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Zee is India’s largest listed media company. The covid-19 pandemic has impacted advertising revenues, but subscription income has shot up particularly from its OTT offering – Zee5. However, heavy investment in content has dented revenues. Long term prospects of OTT players is bright due to increased individual consuption. We have an over weight rating on Zee due to good long term growth prospects and reasonable valuation. Promoter stake sale to reduce their debt has removed a major overhang, however related party transactions and bad debts are a new area of concern – 24-07-2020 Price: 151.65 Rating: Over Weight Recommendation: Buy

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