ZEE’s m-cap likely to jump to Rs 70,000 crore post merger

Zee Entertainment has become a rerating contender following the news of its merger with Sony Pictures. According to Elara Capital analyst Karan Taurani’s back-of-the-envelope calculations, the combined business might have a Rs 65,000-70,000 crore market capitalization.

On the BSE, the stock soared 24.97% to a high of Rs 319.50 on Wednesday. It was valued at almost Rs 30,000 crore on the stock exchange.

On a note, Taurani predicted that Sony’s profit after tax (PAT) would expand at a lower compounded annual growth rate (CAGR) of 10% during FY20-24, translating to Rs 1,460 crore.

ACCORDING TO ELARA, ZEE PAT is expected to be Rs 1,676 crore in FY24, based on a 20% CAGR.