5 Reasons Why Z Entertainment Shares Are a Smart Investment
Investing in the stock market is a great way to grow your wealth over time. While the market can be volatile, investing in individual stocks that have a proven track record can provide strong returns. One company that has recently caught the attention of investors is Z Entertainment, and for good reason. Here are five reasons why Z Entertainment shares are a smart investment.
1. Strong Revenue Growth
Z Entertainment operates in the media and entertainment industry in India, and has seen strong revenue growth in recent years. In the fiscal year 2019-20, the company recorded a revenue of Rs. 8,242 crore, which is a growth of 18% from the previous year. This growth is attributed to the company’s strong content portfolio, which includes popular TV shows, movies, and digital content. With a focus on producing quality content, Z Entertainment is well-positioned to continue its revenue growth in the future.
2. Diversified Portfolio
In addition to its strong content portfolio, Z Entertainment has diversified its business in recent years. The company has expanded its offerings to include live events, music, and international operations. This diversification not only provides the company with new revenue streams, but also reduces its dependence on any one area of business. A diversified portfolio can help reduce risk for investors, making Z Entertainment a more attractive investment option.
3. Strong Digital Presence
In today’s digital age, having a strong online presence is essential for businesses. Z Entertainment has recognized this and has made significant investments in its digital offerings. The company’s digital platform ZEE5 has seen strong growth in recent years, with over 56.3 million monthly active users as of December 2020. This growth is attributed to the platform’s diverse content library and user-friendly interface. With the increasing trend of consumers preferring to consume content online, Z Entertainment’s strong digital presence is a major advantage.
4. Experienced Management Team
The success of any company is largely dependent on its management team. Z Entertainment has a strong and experienced management team in place. The company is led by Dr. Subhash Chandra, who has over four decades of experience in the media and entertainment industry. The management team has a proven track record of driving revenue growth and delivering shareholder value. With a strong leadership team in place, investors can have confidence in the future of Z Entertainment.
5. Attractive Valuation
Finally, Z Entertainment’s current valuation makes it an attractive investment proposition. As of March 2021, the company’s stock is trading at a price-to-earnings ratio of just 14.4, which is lower than its historical average. This suggests that the stock may be undervalued, presenting an opportunity for investors to buy in at a lower price. Additionally, the company pays a dividend, providing investors with a regular income stream.
In conclusion, Z Entertainment shares are a smart investment option for several reasons. The company’s strong revenue growth, diversified portfolio, strong digital presence, experienced management team, and attractive valuation make it an attractive investment opportunity. As with any investment, it’s important to do your own research and consider your own investment goals and risk tolerance before investing.
