NDTV Upgraded to 'Hold' by MarketsMOJO, But Poor Growth and Negative Results Raise Concerns

New Delhi Television (NDTV) has recently been upgraded to a 'Hold' by MarketsMOJO, a leading stock analysis platform. This upgrade comes as a result of the company's strong ability to service its debt, with a low Debt to EBITDA ratio of 0.80 times. Additionally, the stock is currently in a bullish range, with multiple technical indicators such as MACD, Bollinger Band, KST, and OBV showing a positive trend.
Despite its attractive valuation with a price to book value of 6.7, the stock is trading at a premium compared to its historical average. However, over the past year, the stock has generated negative returns of -3.58%, while its profits have fallen by -87%. This can be attributed to the company's poor long-term growth, with net sales declining at an annual rate of -3.80% over the last 5 years.

In its latest financial results for September 2023, NDTV declared very negative results with a fall in net sales of -9.69%. The company has also declared negative results for the last 3 consecutive quarters, with PBT LESS OI(Q) falling by -85.12% and PAT(Q) falling by -50.8%. Its operating cash flow for the year was also at its lowest at Rs 9.89 crore.

Despite being a smallcap company, domestic mutual funds hold only 0.08% of NDTV's shares. This could indicate that they are not comfortable with the company's current price or its business. Furthermore, NDTV has underperformed the market in the last 1 year, with negative returns of -3.58% compared to the market's 27.06% returns.

In conclusion, while NDTV's strong ability to service its debt and bullish technical indicators make it a 'Hold' according to MarketsMOJO, its poor long-term growth and negative financial results may be a cause for concern for investors.