Stock Performance and Market Context
The stock of Network 18 Media & Investments Ltd, a key player in the Media & Entertainment sector, recorded an intraday low of Rs.36.8, down by 3.64% on the day. This decline contributed to an overall day change of -3.90%, underperforming its sector by 2.29%. The stock is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
On the broader market front, the Sensex opened flat but soon declined by 734.74 points, or 0.86%, settling at 81,601.20. The index is trading below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating mixed technical signals. Notably, the NIFTY REALTY index also hit a new 52-week low today, reflecting sectoral pressures in the market.
Over the past year, Network 18 Media & Investments Ltd has delivered a negative return of -31.99%, significantly lagging behind the Sensex’s positive 6.66% gain. The stock’s 52-week high was Rs.65.31, highlighting the extent of the recent decline.
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Financial Metrics and Profitability Concerns
Network 18 Media & Investments Ltd’s financial profile reveals several areas of concern. The company’s long-term fundamental strength is weak, with a compounded annual growth rate (CAGR) of operating profits declining by -170.36% over the last five years. This steep contraction in operating profitability has weighed heavily on investor sentiment.
The company’s ability to service its debt is limited, as reflected by a high Debt to EBITDA ratio of 657.87 times, indicating significant leverage relative to earnings before interest, tax, depreciation, and amortisation. The debt-equity ratio at the half-year mark stands at 0.65 times, the highest recorded, further underscoring the elevated financial risk.
Return on Equity (ROE) averaged 8.49%, signalling modest profitability relative to shareholders’ funds. Additionally, non-operating income constitutes 90.99% of the company’s profit before tax (PBT), suggesting that core business earnings are minimal and the company relies heavily on ancillary income streams.
Recent Quarterly Results
The latest quarterly results for December 2025 showed a sharp decline in net sales, which fell by 60.36% to Rs.539.37 crores. This significant drop in revenue has contributed to the subdued earnings performance and heightened concerns about the company’s near-term financial health.
Despite the decline in sales, profits have risen by 109.5% over the past year, a divergence that may be attributed to non-operating income and cost management. However, the stock’s price-to-earnings-to-growth (PEG) ratio stands at 1.7, indicating that the market is pricing in growth expectations that may not be fully supported by fundamentals.
Valuation and Market Sentiment
The stock is currently trading at levels considered risky relative to its historical valuations. Over the last three years, Network 18 Media & Investments Ltd has underperformed the BSE500 index across multiple time frames, including one year and three months, reflecting persistent challenges in delivering shareholder value.
Domestic mutual funds hold a marginal stake of only 0.34% in the company. Given their capacity for detailed research and due diligence, this limited exposure may indicate a cautious stance towards the stock’s valuation and business outlook.
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Summary of Key Ratings and Scores
Network 18 Media & Investments Ltd currently holds a Mojo Score of 12.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 17 Oct 2024. The Market Cap Grade is 3, reflecting the company’s mid-tier market capitalisation relative to peers. These ratings encapsulate the company’s financial challenges and market performance.
In summary, the stock’s fall to a 52-week low of Rs.36.8 is underpinned by weak long-term earnings growth, high leverage, subdued sales performance, and limited institutional interest. The broader market weakness and sectoral pressures have compounded these company-specific factors, resulting in the current valuation levels.
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