India | Media & Entertainment 19 August 2020

Company Update/Target price/Rating change

Zee Entertainment
Zee5 revenue remains the silver lining Rating: Buy
Ad in traditional & Zee5 subscriber revenue to drive growth Target Price: INR 250
Upside: 44%
We expect Zee Entertainment (Z IN) to outperform on the ad revenue
CMP: INR 174 (as on 18 August 2020)
front vs the industry in FY21, led by 1) the shift of Zee Anmol from pay
Global Markets Research

to FTA last month, which is likely to drive ad spend back in favor, 2) Key data
strong come-back for ad revenue from H2FY21, given the festival Bloomberg /Reuters Code Z IN /ZEE.BO
season and gradual economic recovery. This has been reiterated by Current /Dil. Shares O/S (mn) 960/960
the June 2020 Pitch Madison Report that states TV and digital will Mkt Cap (INR bn/USD mn) 167/2,238
continue to contribute at least 65% of ad spend in India, with TV Daily Vol (3M NSE Avg) 1,257,992
retaining share at 37%; on the digital advertising front, however, Z Face Value (INR) 1
may underperform vs industry average, as YouTube and Hotstar take 1 USD = INR 74.8
Note: *as on 18 August 2020; Source: Bloomberg
away the lion’s share of incremental spend. We estimate 20% YoY
growth in Zee5 ad revenue in FY21E. On subscription revenue front, Price & Volume
Zee5 remains one of the key drivers, and we believe international
400 125
broadcast subscriptions too (which have declined 17% over the past
300 100
two years) will move in favor of Zee5 subscriptions, given access to TV
75
live content, movie & originals; this shift is also favorable for Z as 200
50
scalability in the digital business would attract better valuation.
100 25
Valuation: upgrade to Buy with a higher TP of INR 250 0 0
Aug-19 Dec-19 Apr-20 Aug-20
We upgrade our rating for Z to Buy from Reduce, and raise our TP to Vol. in mn (RHS)
INR 250 from INR 158 based on a SOTP valuation after factoring in Zee Entertainment Enterprises (LHS)
Source: Bloomberg
numbers of Zee5 (digital business) & strong outlook for the OTT
platform. We have moved to a SOTP-based valuation by valuing the Shareholding (%) Q2FY20 Q3FY20 Q4FY20 Q1FY21

Zee5 business separately based on EV/sales and the broadcasting Promoter 22.4 4.9 4.9 4.8
Institutional Investors 61.8 79.2 79.2 77.0
business on P/E basis. Zee5 reported revenue of INR 949mn in
Other Investors 12.4 12.6 13.0 13.6
Q1FY21; based on this, we assume full-year revenue for the OTT
General Public 3.4 3.3 3.0 4.7
platform at INR 3,400mn (assuming a higher share for subscription
Source: BSE
revenue) for FY21E. Hence, after factoring in ad revenue growth of
Price performance (%) 3M 6M 12M
20% YoY and subscription revenue growth of 10% YoY for the platform
Sensex 28.3 (5.8) 3.2
in FY22E, and EV/sales of 4x, which is almost 30% below Netflix’s and
Zee Entertainment 16.4 (29.2) (49.8)
largely in line with other global media companies that have a sizeable Sun TV Network 21.3 (7.9) (2.3)
presence on digital, we arrive at a valuation of INR 16 for the Zee5 Source: Bloomberg
business. Z’s broadcasting business, excluding revenue and losses for
Zee5 platform, will be valued at 15x one-year forward earnings, which
translates into a fair value of INR 280; however, if we were to exclude
write-offs (inventory, receivables & corporate guarantees), taken at a
future date in a worst case scenario, the fair value for the broadcasting
business will be INR 235. Hence, our TP for consolidated Z, including
the digital business, would be INR 250.

Key Financials
YE Revenue YoY EBITDA EBITDA PAT YoY Fully DEPS RoE RoCE P/E EV/EBITDA
March (INR mn) (%) (INR mn) margin (%) (INR mn) (%) (INR) (%) (%) (x) (x)
FY19 79,339 18.7 25,640 32.3 15,892 7.5 16.5 19.3 26.8 10.5 6.3

FY20 81,299 2.5 16,346 20.1 8,089 (49.1) 8.4 8.8 15.5 20.7 10.0

FY21E 72,361 (11.0) 13,881 19.2 8,325 2.9 8.7 8.5 11.6 20.1 11.0

FY22E 77,552 7.2 18,998 24.5 13,011 56.3 13.5 12.2 14.6 12.8 7.4
Note: pricing as on 18 August 2020; Source: Company, Elara Securities Estimate

Karan Taurani•karan.taurani@elaracapital.com• +91 22 6164 8513

Viren Deshpande•viren.deshpande@elaracapital.com • +91 226164 8565
Elara Securities (India) Private Limited
 Zee Entertainment

Consolidated Financials (YE March)

Income Statement (INR mn) FY19 FY20 FY21E FY22E Revenue & margin growth trend
Net Revenues 79,339 81,299 72,361 77,552 90,000 32.3 35
EBITDA 25,640 16,346 13,881 18,998 24.5 30
80,000
Add:- Non operating Income 2,515 2,836 2,894 3,102 20.1 19.2 25

(INR mn)
OPBIDTA 28,155 19,182 16,775 22,100 70,000 20

(%)
Less :- Depreciation & Amortization 2,347 2,706 2,732 2,997 60,000 15
EBIT 25,807 16,476 14,044 19,103 10
50,000
Less:- Interest Expenses 1,304 1,449 934 939 5
PBT 24,503 15,027 13,110 18,164 40,000 0
FY19 FY20 FY21E FY22E
Less :- Taxes 8,672 4,317 2,796 4,370
Net Revenues EBITDA Margin
Adjusted PAT 15,831 10,710 10,314 13,793
Add/Less: - Extra-ordinaries (61) 2,621 1,989 783 Source: Company, Elara Securities Estimate
Reported PAT 15,892 8,089 8,325 13,011
Balance Sheet (INR mn) FY19 FY20 FY21E FY22E
Share Capital 961 961 961 961 Adjusted profit growth trend
Reserves 88,279 92,479 1,00,503 1,11,522
20,000 100
Minority Interest 143 110 99 82
15,000 56 75
Borrowings 7,429 3,501 3,542 3,542
10,000 50
Deferred Tax (Net) (8,573) (7,879) (192) (192)

(INR mn)

(%)
5,000 3 25
Total Liabilities 88,239 89,172 1,04,913 1,15,914
0 0
Gross Block 17,951 19,993 22,035 24,077 8
Less:- Accumulated Depreciation 9,359 12,065 14,797 17,794 (5,000) (49) (25)

Net Block 8,592 7,928 7,238 6,283 (10,000) (50)

FY19 FY20 FY21E FY22E
Add:- Capital work in progress
Adjusted PAT PAT Growth
Investments 10,289 3,676 3,002 3,002
Net Working Capital 62,244 71,516 88,622 1,00,578 Source: Company, Elara Securities Estimate
Other Assets 7,113 6,051 6,051 6,051
Total Assets 88,239 89,172 1,04,913 1,15,914
Cash Flow Statement (INR mn) FY19 FY20 FY21E FY22E Return ratios
Cash profit adjusted for non-cash items 19,762 15,089 11,991 16,948
30 26.8
Add/Less : Working Capital Changes (9,595) (13,827) (6,942) (14)
25
Other adjustments (2,758) (5,657) (2,907) (3,120)
Operating Cash Flow 7,409 (4,395) 2,143 13,814 20 15.5 14.6
15 19.3 11.7
Less:- Capex (2,599) (2,042) (2,042) (2,042)
Free Cash Flow 4,810 (6,437) 100 11,772 10
12.2
Financing Cash Flow (16,981) (7,885) 8,020 (2,874) 5 8.9 8.5
Investing Cash Flow 5,673 7,406 852 1,060 0
Net change in Cash (3,899) (4,873) 11,015 12,000 FY19 FY20 FY21E FY22E
ROE (%) ROCE (%)
Ratio Analysis FY19 FY20 FY21E FY22E
Income Statement Ratios (%) Source: Company, Elara Securities Estimate
Revenue Growth 18.7 2.5 (11.0) 7.2
EBITDA Growth 23.5 (36.2) (15.1) 36.9
PAT Growth 7.5 (49.1) 2.9 56.3
EBITDA Margin 32.3 20.1 19.2 24.5
Net Margin 20.0 9.9 11.5 16.8
Return & Liquidity Ratios
Net Debt/Equity (x) 0.1 0.0 0.0 0.0
ROE (%) 19.3 8.9 8.5 12.2
ROCE (%) 26.8 15.5 11.7 14.6
Per Share data & Valuation Ratios
Diluted EPS (INR/Share) 16.5 8.4 8.7 13.5
EPS Growth (%) 7.7 (49.1) 2.9 56.3
DPS (INR/Share) 3.5 0.3 0.3 0.5
P/E Ratio (x) 10.5 20.7 20.1 12.8
EV/EBITDA (x) 6.3 10.0 11.0 7.4
EV/Sales (x) 2.0 2.0 2.1 1.8
BVPS (INR) 92.9 97.3 105.6 117.1
Price/Book (x) 1.9 1.8 1.6 1.5
Dividend Yield (%) 2.0 0.2 0.2 0.3
Note: pricing as on 18 August 2020; Source: Company, Elara Securities Estimate

2 Elara Securities (India) Private Limited


Zee5: largest non-sports OTT offering in India
Zee5, which reported its quarterly revenue numbers for
the first time, translates into annual revenue in the range
of INR 3.4-3.6bn. Management clarified this includes only
the Advertising video on Demand (AVOD) &
Subscription video on Demand (SVOD) revenue and has
no syndication revenue.
Our channel checks show SVOD revenue share within
Zee5 is higher than that of AVOD. There are two reasons
for this: 1) better deals for Zee5 with telco partners, and
2) aggressive launch of new content (~20 new shows
every quarter), which has led to increased viewership. A
highly skewed subscriber share means subscription
revenue, which may almost be as large as Hotstar, the
largest India-centric OTT offering backed by sports
content (~70% revenue from sports), this also means
Zee5 may be the largest non-sports OTT offering in India
today in terms of subscription revenue, which is more
sticky in nature vs ad revenue. Further, as per Madison
report, India’s video advertising market is pegged at INR
45bn as on CY19 (video is 30% of total digital
advertising). Off this, YouTube and Hotstar hold almost
two-thirds share whereas the balance is spilt across 35
OTT, which is a long tail; the video advertising market
grew 59% in CY19 and is estimated to grow 45% in
CY20, however, ex-Hotstar and Youtube, other firms in
the OTT ad segment (including Zee5) are estimated to
grow ~20%. However, we believe a higher subscription
share without sports content (the biggest genre for
online consumption) is commendable, in our view, and
hence Zee5 remains to be a big value proposition for the
company. We await further development on the OTT
business in terms of new content investments to monitor
the scalability factor; any further consolidation within
telecom firms, one of the risks, may negatively impact
subscription revenue over the medium term. Further, if
we were to exclude the cost base of Zee5, EBITDA
margin stands at 30% which too is healthy.
Quarterly Performance
EBITDA margins dips by 290bp YoY
Z posted a revenue decline of 34.7% YoY to INR 13.1bn s
our estimates of INR 14.4bn, well below our estimates,
led by a sharp decline in ad revenue amid COVID-19
lockdown by 64.5% YoY as well as weakness in
subscription revenue, which grew a mere 5% YoY,
unable to offset the sharp ad decline.
Exhibit 1: Quarterly performance
(INR mn) Q1FY20 Q1FY20E
Revenue 13,120 14,431
EBITDA 2,199 8,613
Net Profit 292 6,846
EPS (INR) 0.3 7.1
EBITDA Margin 16.8 59.7
Net Margin 2.2 47.4
Source: Company, Elara Securities Estimate
Elara Securities (India) Private Limited
Zee Entertainment
The company reported an EBITDA of INR 2,199mn,
down 67% YoY and an EBITDA margin of 16.8% (ex-
Zee5 margin stood at 30%), down 1610bp YoY, largely
since the fall in revenue was higher than cost savings
(marketing investments in the digital business continue,
leading to a 36% YoY decline in A&P and other expenses,
programming cost down 16%, given no fresh episodes
of existing shows were produced in the first two
Media & Entertainment
months). PAT was down 94% YoY to INR 292mn, largely
on the back of weak operating performance, lower other
income by 75% YoY and higher depreciation by 4% YoY
& effective tax rate during the quarter.
Ad revenue falls sharply; subscribers too subdued
Ad revenue dipped by 64.5% YoY to INR 4.2bn, primarily
due to a weak macroeconomic environment, hit by the
pandemic and despite a sharp increase in viewership
across mediums. Monetization was poor over April-May,
leading to a 66% YoY drop in domestic advertising
revenue. International advertising revenue for the
quarter was at INR 371mn, down 31.9% YoY.
Subscription revenue witnessed growth of a mere 5%
YoY to INR 7.4bn, largely in line with our estimates.
Domestic subscription revenue grew 6.2% YoY on high
base (47% growth in the base quarter), primarily led by
Zee5 subscription revenue. International subscription
revenue was at INR 818mn, down 3.5% YoY during the
quarter. Other operating revenues saw an uptick by 30%
YoY, led by the sale of rights of movies to the OTT
platform (Gunjan Saxena: The Kargil Girl was released
directly on the OTT platform, skipping theatrical release).
Movie sale to Netflix lifts other operating revenue
Zee5 Q1 revenue and operating loss stood at INR 949mn
and INR 1,451mn, respectively, with 39.7mn global
monthly active users Monthly Active Users (MAU), 4.0mn
global daily active users Daily Active Users (DAU) in June,
112 minutes average watch time per viewer per month
in June vs 136 minutes in March, which dropped due to
a lack of original TV content during the lockdown. Zee5
entered the short-video space with beta launch of HiPi,
which would lift growth for the platform. In case of Zee
Studios, after Gunjan Saxena, Khaali Peeli is scheduled
for direct to digital release in this quarter. Zee Music
Company added 6mn subscribers on YouTube, with
60mn subscribers to be the second-most subscribed
music channel in India.
Var (%) Q4FY19 QoQ (%) Q1FY19 YoY (%)
(9.1) 19,511 (32.8) 20,081 (34.7)
(74.5) (2,839) (177.5) 6,598 (66.7)
(95.7) (7,658) (103.8) 5,298 (94.5)
(95.7) (8.0) (103.8) 5.5 (94.5)
(14.5) 32.9
(39.3) 26.4
3
 Zee Entertainment

Exhibit 2: Ad spend on video witnesses fastest growth among the digital ad pie
50 46.4

40 36.1 34.3 34.1

29.3 31.2
26.4 27.8 27.9
30 25.4 23.3 23.8
(INR bn)

22.4
20 16.4
12.5
8.4
10
2.2 3.0 3.4 3.8
0
Search spends Social Video spends Display spends Affiliates + Content +
Influencers Tech +
SMS/OBD
CY16 CY17 CY18 CY19

Source: Madison Media,2020, Elara Securities Research

Exhibit 3: Digital share within the ad pie rising rapidly Exhibit 4: Digital to grow multifold in next 5 years
250 50 700
585.5
200 40 600
500
(INR bn)

150 30
(INR bn) 400
(%)

100 20 300
50 10 200 154.67

100
0 0
CY20P
CY15

CY16

CY17

CY18

CY19

0
CY19 CY25E
Digital Adex size Growth YoY Share of Ad pie Digital Adex size

Source: Dentsu Aegis,2020, Elara Securities Research Source: Dentsu Aegis,2020, Elara Securities Research

Exhibit 5: Display ads comprise an average 21% of ads while online video constitutes 20% for key verticals

100
32 20 24 27 25 27
80 35 38 34
11 0 4
0 12 4
1 10 3
(%)

60 17 39 4
27 17
44 23
30 26
40 28 36
26 11 15
21 13
20 13
14
23 19 21 26 18 23 19 24
13
0
Media & Auto Telecom BFSI Consumer E-commerce FMCG Retail Others
Entertainment Durables
Display Online video Paid search Others incl. classifieds Social media

Source: Madison Media 2020, Elara Securities Research

Exhibit 6: Online video constitutes 22-24% of desktop as well as mobile ad spend

Desktop Social Display, Mobile Social Display,
media, 17% media, 22%
29% 27%

Online Others
Others incl.
incl. video, 22%
classifieds, Online
classifieds, 4%
4% Paid Paid video, 24%
search, search,
27% 23%
Source: Dentsu Aegis 2020, Elara Securities Research Source: Dentsu Aegis2020, Elara Securities Research

4 Elara Securities (India) Private Limited

 Zee Entertainment

Exhibit 7: Zee5 gains traction with rising MAU YoY Exhibit 10: Z continues to invest in original content
100 for Zee5 OTT at average 18-20 shows per quarter
76.4 50
80 39
61.5 63.1 40
(mn)

56.3
60
26

(No.s)
41.3 39.7 30 23
40 16 18 18
20 14 15 15
20 14.2
10

Media & Entertainment

0 0

Q1FY19

Q2FY19

Q3FY19

Q4FY19

Q1FY20

Q2FY20

Q3FY20

Q4FY20

Q1FY21
Q3FY19
Q1FY19

Q2FY19

Q4FY19

Q1FY20

Q4FY20

Q1FY21
Monthly Active Users (MAU) New original shows/Content launched
Note : Company has not published data for Q2 & Q3FY20 Source: Company,
Elara Securities Research Source: Company, Elara Securities Research

Exhibit 8: Zee5 DAU temporarily hit with lack of live Exhibit 11: Zee Music YouTube channel views CAGR
TV content on platform amid COVID-19 lockdown of 40% over the past two years
12 11.4 10
7.8 8
8 7.1 7.1 7.3
10 8.9 5.9
6 4.9 5.3
(bn)
(mn)

8 6.6 4.1
6 4
6
4 2
4
0
2
Q1FY19

Q2FY19

Q3FY19

Q4FY19

Q1FY20

Q2FY20

Q3FY20

Q4FY20

Q1FY21
0
Q1FY21
Q1FY20

Q2FY20

Q3FY20

Q4FY20

Zee Music Youtube views count

Source: Company, Elara Securities Research

Source: Company, Elara Securities Research
Exhibit 12: Zee Studio shows momentum producing
Exhibit 9: Average time spent surges amid the average 2-3 movies per quarter
lockdown and is expected to stabilize at higher levels
25
160 140 20
136 20
140 120
112
120
(No.s)

15
(No.s)

100
80 10 8 7
60 5 3 3
31 31 31 33 2 2 1 2
40
20 0
Q4FY20
Q1FY19

Q2FY19

Q3FY19

Q4FY19

Q1FY20

Q2FY20

Q3FY20

Q1FY21

0
Q2FY19

Q3FY19

Q4FY19

Q1FY20

Q2FY20

Q3FY20

Q4FY20

Q1FY21

Zee Studios Movies (Production+Distribution) launched

Average time spent on the app by user (in mins)
Source: Company, Elara Securities Research
Source: Company, Elara Securities Research

Elara Securities (India) Private Limited 5

 Zee Entertainment

Exhibit 13: Change in estimates

(INR mn) Earlier Current Change (%)
FY21E FY21E FY21E FY21E FY21E FY21E
Revenue 69,751 73,661 72,361 77,552 3.7 5.3
EBITDA 17,438 17,310 13,881 18,998 (20.4) 9.7
Pre-tax profit 16,312 16,070 11,110 17,364 (31.9) 8.0
Net profit 12,223 12,042 8,325 13,011 (31.9) 8.0
EPS (INR) 13 13 9 14 (31.9) 8.0
TP 158 250 58.2
Rating Reduce Buy
Source: Elara Securities Estimate

Exhibit 14: SOTP-based valuation

(INR mn) FY21E FY22E
Zee5 Valuation
Revenue 3,400 3,840
EV/Sales (x) 4
EV 15,360
Net Debt 0
Value of Equity 15,360
No. of Shares (mn) 960.5
Per share value (A) (INR) 16

Valuation of Z (Broadcasting) (INR mn) FY21E FY22E

Revenue 68,961 73,712
EBITDA 21,881 22,998
PAT 16,313 16,993
No. of shares (mn) 960.5
EPS (INR) 17.69
TP for Broadcasting Business based on 15x PER (B) (INR) 265
Combined TP (A+B) (INR) 281
Market Cap based on TP (INR) 27,011
Write-offs 3000
Adjusted Mcap 24,011
Adjusted combines TP (INR) 250
Upside (%) 44
Source: Elara Securities Estimate

Exhibit 15: Peer valuation of listed global OTT firms … Add Zee Entertainment
Company Ticker Cur Adj Mkt cap EV P/E (x) EV/Revenue (x)
(INR mn) (INR mn) FY21 FY22 FY21 FY22
Netflix NFLX US Equity 2,17,174 227,729 74.56 51.81 9.15 7.79
Viacom CBS VIAC US Equity 16,839 37,111 6.92 5.92 1.43 1.34
Disney DIS US Equity 2,33,617 292,574 100.76 49.27 4.48 4.05
Discovery DISCA US Equity 15,380 30,913 7.43 6.63 2.98 2.78
Fox Corp FOXA US Equity 15,604 19,801 13.05 11.30 1.65 1.59
Average EV/Sales 3.5x
Note: pricing as on XX Month Year: Source: Bloomberg Consensus estimates for Not Rated Companies, Elara Securities Estimate

6 Elara Securities (India) Private Limited

 Zee Entertainment

Coverage History
700

600

500
1
400

Media & Entertainment

3 6
300 2 5
4 9
200
7
100 8

0
Apr-18

Jun-18

Apr-19

Jun-19

Apr-20

Jun-20
May-18

Dec-18

May-19

Dec-19

May-20
Aug-18

Aug-19

Aug-20
Sep-18

Sep-19
Feb-18

Nov-18

Nov-19
Jul-18

Feb-19

Jul-19

Feb-20

Jul-20
Jan-18

Mar-18

Oct-18

Jan-19

Mar-19

Oct-19

Jan-20

Mar-20
Not Covered Covered

Date Rating Target Price Closing Price

1 15-Jan-2019 Accumulate INR 535 INR 457
2 25-Jan-2019 Buy INR 490 INR 318
3 27-May-2019 Accumulate INR 410 INR 361
4 11-Oct-2019 Accumulate INR 290 INR 243
5 17-Oct-2019 Accumulate INR 310 INR 265
6 22-Jan-2020 Accumulate INR 350 INR 300
7 24-Apr-2020 Buy INR 270 INR 145
8 7-Aug-2020 Reduce INR 158 INR 150
9 18-Aug-2020 Buy INR 250 INR 174

Guide to Research Rating

BUY Absolute Return >+20%
ACCUMULATE Absolute Return +5% to +20%
REDUCE Absolute Return -5% to +5%
SELL Absolute Return < -5%

Elara Securities (India) Private Limited 7

 Elara Securities (India) Private Limited

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Limited [NSE], in the Capital Market Segment of BSE Limited [BSE] and a Depository Participant registered with Central Depository Services (India) Limited [CDSL].

Elara Securities (India) Private Limited’s business, amongst other things, is to undertake all associated activities relating to its broking business.

The activities of Elara Securities (India) Private Limited were neither suspended nor has it defaulted with any stock exchange authority with whom it is registered in
last five years. However, during the routine course of inspection and based on observations, the exchanges have issued advise letters or levied minor penalties on
Elara Securities (India) Private Limited for minor operational deviations in certain cases. Elara Securities (India) Private Limited has not been debarred from doing
business by any Stock Exchange / SEBI or any other authorities; nor has the certificate of registration been cancelled by SEBI at any point of time.

Elara Securities (India) Private Limited offers research services primarily to institutional investors and their employees, directors, fund managers, advisors who are
registered or proposed to be registered.

Details of Associates of Elara Securities (India) Private Limited are available on group company website www.elaracapital.com

Elara Securities (India) Private Limited is maintaining arms-length relationship with its associate entities.

Research Analyst or his/her relative(s) may have financial interest in the subject company. Elara Securities (India) Private Limited does not have any financial
interest in the subject company, whereas its associate entities may have financial interest. Research Analyst or his/her relative does not have actual/beneficial
ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of Research Report. Elara
Securities (India) Private Limited does not have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately
preceding the date of publication of Research Report. Associate entities of Elara Securities (India) Private Limited may have actual/beneficial ownership of 1% or
more securities of the subject company at the end of the month immediately preceding the date of publication of Research Report. Research Analyst or his/her
relative or Elara Securities (India) Private Limited or its associate entities does not have any other material conflict of interest at the time of publication of the
Research Report.

Research Analyst or his/her relative(s) has not served as an officer, director or employee of the subject company.

Research analyst or Elara Securities (India) Private Limited have not received any compensation from the subject company in the past twelve months. Associate
entities of Elara Securities (India) Private Limited may have received compensation from the subject company in the past twelve months. Research analyst or Elara
Securities (India) Private Limited or its associate entities have not managed or co-managed public offering of securities for the subject company in the past twelve
months. Research analyst or Elara Securities (India) Private Limited or its associates have not received any compensation for investment banking or merchant
banking or brokerage services from the subject company in the past twelve months. Research analyst or Elara Securities (India) Private Limited or its associate
entities may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject
company or third party in connection with the Research Report in the past twelve months.

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 Elara Securities (India) Private Limited

Disclaimer for non U.S. Investors

The information contained in this note is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although
we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will
continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the
particular situation.

Global Markets Research

Disclosures for U.S. Investors
The research analyst did not receive compensation from Zee Entertainment Limited.

Elara Capital Inc.’s affiliate did not manage an offering for Zee Entertainment Limited.

Elara Capital Inc.’s affiliate did not receive compensation from Zee Entertainment Limited in the last 12 months.

Elara Capital Inc.’s affiliate does not expect to receive compensation from Zee Entertainment Limited in the next 3 months.

Disclaimer for U.S. Investors

This material is based upon information that we consider to be reliable, but Elara Capital Inc. does not warrant its completeness, accuracy or adequacy and it
should not be relied upon as such.

This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or
strategies mentioned herein may not be suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice,
and are only correct as of the stated date of their issue. Prices, values or income from any securities or investments mentioned in this report may fall against the
interests of the investor and the investor may get back less than the amount invested. Where an investment is described as being likely to yield income, please
note that the amount of income that the investor will receive from such an investment may fluctuate. Where an investment or security is denominated in a
different currency to the investor’s currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that
investment to the investor. The information contained in this report does not constitute advice on the tax consequences of making any particular investment
decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation
of particular securities, financial instruments or strategies to you. Before acting on any recommendation in this material, you should consider whether it is
suitable for your particular circumstances and, if necessary, seek professional advice.

Certain statements in this report, including any financial projections, may constitute “forward-looking statements.” These “forward-looking statements” are not
guarantees of future performance and are based on numerous current assumptions that are subject to significant uncertainties and contingencies. Actual
future performance could differ materially from these “forward-looking statements” and financial information.

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 Elara Securities (India) Private Limited

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Ravi Sundar Muthukrishnan PhD Director & Head of Research ravi.muthukrishnan@elaracapital.com +91 22 6164 8572
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Abhishek Shindadkar Analyst IT Services, Internet, Telecom abhishek.shindadkar@elaracapital.com +91 22 6164 8502
Akhil Parekh Analyst Consumer Discretionary, Mid Cap, Small Cap akhil.parekh@elaracapital.com +91 22 6164 8519
Ankita Shah Analyst Infrastructure, Ports & Logistics ankita.shah@elaracapital.com +91 22 6164 8516
Biju Samuel Analyst Quantitative & Alternate Strategy biju.samuel@elaracapital.com +91 22 6164 8505
Gagan Dixit Analyst Aviation, Oil & Gas gagan.dixit@elaracapital.com +91 22 6164 8504
Garima Kapoor Economist garima.kapoor@elaracapital.com +91 22 6164 8527
Harshit Kapadia Analyst Capital Goods, Consumer Electronics harshit.kapadia@elaracapital.com +91 22 6164 8542
Jay Kale, CFA Analyst Auto & Auto Ancillaries jay.kale@elaracapital.com +91 22 6164 8507
Karan Taurani Analyst Alcoholic Beverages, Media & Entertainment karan.taurani@elaracapital.com +91 22 6164 8513
Mahrukh Adajania Analyst Banking & Financials mahrukh.adajania@elaracapital.com +91 22 6164 8500
Param Desai Analyst Healthcare, Pharmaceuticals, Real Estate param.desai@elaracapital.com +91 22 6164 8528
Pradeep Kumar Kesavan, CFA Analyst Strategy pradeep.kesavan@elaracapital.com +91 22 6164 8541
Pratik Tholiya, CFA Analyst Agrochemicals, Travel & Hospitality, Sugar pratik.tholiya@elaracapital.com +91 22 6164 8518
Ravi Sodah Analyst Cement, Building Materials, Metals & Mining ravi.sodah@elaracapital.com +91 22 6164 8517
Ritika Dua Analyst Diversified Financials, Insurance ritika.dua@elaracapital.com +91 22 6164 8526
Rupesh Sankhe Analyst Utilities, Renewables, Capital Goods rupesh.sankhe@elaracapital.com +91 22 6164 8581
Sagarika Mukherjee Analyst Dairy, FMCG, Paints sagarika.mukherjee@elaracapital.com +91 22 6164 8594
Saurabh Mitra Sr. Associate Cement, Building Materials, Metals & Mining saurabh.mitra@elaracapital.com +91 22 6164 8546
Ankeet Pandya Associate Healthcare, Pharmaceuticals, Real Estate ankeet.pandya@elaracapital.com +91 22 6164 8535
Anushka Chhajed Associate Strategy anushka.chhajed@elaracapital.com +91 22 6164 8536
Chintan Shah Associate Banking & Financials chintan.shah@elaracapital.com +91 22 6164 8521
Jatan Gogri Associate Economics jatan.gogri@elaracapital.com +91 22 6164 8591
Pratik Poddar Associate Diversified Financials, Insurance pratik.poddar@elaracapital.com +91 22 6164 8506
Rachael Alva Associate Aviation, Oil & Gas rachael.alva@elaracapital.com +91 22 6164 8525
Rohit Harlikar Associate Dairy, FMCG, Paints rohit.harlikar@elaracapital.com +91 22 6164 8562
Tushar Wavhal Associate IT Services, Internet, Telecom tushar.wavhal@elaracapital.com +91 22 6164 8500
Vijay Gyanchandani Associate Auto & Auto Ancillaries vijay.gyanchandani@elaracapital.com +91 22 6164 8511
Viren Deshpande Associate Alcoholic Beverages, Media & Entertainment viren.deshpande@elaracapital.com +91 22 6164 8565
Vinayak Patil Database vinayak.patil@elaracapital.com +91 22 6164 8510
Priyanka Sheth Editor priyanka.sheth@elaracapital.com +91 22 6164 8568
Gurunath Parab Production gurunath.parab@elaracapital.com +91 22 6164 8515
Jinesh Bhansali Production jinesh.bhansali@elaracapital.com +91 22 6164 8537

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Elara Securities (India) Private Limited

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Website: www.elaracapital.com Investor Grievance Email ID: investor.grievances@elaracapital.com

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