T.V. Today Network Downgraded to 'Sell' by MarketsMOJO on Multiple Factors

T.V. Today Network, a smallcap company in the TV broadcasting and software industry, has recently been downgraded to a 'Sell' by MarketsMOJO on 2024-10-28. This decision was based on various factors, including poor long-term growth, technical trends, and expensive valuation.
Over the last 5 years, the company's operating profit has only grown at an annual rate of -10.15%, indicating a lack of long-term growth potential. Additionally, the stock is currently in a Mildly Bearish range, with a deteriorating technical trend since 22-Oct-24, resulting in -9.02% returns.

Furthermore, multiple technical indicators, such as MACD, Bollinger Band, and KST, suggest a bearish outlook for the stock. With a ROE of 6.9, the stock is also trading at a premium compared to its historical valuations, making it an expensive investment.

Although the company's profits have risen by 48.8% in the past year, the stock has generated a negative return of -10.89%, resulting in a PEG ratio of 0.2. However, the company does offer a high dividend yield of 4.4% at its current price.

Moreover, T.V. Today Network has consistently underperformed against the benchmark BSE 500 index in the last 3 years, further supporting the 'Sell' recommendation.

On the positive side, the company has a low Debt to Equity ratio and has shown significant growth in PBT and PAT in the last quarter. It also has a high cash and cash equivalents balance of Rs 249.70 cr.

However, despite these factors, the recent increase in FIIs' holdings, who now hold 3.7% of the company, may not be enough to outweigh the overall negative outlook for T.V. Today Network. Investors are advised to exercise caution and consider all factors before making any investment decisions.