Raj Television Network Ltd is Rated Strong Sell

Current Rating Overview

MarketsMOJO’s Strong Sell rating for Raj Television Network Ltd indicates a cautious stance for investors, signalling significant concerns across multiple evaluation parameters. The rating was revised on 15 April 2025, reflecting a marked deterioration in the company’s overall outlook. The Mojo Score currently stands at 9.0, a steep decline from the previous score of 33, underscoring the heightened risk associated with the stock.

Here’s How the Stock Looks Today

As of 24 December 2025, Raj Television Network Ltd continues to face challenges that justify its Strong Sell rating. The company’s financial health, operational performance, valuation, and technical indicators collectively paint a picture of a stock that is struggling to deliver value to shareholders.

Quality Assessment

The quality grade for Raj Television Network Ltd is below average. The company’s long-term fundamental strength remains weak, with an average Return on Capital Employed (ROCE) of just 2.54%. This figure is considerably low, indicating that the company is generating limited returns on the capital invested in its operations. Over the past five years, net sales have grown at an annual rate of 12.30%, while operating profit has increased by 10.12%. Although these growth rates are positive, they are modest and insufficient to offset the company’s broader financial weaknesses.

Valuation Considerations

The valuation grade is classified as risky. The stock is trading at levels that suggest elevated risk compared to its historical averages. Despite the company’s profits rising by 77.3% over the past year, the stock price has declined by 49.59% during the same period. This divergence indicates that the market is discounting the stock heavily, likely due to concerns about sustainability and future growth prospects. Investors should be wary of the current valuation, which reflects uncertainty and potential downside risk.

Financial Trend

The financial grade is negative, reflecting deteriorating operational metrics and cash flow concerns. The latest quarterly data shows net sales at ₹15.76 crores, a sharp decline of 46.1% compared to the previous four-quarter average. Operating cash flow for the year is deeply negative at ₹-5.17 crores, signalling liquidity pressures. Profit after tax (PAT) for the latest six months stands at ₹0.52 crores, having contracted by 47.31%. Additionally, the company’s ability to service debt is weak, with an average EBIT to interest ratio of just 0.07, indicating that earnings before interest and tax barely cover interest expenses. These factors collectively highlight a fragile financial position that undermines investor confidence.

Technical Analysis

The technical grade is mildly bearish. The stock has underperformed key benchmarks such as the BSE500 over the last one year, three years, and three months. Recent price movements show a 1-day decline of 1.13% and a 1-week drop of 1.85%, despite a modest 1-month gain of 0.92% and a 3-month increase of 2.02%. However, the six-month return is negative at -11.97%, and the year-to-date return is deeply negative at -47.70%. These trends suggest that the stock is facing selling pressure and lacks strong momentum, which may deter short-term traders and long-term investors alike.

Implications for Investors

For investors, the Strong Sell rating signals caution. The combination of weak fundamentals, risky valuation, negative financial trends, and bearish technical signals suggests that Raj Television Network Ltd is currently not a favourable investment. The company’s microcap status and sector challenges in Media & Entertainment further compound the risks. Investors should carefully consider these factors before initiating or maintaining positions in the stock, as the outlook remains uncertain and downside risks prevail.

Summary

In summary, Raj Television Network Ltd’s Strong Sell rating by MarketsMOJO reflects a comprehensive assessment of its current challenges. The company’s below-average quality, risky valuation, negative financial trends, and bearish technical outlook combine to create a high-risk profile. While some growth in profits has been noted, it has not translated into positive stock performance or improved fundamentals. Investors should approach this stock with caution and consider alternative opportunities with stronger financial health and market momentum.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today