NETWORK18 - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.4

Network18 Media & Investments Ltd. currently exhibits poor profitability, negative earnings, and valuation uncertainties, making it a speculative and high-risk holding.

📉 Core Financials Snapshot

ROE: -3.34% and ROCE: 0.61% — signals capital inefficiency and operational underperformance.

EPS: -₹9.46 — negative earnings suggest ongoing losses, with limited visibility on earnings turnaround.

Quarterly PAT

Loss narrowed from ₹-19.0 Cr. to ₹-1.78 Cr. — improved by 98.6%, though still in negative territory.

Debt-to-equity: 0.62 — moderate leverage, manageable but must be monitored closely.

Dividend Yield: 0.00% — no passive income opportunity.

📊 Valuation Metrics Overview

Metric Value Comment

P/E Ratio N/A Not meaningful due to negative earnings

P/B Ratio ~1.83 Reasonable, but lacks earnings support

PEG Ratio Not available Limits growth-adjusted valuation analysis

Intrinsic Value Likely below market price Earnings weakness undermines fair value estimate

Verdict: Current valuation lacks fundamental justification — speculative pricing driven more by sentiment than earnings strength.

🎙️ Business Model & Strategic Footing

Operates across TV, digital content, and news media verticals; subsidiaries include CNBC-TV18, News18, and others.

Backed by Reliance Industries, which offers strategic strength but not guaranteed profitability.

Faces intense competition from digital platforms, advertising volatility, and cyclical media revenues.

Innovation and consolidation can offer future upside, but current execution remains weak.

📉 Technical Snapshot

RSI: 47.7 — neutral zone; no strong directional signal.

MACD: 0.75 — mild bullish crossover; short-term momentum possible.

Price hovering near DMA 50 (₹55.4) and below DMA 200 (₹59.3) — suggests sideways movement or consolidation.

Volume below 1-week average — limited conviction or speculative interest.

🎯 Entry Zone & Investment Strategy

Suggested Entry Zone: ₹50–₹54 — only for speculative traders betting on a sentiment-driven rebound.

Long-Term Holding Guidance

Not suited for conservative or dividend-seeking investors.

Only consider if you believe in strategic transformation led by parent group (Reliance).

Close tracking of earnings, digital monetization, and advertiser traction is crucial.

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