Volume Shocker: Zee Entertainment

Zee Entertainment Enterprises has surged 6.4% to Rs 139 in noon trades on back of heavy volumes in the counter. As many as a combined 3.23 million shares have changed hands so far against an average 1.53 million shares that were traded daily in past ten trading days on the NSE and BSE.

The stock is outperforming the market by rising almost 12% since the announcement of Q4 results on May 21, compared with a 2.3% gain in the benchmark indices.

The company has reported a robust 30% year-on-year growth in total subscription revenues at Rs 400 crore, above analyst estimate of Rs 330 crore during the fourth quarter ended March 2012 (Q4FY12). Operating profit margin however were down at 18.4% against 28.4% in 4QFY11 mainly due to higher content, marketing cost and forex losses.