Zee Media Corporation Upgraded to 'Hold' by MarketsMOJO, But Risks Remain

Zee Media Corporation, a smallcap company in the TV broadcasting and software industry, has recently been upgraded to a 'Hold' by MarketsMOJO on September 30, 2024.
The decision to upgrade the stock to a 'Hold' is based on several factors. Firstly, the company has a strong ability to service its debt with a low Debt to EBITDA ratio of 1.18 times. This indicates a stable financial position and reduces the risk for investors.

Moreover, the stock is currently in a bullish range and the technical trend has improved from mildly bullish on September 30, 2024. Multiple technical indicators such as MACD, Bollinger Band, KST, and OBV are also showing bullish signals.

In terms of performance, Zee Media Corporation has outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, with a return of 75.69% in the last 1 year. However, the company has shown poor long-term growth with an annual operating profit growth rate of -177.71% over the last 5 years.

The company's financial results for June 2024 were also flat, with a significant increase in interest expenses and a decrease in cash and cash equivalents. The debt-equity ratio is also at its highest at 0.85 times, indicating a higher reliance on debt for financing.

One of the major risks associated with this stock is its negative EBITDA, which makes it a risky investment compared to its historical valuations. While the stock has generated a good return in the past year, its profits have declined by -3.9%.

It is also worth noting that despite being a smallcap company, domestic mutual funds hold only 0% of the company. This could signify that they are not comfortable with the current price or the business, as they have the capability to conduct in-depth research on companies.

In conclusion, while Zee Media Corporation has shown a strong ability to service its debt and has a bullish technical trend, its poor long-term growth and negative EBITDA make it a risky investment. Investors should carefully consider these factors before making any investment decisions.