This large-cap has a trillion dollar investor; Macquarie says buy

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Updated: October 9, 2017 11:55:30 AM

Macquarie, the global investment banking firm is bullish on Zee Entertainment Enterprises, a large-cap stock in which Vanguard Fund is a prominent investor! As on 30th June 2017, Vanguard Fund had $4.4 trillion assets under management.

bankruptcy issue, bank debt issue, bad loans issue, total bad loansVanguard International Fund held 1.45% stake in Zee Entertainment Enterprises as on 30th June 2017. (Image: PTI)

Macquarie, the global investment banking firm is bullish on Zee Entertainment Enterprises, a large-cap stock in which Vanguard Fund is a prominent investor! As on 30th June 2017, Vanguard Fund had $4.4 trillion assets under management. Notably, Vanguard International Growth Fund held more than 1.45% stake in Zee Entertainment Enterprises at the end of Apr-Jun quarter. As at the end of March, Vanguard International Growth Fund had 1.39% implying an increase in stake of 0.06% in the Apr-Jun quarter.

Zee Entertainment shares were trading at Rs 527.5, up by more than 1.1% since the previous close. Macquarie has a target price of Rs 615, implying an upside of more than 15% from the current market prices. Macquarie sees  a 21.4% CAGR in the Earnings Per Share of Zee Entertainment over FY 17-20. Due to GST related disruption, Macquarie anticipates mid-single digit growth in Q2 for Zee Entertainment Enterprises. Shares of Zee Entertainment have lagged the BSE Sensex in the year so far with returns of 15% since January. In comparison, Sensex is up by more than 19% since January.

View live stock prices: Zee Entertainment; TCS; Infosys; L&T

The two IT majors TCS and Infosys are on the radar of Sandip Bhatia, Head – India Equities, Macquarie Capital Securities. In an interview to ET Now in August, the expert said that the investors should look to buying these stocks from the IT space on dips. The year hasn’t been great for the these two majors, as both of them have underperformed the equity benchmark Sensex by a huge margin.  While TCS has returned a paltry 3.4% in the year, Infosys has given negative returns of 8.85% since January this year. According to Bhatia, the markets are still offering buying opportunities at every dip.

From the Infra space, Sandip Bhatia is betting on the major technology, engineering, construction and manufacturing conglomerate — Larsen and Toubro. The stock has outperformed the benchmark in the year with returns of more than 26%. Shares of L&T were trading at Rs 1,149, up by more than 0.7% since the previous close.

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