Here's what may trigger re-rating of ZEEL stk post 94% YoY dip in Q1 profit

Emkay Global believes multiple re-rating of the stock will happen along with the changes in Q1 and consistency in balance sheet improvement

Shares of Zee Entertainment Enterprises gained 15 per cent to Rs 200 per share on the BSE on Wednesday despite the broadcaster's net profit plunging 94 per cent in the June quarter of FY21. The company logged a consolidated net profit of Rs 29.28 crore for the quarter ended June, down 94.5 per cent, as against a net profit of Rs 529.76 in the same quarter last year.

ZEEL's total income in the period tumbled 36.6 per cent to Rs 1,338.41 crore, from Rs 2,112.03 crore reported a year ago. Meanwhile, its advertisement revenues dropped 64.5 per cent to Rs