The market share loss that they are having is one worry but from a valuation perspective, Zee looks fine to us, says Abhimanyu Sofat, VP-Research, IIFL. Excerpts from an interview with ETNOW.
What did you make of Zee’s performance? Is it still a worthy buy?
If you look at the numbers closely, clearly the advertising revenue is coming down. The new TRAI regulations that have come in could have a negative impact on the company. Somehow the momentum that they were getting in certain markets like Tamil Nadu is not there any more. So, that is one concern. Yesterday, what the management said in the conference call was that they are coming up with policy changes with regards to their treasury management. Most members of the new board of directors have a tech background. From a price point perspective, Zee could look decent at this particular price point. The market share loss that they are having is one worry but from a valuation perspective, it looks fine to us.
AU Small Finance Bank has delivered and it is a bank which has gone against the grain at a time when Bandhan and Ujjivan have suffered at 6.5 times book. Is AU Small Finance Bank worth a buy or a hold?
There is some amount of stress in the economy and at this particular price point, buying AU Small Finance would not be advisable. Yes, this particular quarter’s numbers have been pretty good and it is a great management. Now they are getting into vehicle finance business also but considering the current macro, this price is something that one should look at before buying the stock.