Why is Den Networks Ltd ?
1
Poor Management Efficiency with a low ROE of 6.26%
- The company has been able to generate a Return on Equity (avg) of 6.26% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -5.05% and Operating profit at -185.47% over the last 5 years
3
Negative results in Sep 25
- PAT(Q) At Rs 35.16 cr has Fallen at -32.6% (vs previous 4Q average)
- PBDIT(Q) Lowest at Rs 18.99 cr.
- OPERATING PROFIT TO NET SALES (Q) Lowest at 7.87%
4
Risky - Negative Operating Profits
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -31.50%, its profits have fallen by -14.3%
5
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
6
Below par performance in long term as well as near term
- Along with generating -31.50% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Den Networks for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Den Networks
-31.5%
-0.91
34.51%
Sensex
4.84%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-5.05%
EBIT Growth (5y)
-185.47%
EBIT to Interest (avg)
20.05
Debt to EBITDA (avg)
0.18
Net Debt to Equity (avg)
-0.87
Sales to Capital Employed (avg)
0.36
Tax Ratio
18.94%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.62%
ROCE (avg)
6.00%
ROE (avg)
6.26%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
14
Price to Book Value
0.41
EV to EBIT
410.70
EV to EBITDA
-18.00
EV to Capital Employed
-3.63
EV to Sales
-1.74
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
5.17%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-8What is not working for the Company
PAT(Q)
At Rs 35.16 cr has Fallen at -32.6% (vs previous 4Q average
PBDIT(Q)
Lowest at Rs 18.99 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 7.87%
PBT LESS OI(Q)
Lowest at Rs -5.73 cr.
NON-OPERATING INCOME(Q)
is 112.46 % of Profit Before Tax (PBT
EPS(Q)
Lowest at Rs 0.74
Loading Valuation Snapshot...
Here's what is not working for Den Networks
Profit After Tax (PAT) - Quarterly
At Rs 35.16 cr has Fallen at -32.6% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 52.19 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 18.99 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 7.87%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -5.73 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 112.46 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.74
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)






