Result Update July 16, 2015

Rating matrix Rating : Hold Zee Entertainment (ZEETEL) | 376 Target : | 380 Target Period : 12 months Potential Upside : 1% New channels to aid growth tempo…

What’s changed? • Revenue growth of 23.4% YoY was primarily aided by incremental Target Changed from | 335 to | 380 ad revenues from newly launched channels and sports revenues that EPS FY16E Changed from | 9.7 to | 10.2 resulted in ad revenue growth of 25.4% YoY to | 779.9 crore, vs. our EPS FY17E Changed from | 11.6 to | 12.3 expectations of 15.1% YoY growth. Subscription revenues came in at Rating Unchanged | 462.5 crore, slightly below our expectations of | 468.3 crore. The other operating income came in at | 97.4 crore, lower than our Quarterly performance expectations Q1FY16 Q1FY15 YoY (%) Q4FY15 QoQ (%) • The EBITDA came in at | 311.2 crore vs. our expectation of | 268.4 Revenue 1,339.9 1,085.7 23.4 1,347.1 -0.5 EBITDA 311.2 309.2 0.7 270.8 14.9 crore. The beat on EBITDA was due to lower-than-expected EBITDA (%) 23.2 28.5 -525 bps 20.1 313 bps operational costs that came in at | 610.8 crore vs. our expectation of | 654.6 crore. The EBITDA was also aided by positive contribution of PAT 243.8 210.6 15.8 230.8 5.6 | 1.5 crore vs. loss expectations from the sports business. EBITDA Key financials margins came in at 23.2% vs. expectations of 20.5% | Crore FY14 FY15 FY16E FY17E • PAT came in at | 243.8 crore (vs. expectation of | 205.2 crore), Net Sales 4,422 4,884 5,521 6,248 higher due to higher operating leverage EBITDA 1,204 1,254 1,281 1,590 Net Profit 891 978 975 1,177 Ad revenue to be aided by new channel launches… EPS (|) 9.3 10.2 10.2 12.3 Zee Entertainment, one of the leading media conglomerates with a bouquet of ~33 domestic channels, has a presence across genres Valuation summary ranging from general entertainment (GEC) to music, sports and regional. FY14 FY15 FY16E FY17E Zee TV, its flagship GEC, has a viewership share of ~18.2%, and has P/E 40.5 36.9 37.0 30.7 Target P/E 40.9 37.3 37.4 31.0 consistently remained among the top three GECs in the last two years. EV / EBITDA 29.1 27.5 26.6 21.0 The company has benefited from improved rating and higher than P/BV 7.6 6.5 5.8 5.0 industry advertisement growth (18.9% over FY12-15 to | 2660.0 crore). RoNW 18.8 17.6 15.7 16.4 The company reported ad revenue growth of 25.4% YoY aided by the RoCE 27.9 25.3 23.4 24.5 incremental revenue flows from &TV and Zee Zindagi and improved performance of the overall portfolio. We have factored in ad revenue

growth of 18.0% CAGR in FY15-17E to | 3703.8 crore. Stock data Particular Amount New launches to keep EBITDA under pressure in near term… Market Capitalization 36,088.9 Zee had recently launched two new channels viz. Zee Zindagi and &TV, Total Debt (FY15) 1.2 which would escalate programming and administrative expenses for the Cash and Investments (FY15) 736.4 company. Though the ad inventory may see a linear increase, the EV 34,524.6 demand from advertisers and increase in ad yields from new channels 52 week H/L 394 / 269 would only happen gradually. This could be margin accretive in the Equity capital 98.3 Face value 1.0 longer term. Zee is expected to post an EBITDA margin of about 23.2% and 25.4% in FY16E and FY17E, respectively. Price performance Acquires Sarthak Entertainment, leading Odia GEC 1M 3M 6M 12M TV18 21.3 9.2 36.6 31.3 In a bid to augment its regional presence, Zee acquired a 100% equity Sun TV -2.8 -28.9 -23.7 -35.4 stake in Sarthak Entertainment Pvt Ltd, an entity that owns and operates Sarthak, a leading Odia language general entertainment channel with a ZEEL 12.2 8.0 4.0 27.6 25% viewership share. The deal is said to have been all-cash valued at Research Analyst | 115 crore. Though the financials of the channel are unavailable Karan Mittal currently, as per the management commentary, the channel would be [email protected] EBITDA accretive. Bhupendra Tiwary Maintain HOLD, economy yet to rebound, margins to remain subdued [email protected] The revival in ad revenues is yet to take place and subscription revenues Sneha Agarwal are also yet to see a revival owing to the tepid digitisation pace. In [email protected] addition, incremental costs from new channel launches are expected to

keep margins under check. We value the stock at 31x FY17E EPS of

| 12.3, valuing the stock at a revised target price of | 380 and maintaining our HOLD recommendation.

ICICI Securities Ltd | Retail Equity Research

Variance analysis Q1FY16 Q1FY16E Q1FY15 Q4FY15 YoY (%) QoQ (%) Comments Revenue 1,339.9 1,309.2 1,085.7 1,347.1 23.4 -0.5 Revenues came in higher-than-expected due to higher-than-expected advertisement revenues, which came in at | 779.9 crore vs. our expectation of ad revenues of | 716 crore. Ad revenues came in higher due to traction seen in the overall channel portfolio and incremental ad revenues from Zee Zindagi and &TV Other Income 68.0 60.0 39.0 56.4 74.5 20.5 Raw Material Expenses 0.0 0.0 0.0 0.0 NA NA Employee Expenses 138.0 130.9 111.7 120.9 23.5 14.2 Administrative Expenses 279.9 255.3 230.8 335.3 21.3 -16.5 Higher due to new show launches with regard to new channels Marketing Expenses 0.0 0.0 0.0 0.0 NA NA Operational Cost 610.8 654.6 434.0 620.1 40.7 -1.5 Higher on a YoY basis due to incremental content costs for new channels

Other Expenses 0.0 0.0 0.0 0.0 NA NA EBITDA 311.2 268.4 309.2 270.8 0.7 14.9 EBITDA Margin (%) 23.2 20.5 28.5 20.1 -525 bps 313 bps Lower-than-expected content costs and higher operating leverage from decent ad revenue growth resulted in higher-than-expected EBITDA margin

Depreciation 16.8 19.9 19.6 17.4 -14.1 -3.4 Interest 1.5 2.8 2.2 3.0 -29.2 -49.0

Total Tax 118.5 100.9 116.4 74.9 1.9 58.4 PAT 243.8 205.2 210.6 230.8 15.8 5.6 Higher operating leverage aided PAT

Key Metrics Ad Revenue Growth 25.4% 15.1% 17.4% 15.0% 46.1 69.2 Better-than-expected growth in the company’s channel portfolio and incremental revenues from new channels led to high advertisement revenue growth Domestic Subscription % 13.6% 14.9% 2.2% 24.9% 513.6 -45.1 International Subscription % -20.5% -19.2% 10.8% -27.8% -289.5 -26.1

Source: Company, ICICIdirect.com Research

Change in estimates FY16E FY17E (| Crore) Old New % Change Old New % Change Comments Revenue 5,372.2 5,521.2 2.8 6,093.1 6,247.7 2.5 We have revised our ad revenue estimates upwards owing to the sizeable incremental revenues from &TV and traction seen in other channels. In addition, revenues would also be aided by higher syndication revenues EBITDA 1,241.4 1,281.1 3.2 1,497.0 1,589.7 6.2 Increase in the EBITDA accretive advertisement revenues would aid the EBITDA. In addition, we have slightly reduced our content cost estimates, which would aid the EBITDA EBITDA Margin (%) 23.1 23.2 10 bps 24.6 25.4 88 bps PAT 932.2 975.1 4.6 1,115.7 1,177.1 5.5 High operating leverage stemming from higher revenues would aid the PAT EPS (|) 9.7 10.2 4.6 11.6 12.3 5.5

Source: Company, ICICIdirect.com Research

Assumptions Current Earlier FY14 FY15 FY16E FY17E FY16E FY17E Ad Revenue Growth 21.2% 11.3% 21.2% 15.3% 15.8% 16.3% We have revised our ad revenue estimates upwards owing to the sizeable incremental revenues from &TV and traction seen in other channels Domestic Subscription % 12.9% 8.0% 9.5% 11.4% 9.5% 14.5% International Subscription % 5.5% -17.3% 0.3% 11.4% -1.0% 8.2%

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research Page 2

Company Analysis Ad growth revival to be gradual process… The company has benefited from improved rating and higher than industry advertisement growth (18.9% over FY12-15 to | 2660.0 crore). Though the corporate earnings have remained weak, we believe there would be a gradual revival in the ad growth scenario, which would benefit Zee. The company currently operates ad inventory of about 30 hours that has peaked. The coming growth would only be price led. The recently launched GEC, &TV, is utilising 22 hours inventory while the company intends to increase utilisation in the range of the flagship channel. With the complete impact of &TV and Zee Zindagi in the coming years, we expect ad revenue growth of 18.0% CAGR in FY15-17E to | 3703.8 crore.

Exhibit 1: Ad growth trend

4,000.0 3,703.8 30.0 3,500.0 3,212.7 24.0 21.2 25.0 3,000.0 2,660.3 2,380.0 20.8 20.0 2,500.0 1,963.9 2,000.0 11.8 15.3 15.0(%)

| crore 1,500.0 10.0 1,000.0 5.0 500.0 - - FY13 FY14 FY15E FY16E FY17E

Ad revenue Growth

Source: Company, ICICIdirect.com Research

Subscription revenue growth to slow down with delay in digitisation…. Digitisation activity still remains tepid in light of the shift in the Phase III and IV digitisation deadline. In such a scenario, the revenue stream could get a fillip, going ahead, as and when the company shifts to RIO based deals and new channels are able to garner increasing market share. The company awaits the Supreme Court decision on the 27.5% hike in the non-DAS areas before shifting towards the RIO related pricing.

The company is striving hard to win additional India specific sports properties, which will augment subscription revenues. We have factored in a subscription revenue growth of 9.4% CAGR in FY15E-17E in total subscription revenues to | 2183.9 crore.

The mobile app Ditto TV is also gaining traction. Currently, it has 15 million subscribers of which a million are paid with an average realisation of | 50 per month. It is expected to gain traction as the mobile internet continues to grow.

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Exhibit 2: Subscription revenue trends 27.7 2,500.0 30.0

2,000.0 25.0 20.0 1,500.0

% 15.0

| crore 1,000.0 10.8 11.4 10.0 7.5 500.0 5.0 1.2 0.0 1,627.0 1,802.8 1,824.1 1,960.3 2,183.9 0.0 FY13 FY14E FY15E FY16E FY17E

Subscription Growth

Source: Company, ICICIdirect.com Research

Sports business continues to be lumpy The company reported a quarter of positive EBITDA from the sports business in the quarter, which was at about | 1.5 crore. This is expected to reduce the yearly losses from the sports business. The sports business is lumpy in nature and varies as per the sports related properties in its kitty. The company has guided at sports losses of about | 100 crore in the coming year. The number could vary depending on any additional sports property on its platform. However, going ahead, with digitisation benefits accruing, the monetisation may be easier while sports losses are expected to reduce. New launches to keep EBITDA under pressure in the near term …. Zee had recently launched two new channels viz. Zee Zindagi and &TV, which would escalate the programming and administrative expenses for the company. Though the ad inventory is expected to see a linear increase, the demand from advertisers and increase in ad yields from new channels would only happen gradually and could be margin accretive in the longer term. Zee is expected to post an EBITDA margin of about 23.2% and 25.4% in FY16E and FY17E, respectively. Acquires Sarthak Entertainment, leading Odia GEC In a bid to augment its regional presence, Zee acquired a 100% equity stake in Sarthak Entertainment Pvt Ltd, an entity which owns and operates Sarthak, a leading Odia language general entertainment channel with a 25% viewership share. The deal is said to have been all-cash valued at | 115 crore. Though the financials of the channel are unavailable currently, as per the management commentary, the channel would be EBITDA accretive to Zee’s financials.

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Valuation The revival in ad revenues is yet to take place while subscription revenues are also yet to see a revival owing to the tepid digitisation pace. In addition, incremental costs from new channel launches are expected to keep margins under check. We value the stock at 31x FY17E EPS of | 12.3, valuing the stock at a revised target price of | 380 and maintaining our HOLD recommendation.

Exhibit 3: Valuations Sales Growth EPS Growth PE EV/EBITDA RoNW RoCE (| cr) (%) (|) (%) (x) (x) (%) (%) FY14 4421.7 46.7 9.3 45.7 40.5 29.1 18.8 27.9 FY15 4883.7 10.4 10.2 9.7 36.9 27.5 17.6 25.3 FY16E 5521.2 13.1 10.2 -0.2 37.0 26.6 15.7 23.4 FY17E 6247.7 13.2 12.3 20.7 30.7 21.0 16.4 24.5

Source: Company, ICICIdirect.com Research

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Company snapshot

600

500

Target Price : | 380.0 400

300

200

100

0 Jul-16 Jul-15 Jul-14 Jul-13 Jul-12 Jul-11 Jul-10 Oct-15 Oct-14 Oct-13 Oct-12 Oct-11 Oct-10 Apr-16 Apr-15 Apr-14 Apr-13 Apr-12 Apr-11 Apr-10 Jan-16 Jan-15 Jan-14 Jan-13 Jan-12 Jan-11 Jan-10

Source: Bloomberg, Company, ICICIdirect.com Research

Key events Date Event Jan-09 Asia Today Ltd, Mauritius, a wholly-owned overseas subsidiary of the company, acquired the balance 40% equity stake in Asia Business Broadcasting (Mauritius) Ltd, a company registered in Mauritius and divested their entire 100% holding in Pan Asia Infrastructure Ltd, Mauritius Jan-10 Company demerges the regional general entertainment channel business undertaking (comprising , , , , Zee Cinemaalu and television channels) of (ZNL) Apr-10 The education business undertaking of the company was demerged from the company and transferred to Zee Learn Ltd on the appointed date Mar-11 Zee Entertainment Studios Ltd, BVI and ZES Mauritius Ltd, Mauritius amalgamated with their holding company ZES Holdings Ltd, Mauritius Jan-12 Company introduces new Bangla movie channel Dec-13 Court approves bonus issue of redemable preference shares in the ratio of 1:21 Jun-14 Launches new channel Zee Zindagi, which serves as a platform for global content Jan-15 Launches new channel & TV

Source: Company, ICICIdirect.com Research

Top 10 Shareholders Shareholding Pattern Rank Name Latest Filing Date % O/S Position (m)n Change (m) (in %) Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 1 31-Mar-15 43.07 413.7 0.0 Promoter 43.07 43.07 43.07 43.07 43.07 2 OppenheimerFunds, Inc. 31-May-15 11.50 110.4 6.1 FII 49.84 50.84 51.91 49.98 47.71 3 Capital World Investors 31-Mar-15 4.93 47.4 -2.3 DII 2.16 1.39 0.97 2.17 3.70 4 The Vanguard Group, Inc. 31-Mar-15 2.53 24.3 -0.1 Others 4.93 4.70 4.05 4.78 5.52 5 Columbia Wanger Asset Management, LLC 31-May-15 1.89 18.2 -5.5 6 Ontario Teachers' Pension Plan Board 31-Mar-15 1.85 17.8 0.0 7 BlackRock Institutional Trust Company, N.A. 30-Jun-15 1.51 14.5 1.8 8 GIC Private Limited 31-Mar-15 1.41 13.6 0.5 9 Vontobel Asset Management, Inc. 30-Apr-15 1.33 12.7 0.0 10 Birla Sun Life Asset Management Company Ltd. 31-May-15 1.16 11.2 5.3

Source: Reuters, ICICIdirect.com Research

Recent Activity Investor name Investor name Buys Sells OppenheimerFunds, Inc. 31.04m 6.11m Columbia Wanger Asset Management, LLC -28.11m -5.53m Birla Sun Life Asset Management Company Ltd. 27.04m 5.32m Capital World Investors -12.84m -2.34m Reliance Capital Asset Management Ltd. 21.43m 4.22m Morgan Stanley Investment Management Inc. (US) -11.32m -1.87m Nordea Funds Oy 15.90m 2.90m Driehaus Capital Management, LLC -8.40m -1.84m Mirae Asset Global Investments (India) Pvt. Ltd. 9.41m 1.86m Morgan Stanley Investment Management (India) Pvt. Ltd. -7.81m -1.66m

Source: Reuters, ICICIdirect.com Research

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Financial summary

Profit and loss statement | Crore Cash flow statement | Crore (Year-end March) FY14 FY15 FY16E FY17E (Year-end March) FY14 FY15 FY16E FY17E Total operating Income 4,421.7 4,883.7 5,521.2 6,247.7 Profit after Tax 891.3 977.5 975.1 1,177.1 Growth (%) 19.5 10.4 13.1 13.2 Add: Depreciation 50.1 67.3 84.1 101.2 Operational Cost 2,068.8 2,139.3 2,537.0 2,832.2 Add: Interest paid 15.8 10.3 9.8 11.2 Employee Expenses 390.5 449.8 554.4 601.0 (Inc)/dec in Current Assets -762.1 -579.8 -452.5 -239.8 Administrative Expenses 758.1 1,040.8 1,148.7 1,224.9 Inc/(dec) in CL and Provisions 131.9 171.7 280.1 96.5 Total Operating Expenditure 3,217.4 3,630.0 4,240.1 4,658.0 Others 0.0 0.0 0.0 0.0 EBITDA 1,204.3 1,253.7 1,281.1 1,589.7 CF from operating activities 327.1 647.0 896.6 1,146.2 Growth (%) 26.2 4.1 2.2 24.1 (Inc)/dec in Investments -37.4 -146.6 -300.0 0.0 Depreciation 50.1 67.3 84.1 101.2 (Inc)/dec in Fixed Assets 536.8 -93.5 -175.0 -175.0 Interest 15.8 10.3 9.8 11.2 Others -712.8 -58.8 -3.0 -2.4 Other Income 180.7 227.8 263.0 276.0 CF from investing activities -213.3 -298.8 -478.0 -177.4 Exceptional Items - - - - Issue/(Buy back) of Equity 0.6 2.2 0.0 0.0 PBT 1,319.0 1,403.9 1,450.2 1,753.3 Issue of Preference Shares 2,016.9 0.0 0.0 0.0

Minority Interest (1.1) (5.7) (3.0) (2.4) Inc/(Dec) in loan funds (0.0) (0.5) - - PAT from Associates 0.2 (3.7) - - Interest paid 15.8 10.3 9.8 11.2 Total Tax 429.1 428.4 478.0 578.6 Others -2,114.3 -188.1 -326.3 -245.6 PAT 891.3 977.5 975.1 1,177.1 CF from financing activities -81.0 -176.1 -316.5 -234.4 Growth (%) 23.9 9.7 -0.2 20.7 Net Cash flow 32.7 172.1 102.2 734.4 EPS (|) 9.3 10.2 10.2 12.3 Opening Cash 531.6 564.4 736.4 838.6

Closing Cash 564.4 736.4 838.6 1,573.0 Source: Company, ICICIdirect.com Research Source: Company, ICICIdirect.com Research

Balance sheet | Crore Key ratios (Year-end March) FY14 FY15 FY16E FY17E (Year-end March) FY14 FY15 FY16E FY17E Liabilities Per share data (|) Equity Capital 96.0 98.3 98.3 98.3 EPS 9.3 10.2 10.2 12.3 Preference Share Capital 2,016.9 2,016.9 2,016.9 2,016.9 Cash EPS 9.8 10.9 11.0 13.3 Reserve and Surplus 2,624.7 3,434.6 4,103.0 5,056.9 BV 49.3 57.8 64.7 74.7

Total Shareholders funds 4,737.7 5,549.8 6,218.2 7,172.1 DPS 2.3 2.6 2.3 2.3

Total Debt 1.7 1.2 1.2 1.2 Cash Per Share 3.0 3.7 4.6 5.7 Others 38.5 29.3 26.3 23.9 Operating Ratios (%) Total Liabilities 4,777.9 5,580.4 6,245.8 7,197.3 EBITDA Margin 27.2 25.7 23.2 25.4 EBIT Margin 26.1 24.3 21.7 23.8 Assets PAT Margin 20.2 20.0 17.7 18.8 Gross Block 693.8 787.3 962.3 1,137.3 Inventory days 96.9 88.8 100.0 90.0 Less: Acc Depreciation 290.1 357.5 441.6 542.8 Debtor days 84.9 79.9 92.0 92.0 Net Block 403.7 429.9 520.7 594.5 Creditor days 41.7 31.4 38.0 38.0 Capital WIP 6.9 6.9 6.9 6.9 Return Ratios (%) Total Fixed Assets 410.6 436.8 527.6 601.4 RoE 27.9 25.3 23.4 24.5 Investments 1,591.4 1,764.2 2,064.2 2,064.2 RoCE 18.8 17.6 15.7 16.4 Inventory 1,173.6 1,187.8 1,512.7 1,540.5 RoIC 35.4 32.4 30.4 35.8 Debtors 1,028.1 1,069.2 1,391.7 1,574.8 Valuation Ratios (x) Loans and Advances 1,109.5 1,587.8 1,380.3 1,405.7 P/E 40.5 36.9 37.0 30.7 Other Current Assets 124.3 170.6 183.2 186.6 EV / EBITDA 29.1 27.5 26.6 21.0

Cash 564.4 736.4 838.6 1,573.0 EV / Net Sales 7.9 7.1 6.2 5.3 Total Current Assets 3,999.9 4,751.8 5,306.4 6,280.6 Market Cap / Sales 8.2 7.4 6.5 5.8 Creditors 505.0 420.4 574.8 650.4 Price to Book Value 7.6 6.5 5.8 5.0 Provisions 364.5 507.3 624.2 635.7 Solvency Ratios Other current liabilities 384.3 497.9 506.6 515.9 Debt/EBITDA 0.0 0.0 0.0 0.0 Total Current Liabilities 1,253.8 1,425.6 1,705.6 1,802.1 Debt / Equity 0.0 0.0 0.0 0.0 Net Current Assets 2,746.1 3,326.2 3,600.8 4,478.5 Current Ratio 4.0 4.3 3.7 3.7 Other non current assets 29.8 53.1 53.1 53.1 Quick Ratio 2.6 3.0 2.5 2.5

Application of Funds 4,777.8 5,580.3 6,245.8 7,197.3 Source: Company, ICICIdirect.com Research Source: Company, ICICIdirect.com Research .

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ICICIdirect.com coverage universe (Media)

CMP M Cap EPS (|) P/E (x) EV/EBITDA (x) RoCE (%) RoE (%) Sector / Company (|) TP(|) Rating (| Cr) FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E DB Corp (DBCORP) 320 410 Buy 5,872 17.2 19.5 23.3 18.6 16.4 13.7 10.3 8.9 7.3 34.2 31.7 31.7 24.6 22.8 22.9 DISH TV (DISHTV) 112 120 Buy 11,852 0.0 1.2 NA NA NA NA 17.6 14.3 NA 10.1 21.2 NA NM NM NA ENIL (ENTNET) 717 683 Hold 3,418 22.2 23.7 27.2 32.3 30.2 26.4 20.6 18.6 14.6 16.7 15.4 16.8 15.7 14.3 14.2 Eros (EROINT) 616 500 Buy 5,696 26.7 34.9 NA 23.1 17.7 NA 17.1 12.8 NA 17.9 20.9 NA 16.7 18.1 NA Cables (HATCAB) 49 54 Hold 4,036 -2.2 -1.9 -1.1 NM NM NM 20.8 16.1 12.8 NM 0.4 2.8 NM NM NM HT Media (HTMED) 91 105 Hold 2,149 7.7 9.2 10.6 11.8 10.0 8.6 7.8 5.7 3.9 6.9 8.5 9.5 9.5 10.0 10.4 Inox Leisure (INOX) 199 210 Buy 1,823 92.7 108.1 131.1 2.1 1.8 1.5 16.5 13.3 9.2 26.7 25.4 21.5 38.3 34.6 30.8 Jagran Prakashan (JAGPRA) 133 145 Buy 4,217 9.7 8.9 NA 13.7 15.0 NA 9.2 7.1 NA 20.6 23.4 NA 27.2 20.1 NA PVR (PVRLIM) 763 780 Buy 3,028 3.1 10.5 19.9 248.2 72.6 38.3 17.9 14.3 11.8 7.9 11.3 13.5 3.1 9.4 15.4 Sun TV (SUNTV) 267 387 Hold 10,538 19.8 23.1 27.7 13.5 11.6 9.7 5.7 5.0 4.1 30.4 32.9 35.0 22.7 24.7 26.5

TV Today (TVTNET) 206 240 Buy 1,223 13.6 15.0 18.4 15.1 13.7 11.1 8.5 7.0 5.2 22.6 22.6 24.0 18.0 17.0 17.9 ZEE Ent. (ZEETEL) 376 380 Hold 36,089 50.9 57.5 65.0 7.4 6.5 5.8 28.1 27.3 22.0 79.9 92.0 92.0 31.4 38.0 38.0 Source: Company, ICICIdirect.com Research

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RATING RATIONALE ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock.

Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction; Buy: >10%/15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more;

Pankaj Pandey Head – Research [email protected]

ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC, Andheri (East) – 400 093 [email protected]

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ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction.

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It is confirmed that Karan Mittal, MBA Sneha Agarwal, MBA, Research Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months.

Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

ICICI Securities or its subsidiaries collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report.

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ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.

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