Why is Network 18 Media & Investments Ltd ?
1
Weak Long Term Fundamental Strength with a -167.19% CAGR growth in Operating Profits over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 38.26 times
- The company has been able to generate a Return on Equity (avg) of 5.64% signifying low profitability per unit of shareholders funds
2
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
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 12-May-26 and has generated -3.91% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
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 -43.01%, its profits have risen by 113.7% ; the PEG ratio of the company is 1.2
5
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
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
-48.03%
-1.08
39.94%
Sensex
-3.04%
-0.64
13.06%
Quality key factors
Factor
Value
Sales Growth (5y)
-15.76%
EBIT Growth (5y)
-163.20%
EBIT to Interest (avg)
0.77
Debt to EBITDA (avg)
280.44
Net Debt to Equity (avg)
0.64
Sales to Capital Employed (avg)
0.93
Tax Ratio
0.09%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
4.45%
ROCE (avg)
6.54%
ROE (avg)
5.64%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
17
Price to Book Value
0.92
EV to EBIT
-92.75
EV to EBITDA
162.74
EV to Capital Employed
0.95
EV to Sales
3.53
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-1.11%
ROE (Latest)
0.70%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
1What is working for the Company
NO KEY POSITIVE TRIGGERS
-15What is not working for the Company
PAT(Q)
At Rs -38.71 cr has Fallen at -1383.1%
NET SALES(9M)
At Rs 1,671.41 cr has Grown at -30.06%
DEBT-EQUITY RATIO(HY)
Highest at 0.67 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.59 times
PBT LESS OI(Q)
Lowest at Rs -42.49 cr.
EPS(Q)
Lowest at Rs -0.25
Loading Valuation Snapshot...
Here's what is not working for Netwrk.18 Media
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -42.49 cr has Fallen at -255.86%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs -38.71 cr has Fallen at -1383.1%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very 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 periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Net Sales - Nine Monthly
At Rs 1,671.41 cr has Grown at -30.06%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -42.49 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs -0.25
in the last five quartersMOJO 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 periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio