Zee Entertainment extends gain, stock surges 75% in 2012

The stock gained 16% after the company announced the launch of India's first 24-hour Bengali movie channel, Zee Bangla Cinema

Zee Entertainment Enterprises has soared 7% to Rs 208 its highest level since October 2000, on the Bombay Stock Exchange. The stock opened at Rs 197 and has seen a combined 4.67 million shares changing hands on the counter so far on both the exchanges.

The company, engaged in broadcasting and cable television business, has rallied 75% so far in 2012 as compared to 23% rise in benchmark Sensex. The stock has gained 16% in past ten trading sessions after the company announced the launch of India’s first 24-hour Bengali movie channel, Zee Bangla Cinema.

Analyst at HDFC Securities expect surge Zee's subscription revenues due to the new digitization reforms and higher than expected ad-revenue growth. Digitisation, declining sports losses, increased movie acquisitions will drive EBIT margins by going forward, analyst said in its report.