ZEEL: In Uncharted Territory, But 455-465 Zone May Provide Good Hurdle Despite Encouraging Ad Revenue

Trading Idea: ZEEL

CMP: 448

Sell either below 455-465 or on rise around 485-500;

TGT: 438*-412-390*-370-345*-329-310*-297 (1-3/6M)

TSL> 510

Note: Consecutive closing (3 days) above 510 for any reason, ZEEL may further rally up to 530-550 in the near to long term (alternative bullish case scenario).

Sudden unexpected jump in ad revenue may be linked to seasonal factor (like state election ad spending and proximity to the current regime) and may not show such incremental growth after 2019. 

For ZEEL: (Consolidated Basis)

Q4FY16 TTM EPS: 9.17 (FY:16/Actual)

Projected FWD EPS: 10.35-11.65-13.15 (FY:17-19/Estimated)

Average PE: 35

As par BG metrics & current market parameters:

Present median value may be around: 360 (FY:16/TTM)

Projected fair value might be around: 385-405-430 (FY:17-19/FWD)

ZEEL	EPS(TTM)	BV(Act)	P/E(AVG)	Low	High	Median	200-DEMA	10-DEMA
Q4FY16/TTM	9.17	47.45	35	354.06	364.52	359.29	390.59	414
FY17/FWD	10.35	54.75	35	376.15	387.26	381.71	390.59	414
FY18/FWD	11.65	62.95	35	399.08	410.86	404.97	390.59	414
FY19/FWD	13.15	72.25	35	423.99	436.51	430.25	390.59	414

Analytical Charts: