NCLT's nod to ZEE-Sony India merger will trigger stock re-rating: Analysts

Shares of Zee Entertainment Enterprises soared as much as 20 per cent on the BSE in Thursday's intra-day trade after the National Company Law Tribunal approved the company's merger with Sony India

The National Company Law Tribunal's (NCLT's) approval to Zee Entertainment-Sony India's merger will potentially trigger a re-rating in the Punit Goenka-led company's stock, believe analysts. 

Besides, earnings growth visibility post April-June quarter (Q1FY24) results aid upside in the stock from current levels, they said.

"The NCLT ruling brings a substantial sense of comfort to Zee Entertainment Enterprises (ZEEL), considering the merger's uncertain status over the past couple of years. This juncture is likely to usher in a shift in perception regarding Zee, with attention now directed towards its prospective future growth and the potential utilisation of funds for digital investments