T.V. Today Network downgraded to 'Hold' by MarketsMOJO despite positive first half results

T.V. Today Network, a smallcap company in the TV broadcasting and software industry, has recently been downgraded to a 'Hold' by MarketsMOJO on October 23, 2024. This decision was based on the company's low Debt to Equity ratio, which is currently at 0 times.
Despite this, the company has shown positive results in the first half of 2024, with a growth in Net Profit of 348.34%. Its PAT (HY) has also grown at 207.50%, while NET SALES (HY) has grown at 28.35%. Additionally, T.V. Today Network has a high cash reserve of Rs 249.70 crore.

However, with a ROE of 6.9, the company is currently fairly valued with a 1.5 Price to Book Value. The stock is also trading at a premium compared to its historical valuations. In the past year, the stock has generated a return of -0.77%, while its profits have increased by 48.8%. The PEG ratio of the company is 0.3, indicating a potential undervaluation.

On the other hand, FIIs have increased their holdings in the company this quarter and now hold 3.7% of the company. This could be a positive sign for the company's future performance.

However, T.V. Today Network has shown poor long-term growth, with an annual rate of -10.15% in Operating profit over the last 5 years. The stock is currently in a Mildly Bearish range and the technical trend has deteriorated from Sideways on October 22, 2024. The MACD and Bollinger Band technical factors are also Bearish.

Moreover, the company has consistently underperformed against the benchmark over the last 3 years. Along with generating -0.77% returns in the last year, the stock has also underperformed BSE 500 in each of the last 3 annual periods.

In conclusion, while T.V. Today Network has shown positive results in the first half of 2024, its long-term growth and technical trends are a cause for concern. Investors may want to hold onto their current positions and monitor the company's performance closely before making any further investment decisions.