Network 18 Media & Investments Ltd (NETWORK18) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Media Matrix

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Nazara Technolo.

Jagran Prakashan

Saregama India

Netwrk.18 Media

Hathway Cable

Amagi Media Labs

Why is Network 18 Media & Investments Ltd ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -14.73% and Operating profit at -167.19% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) of 2.40 times
The company has been able to generate a Return on Equity (avg) of 5.64% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

NET SALES(Latest six months) At Rs 1,155.15 cr has Grown at -39.89%
PAT(Latest six months) At Rs -3.66 cr has Grown at -39.89%
DEBT-EQUITY RATIO(HY) Highest at 0.67 times

Risky - Negative Operating Profits

The company has recorded a negative EBIT of Rs. -88.88 cr
Over the past year, while the stock has generated a return of -18.74%, its profits have risen by 113.7% ; the PEG ratio of the company is 1.4
The stock is trading risky as compared to its average historical valuations

Despite the size of the company, domestic mutual funds hold only 0.3% 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

Real-Time Research Report

Verdict Report

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 Netwrk.18 Media for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Netwrk.18 Media

-18.74%

-0.47

39.85%

Sensex

-3.74%

-0.28

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-14.73%

EBIT Growth (5y)

-167.19%

EBIT to Interest (avg)

1.14

Debt to EBITDA (avg)

280.44

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

0.93

Tax Ratio

0.02%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

6.42%

ROCE (avg)

6.54%

ROE (avg)

5.64%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

154

Industry P/E

Price to Book Value

1.08

EV to EBIT

-94.86

EV to EBITDA

193.10

EV to Capital Employed

1.05

EV to Sales

3.98

PEG Ratio

1.36

Dividend Yield

ROCE (Latest)

-1.11%

ROE (Latest)

0.70%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 0.56 times

PAT(9M)

Higher at Rs 37.02 Cr

NET SALES(Q)

Highest at Rs 615.78 cr

PBDIT(Q)

Highest at Rs 30.36 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 4.93%

-11What is not working for the Company

NET SALES(Latest six months)

At Rs 1,155.15 cr has Grown at -39.89%

PAT(Latest six months)

At Rs -3.66 cr has Grown at -39.89%

DEBT-EQUITY RATIO(HY)

Highest at 0.67 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.59 times

EPS(Q)

Lowest at Rs -0.20

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Here's what is working for Netwrk.18 Media

Operating Profit to Interest - Quarterly

Highest at 0.56 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 615.78 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 30.36 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 4.93%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Here's what is not working for Netwrk.18 Media

Profit After Tax (PAT) - Latest six months

At Rs -3.66 cr has Grown at -39.89%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.67 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Earnings per Share (EPS) - Quarterly

Lowest at Rs -0.20

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Lowest at 3.59 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio