Media major Zee Telefilms witnessed sustained selling from institutions on rumours that the company may soon issue a profit warning. On the Bombay Stock Exchange, the stock tumbled to a low of Rs 85.95 in intraday trades but settled at Rs 86.65, down 6.48 per cent over Thursday's close of Rs 92.65. Around 48.59 lakh shares were traded on the counter through 26,465 trades.
On the National Stock Exchange, 72.26 lakh shares traded on the counter through 43,090 trades. The stock has slipped 23.3 per cent from Rs 113 on September 2 to its current levels.
Dealers at an institutional brokerage house said, "A foreign-fund was rumoured to be a seller on the market." Also, there were rumours that the company may issue a profit warning due to the poor advertisement revenues generated by the company.
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As per market talk, advertisement revenues are on the downswing due to the poor reception got for Zee's serials and programmes. The second quarter results of the company, in any case, are expected to be disappointing.
Recently, a foreign brokerage house had slashed its earnings estimate and price target for Zee Telefilms due to the continued sluggishness in the advertising market and the dominance of the company's main rivals on television rating points charts.
The advertising revenue growth forecasts for Zee was reduced to 2.6% for the current fiscal. However, the brokerage still maintained its 'buy' recommendation on the Zee stock.
Zee Telefilms' revenues on a standalone basis have been highly impacted by sluggish advertisement revenues. A rise in subscription revenues from overseas, though, has helped Zee Telefilms.