Rakesh Jhunjhunwala Portfolio: Big Bull Rakesh Jhunjhunwala has earned a mark-to-market profit of 50 crores in eight days by investing in the shares of Zee Entertainment Limited. Last week, Rakesh Jhunjhunwala’s Rare Enterprises bought 50 lakh shares at Rs 220.44 per share amid the ongoing controversy in the board of Zee Entertainment. On Wednesday, its shares rose 25 per cent to Rs 321 on the news of its merger with Sony Pictures Networks India. With this increase, Jhunjhunwala earned Rs 100 per share. In this way, according to the holding of 50 lakh shares, his profit became Rs 50 crore.
Zee shares may strengthen but investors have to be cautious
Both will benefit from the merger of Zee Entertainment and Sony Pictures. Sony will benefit from Zee’s strengths in terms of content production and deep customer connection. On the other hand, Zee will benefit from Sony’s success in the entertainment segment. Likita Chhepa, Senior Research Analyst, CapitalVia Global Research, says that this will increase the value of shareholders manifold. This stock is likely to gain a lot in the long term. However, Yash Gupta, Equity Research Analyst at Angel Broking, has also asked investors to be cautious about Zee shares. He says that this stock has rallied 78 percent for the last one year. Last month it was trading at Rs 170 level. At present, Zee has not disclosed its valuation. Ashwin Patil, Senior Research Analyst, LKP Securities says that analysts expect ZEEL to be re-rated. It is currently trading at 23x/19x the earnings of 23x/19x FY22/FY23.
These companies also made big purchases of Zee’s shares
Last week, apart from Rakesh Jhunjhunwala’s Rare Enterprises, BofA Securities Europe SA had bought 48.65 lakh shares of Zee Entertainment for Rs 236.2. On the other hand, ump Trading Financial India bought 1.02 crore shares at Rs 236.50 per share. However, later it sold these shares for Rs 236.66.
(Article: Surabi Jain)
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