Current Rating and Its Significance
The Strong Sell rating assigned to T.V. Today Network Ltd indicates a cautious stance for investors, signalling that the stock is expected to underperform relative to the broader market and its peers. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the stock’s risk and return profile, guiding investors on the prudence of holding or divesting their positions.
Quality Assessment
As of 03 February 2026, the company’s quality grade is assessed as average. This reflects a middling operational and management efficiency relative to industry standards. While the company maintains a presence in the media and entertainment sector, its long-term growth prospects have been disappointing. Operating profit has declined at an annualised rate of -155.13% over the past five years, signalling significant challenges in sustaining profitability. Such a trend undermines confidence in the company’s ability to generate consistent earnings growth.
Valuation Perspective
The valuation grade for T.V. Today Network Ltd is classified as risky. The stock currently trades at valuations that are considered elevated relative to its historical averages and sector benchmarks. This elevated risk is compounded by the company’s negative operating profits and deteriorating financial health. Despite a high dividend yield of 2.5%, which might appear attractive superficially, the underlying fundamentals suggest caution. Investors should be wary of the potential for further downside given the disconnect between price and earnings quality.
Financial Trend Analysis
The financial trend for the company is very negative as of today. The latest quarterly results reveal a decline in net sales by -5.49%, with the company reporting negative earnings for three consecutive quarters. The quarterly profit after tax (PAT) stands at ₹5.63 crores, down by -29.6% compared to the previous four-quarter average. Return on capital employed (ROCE) is at a low 4.68%, indicating inefficient use of capital. These metrics highlight a deteriorating financial position, with shrinking revenues and profitability raising concerns about the company’s operational viability.
Technical Outlook
From a technical standpoint, the stock is graded bearish. Price action over recent months has been weak, with the stock delivering a 1-year return of -34.22% as of 03 February 2026. Shorter-term returns also reflect this downtrend, including a 1-month decline of -13.62% and a 3-month drop of -16.55%. The stock’s performance consistently lags behind the BSE500 benchmark, underperforming in each of the last three annual periods. This persistent underperformance signals a lack of positive momentum and investor confidence in the near term.
Stock Performance and Market Context
Currently, T.V. Today Network Ltd is classified as a microcap within the media and entertainment sector. The stock’s recent price movement shows a modest 1-day gain of 1.16%, but this is overshadowed by longer-term declines. Over the past six months, the stock has fallen by -19.53%, and year-to-date returns stand at -13.74%. These figures underscore the challenges faced by the company amid a difficult operating environment and weak investor sentiment.
Operational Challenges and Risks
The company’s operational difficulties are evident in its declining sales and profitability. The latest quarter recorded net sales at ₹187.55 crores, the lowest in recent periods. Negative operating profits and a significant drop in earnings highlight the risk profile of the stock. Investors should consider these factors carefully, as they suggest ongoing headwinds that may continue to pressure the stock price and financial health.
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What This Rating Means for Investors
For investors, the Strong Sell rating serves as a clear cautionary signal. It suggests that holding or initiating new positions in T.V. Today Network Ltd carries considerable risk, given the company’s weak fundamentals, negative financial trends, and bearish technical outlook. The rating advises investors to consider reducing exposure or avoiding the stock until there is a meaningful improvement in the company’s operational and financial performance.
Summary of Key Metrics as of 03 February 2026
The Mojo Score currently stands at 15.0, reflecting the overall negative sentiment and risk associated with the stock. This is a significant decline from the previous score of 37 when the rating was last updated on 28 July 2025. The company’s financial grades—average quality, risky valuation, very negative financial trend, and bearish technicals—combine to justify the Strong Sell recommendation.
Conclusion
In conclusion, T.V. Today Network Ltd’s current Strong Sell rating by MarketsMOJO is grounded in a thorough analysis of its present-day fundamentals and market performance. Investors should be mindful of the company’s ongoing challenges, including declining sales, shrinking profits, and poor returns relative to benchmarks. Until these issues are addressed and the company demonstrates a sustainable turnaround, the stock remains a high-risk proposition in the media and entertainment sector.
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