was last revised on 17 Oct 2025, when the company’s Mojo Score improved from 28 to 38 points, moving the grade from 'Strong Sell' to 'Sell'. Despite this improvement, the recommendation remains negative, reflecting ongoing challenges in the company’s financial and technical outlook.
Here’s How Zee Entertainment Looks Today
As of 20 January 2026, the stock’s performance and financial indicators continue to signal caution. Over the past year, Zee Entertainment has delivered a negative return of -28.64%, significantly underperforming the BSE500 benchmark and reflecting persistent headwinds in the media and entertainment sector. The stock’s short-term trends are also weak, with a 6-month decline of -39.07% and a 3-month drop of -17.13%. Year-to-date, the stock has fallen by -4.05%, and the most recent trading day saw a decline of -2.10%.
Quality Assessment
The company’s quality grade is currently rated as 'good'. This suggests that Zee Entertainment maintains a reasonable level of operational efficiency and business fundamentals despite recent setbacks. However, the quality rating does not fully offset the negative trends seen in other parameters. Investors should note that while the company has a solid foundation, recent quarterly results have shown significant deterioration, including a 60.0% fall in profit after tax (PAT) for the quarter ended September 2025, with PAT at ₹76.50 crores. Additionally, the PBDIT for the same quarter was at a low ₹159.00 crores, indicating pressure on operating profitability.
Valuation Perspective
Valuation remains a bright spot for Zee Entertainment, with a 'very attractive' grade assigned. This implies that the stock is trading at a price level that could offer value relative to its earnings potential and asset base. For value-oriented investors, this could represent an opportunity to acquire shares at a discount. However, valuation alone is not sufficient to warrant a positive rating given the company’s financial and technical challenges.
Financial Trend and Stability
The financial grade is currently 'negative', reflecting deteriorating financial health and operational challenges. The company’s debtor turnover ratio for the half-year period is at a low 0.44 times, signalling potential issues with receivables management and cash flow. This is compounded by consistent underperformance against the benchmark over the last three years, with the stock generating negative returns in each annual period. Such trends raise concerns about the company’s ability to sustain growth and profitability in the near term.
Technical Analysis
From a technical standpoint, Zee Entertainment is rated 'bearish'. The stock’s price momentum and chart patterns indicate downward pressure, which is consistent with the recent negative returns and volatility. This technical weakness suggests that the stock may continue to face selling pressure, making it less attractive for short-term traders or momentum investors.
Implications for Investors
For investors, the 'Sell' rating on Zee Entertainment Enterprises Ltd signals a need for caution. While the valuation appears attractive, the negative financial trends and bearish technical outlook suggest that the stock may face further challenges before stabilising. Investors should carefully weigh the risks associated with the company’s current performance against the potential for value gains. Those with a higher risk tolerance and a long-term horizon might consider monitoring the stock for signs of recovery, but more conservative investors may prefer to avoid exposure at this stage.
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Summary of Key Metrics as of 20 January 2026
The latest data shows Zee Entertainment’s stock continues to struggle with negative returns across multiple time frames, including a 1-month decline of -4.74% and a 1-week drop of -3.24%. The company’s financial results remain under pressure, with the September 2025 quarter marking a significant decline in profitability and operational efficiency. Despite a favourable valuation grade, the negative financial trend and bearish technical signals weigh heavily on the stock’s outlook.
Investors should consider these factors carefully when evaluating Zee Entertainment Enterprises Ltd as part of their portfolio. The current 'Sell' rating reflects a comprehensive assessment of quality, valuation, financial trend, and technicals, providing a balanced view of the stock’s prospects in the current market environment.
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