The stock has been trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. Over the last two trading sessions, T.V. Today Network has recorded a cumulative return of -1.03%, despite outperforming its sector by 1.42% on the day the new low was hit. This contrasts with the broader market, where the Sensex opened 284.45 points higher and is currently trading at 85,632.68, a new 52-week high, supported by mega-cap stocks leading the gains.
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Examining the company’s financials reveals a challenging environment. Over the past year, T.V. Today Network’s stock has recorded a return of -26.00%, while the Sensex has shown a positive return of 10.38%. The stock’s 52-week high was Rs.224.9, indicating a substantial decline from that peak. The company’s net sales for the most recent quarter stood at Rs.187.55 crore, the lowest recorded in recent periods, with a quarter-on-quarter fall of 5.49%. Profit after tax (PAT) for the quarter was Rs.5.63 crore, reflecting a 29.6% reduction compared to the previous four-quarter average.
Return on capital employed (ROCE) for the half-year period is at 4.68%, which is notably low. The company’s operating profit has shown a negative trend over the last five years, with an annual rate of change of -155.13%. This prolonged contraction in operating profit has contributed to the stock’s cautious positioning in the market.
Despite these figures, the company maintains a low average debt-to-equity ratio, effectively at zero, which suggests limited leverage risk. Promoters continue to hold the majority stake in the company, maintaining control over strategic decisions.
Over the last three years, T.V. Today Network has consistently underperformed the BSE500 index, with negative returns in each annual period. The stock’s current dividend yield stands at 2.2%, which is relatively high given the recent earnings performance.
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The broader market context highlights a divergence between T.V. Today Network’s performance and the overall positive sentiment in the media and entertainment sector. While the Sensex is trading above its 50-day moving average, supported by mega-cap stocks, T.V. Today Network remains below all major moving averages, indicating a lack of upward momentum.
In summary, the stock’s fall to Rs.138 represents a key technical level reached after a period of subdued financial results and sustained underperformance relative to market benchmarks. The company’s recent quarterly results show declines in net sales and profits, alongside a low return on capital employed. These factors have contributed to the stock’s current valuation and trading levels within the media and entertainment sector.
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