Raj Television Network Ltd is Rated Strong Sell

Current Rating and Its Significance

The Strong Sell rating assigned to Raj Television Network Ltd indicates a cautious stance for investors. This rating suggests that the stock is expected to underperform relative to the broader market and peers in the Media & Entertainment sector. Investors should carefully consider the risks before allocating capital to this microcap stock. The rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals.

Quality Assessment

As of 06 February 2026, the company’s quality grade remains below average. This is reflected in its weak long-term fundamental strength, with an average Return on Capital Employed (ROCE) of just 2.54%. ROCE is a critical measure of how efficiently a company generates profits from its capital base, and a figure this low signals suboptimal utilisation of resources. Furthermore, the company’s net sales have grown at a modest annual rate of 12.30% over the past five years, while operating profit has increased at 10.12% annually. These growth rates, although positive, are not robust enough to inspire confidence in sustained expansion, especially given the company’s microcap status and competitive pressures in the media sector.

Valuation Considerations

Raj Television Network Ltd is currently rated as risky from a valuation perspective. The stock trades at valuations that are unfavourable compared to its historical averages, compounded by negative EBITDA figures. Despite a notable 77.3% rise in profits over the past year, the stock price has declined sharply, delivering a negative return of 54.81% over the same period. This divergence suggests that the market perceives significant risks or uncertainties surrounding the company’s future earnings potential. Investors should be wary of the stock’s valuation metrics, which imply a higher risk premium and limited upside in the near term.

Financial Trend and Stability

The financial trend for Raj Television Network Ltd is negative, highlighting ongoing challenges. The company reported negative operating cash flow for the fiscal year, with the lowest operating cash flow recorded at ₹5.17 crores outflow. Additionally, the latest six-month profit after tax (PAT) stands at a modest ₹0.52 crore, having declined by 47.31%. Cash and cash equivalents are critically low at ₹0.17 crore, indicating tight liquidity conditions. The company’s ability to service its debt is also weak, with an average EBIT to interest ratio of just 0.07, signalling potential difficulties in meeting interest obligations. These financial indicators collectively point to a fragile financial position that warrants caution.

Technical Analysis

From a technical standpoint, the stock is mildly bearish. While there have been short-term gains such as a 7.27% increase over the past week and a 3.46% rise over three months, these have been offset by declines over longer periods, including a 6.09% drop over six months and a 54.81% fall over one year. The stock’s performance has significantly underperformed the broader market benchmark, with the BSE500 index delivering a 6.93% return over the last year. This underperformance reflects weak investor sentiment and technical momentum, reinforcing the cautious rating.

Market Performance and Investor Implications

As of 06 February 2026, Raj Television Network Ltd’s stock price has shown considerable volatility and underperformance. The one-year return of -54.81% starkly contrasts with the positive returns of the broader market, underscoring the stock’s elevated risk profile. For investors, the current Strong Sell rating serves as a warning signal to avoid or reduce exposure to this stock until there is clear evidence of financial turnaround and improved operational metrics.

Summary of Key Metrics as of 06 February 2026

The company’s microcap status and sector positioning in Media & Entertainment add layers of complexity to its investment profile. The Mojo Score currently stands at 9.0, reflecting the Strong Sell grade, a significant drop from the previous Sell rating with a score of 33. This change was effected on 15 April 2025, but the current data confirms the persistence of underlying challenges.

Stock returns over various time frames illustrate the volatility and downward trend: no change on the day, a 7.27% gain over one week, a slight 1.67% decline over one month, a 3.46% gain over three months, a 6.09% loss over six months, a 3.95% decline year-to-date, and a steep 54.81% loss over one year. These figures highlight the stock’s struggle to maintain momentum and investor confidence.

What This Means for Investors

Investors should interpret the Strong Sell rating as a signal to exercise caution. The combination of weak fundamentals, risky valuation, negative financial trends, and bearish technical indicators suggests that Raj Television Network Ltd is currently not a favourable investment. Those holding the stock may consider reassessing their positions, while prospective investors should await clearer signs of recovery before committing capital.

In summary, the rating reflects a comprehensive analysis of the company’s current financial health and market performance. It underscores the importance of monitoring key metrics such as ROCE, cash flow, profitability, and market trends to make informed investment decisions.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →