⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
NETWORK18 - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.2
| Stock Code | NETWORK18 | Market Cap | 6,197 Cr. | Current Price | 40.2 ₹ | High / Low | 65.3 ₹ |
| Book Value | 33.2 ₹ | Dividend Yield | 0.00 % | ROCE | -1.20 % | ROE | -9.29 % |
| Face Value | 5.00 ₹ | DMA 50 | 44.3 ₹ | DMA 200 | 51.3 ₹ | Chg in FII Hold | -0.31 % |
| Chg in DII Hold | -0.07 % | PAT Qtr | -55.8 Cr. | PAT Prev Qtr | -70.1 Cr. | RSI | 32.4 |
| MACD | -0.86 | Volume | 33,09,176 | Avg Vol 1Wk | 27,95,270 | Low price | 39.6 ₹ |
| High price | 65.3 ₹ | Debt to equity | 0.63 | 52w Index | 2.60 % | Qtr Profit Var | 15.8 % |
| EPS | 1.74 ₹ | Industry PE | 40.5 |
📊 Core Financials
- Revenue & Profitability: PAT at -55.8 Cr. vs -70.1 Cr. previous quarter → continued losses
- Margins: ROCE at -1.20% and ROE at -9.29% → negative returns
- Debt Ratios: Debt-to-equity at 0.63 → moderate leverage
- Cash Flow: No dividend yield (0.00%) indicates weak shareholder returns
💹 Valuation Indicators
- P/E Ratio: Not applicable due to losses
- P/B Ratio: Current Price 40.2 ₹ / Book Value 33.2 ₹ ≈ 1.21 → fairly valued on book basis
- PEG Ratio: Not meaningful due to negative earnings
- Intrinsic Value: Estimated fair value ~30–35 ₹, below current price
🏢 Business Model & Competitive Advantage
- Media and broadcasting operations under Reliance group umbrella
- Strong brand presence but profitability remains weak
- Competitive disadvantage due to sustained losses and low efficiency
📈 Entry Zone & Long-Term Guidance
- Entry Zone: 30–35 ₹ (closer to intrinsic value and support levels)
- Long-Term Holding: Risky; suitable only for speculative investors awaiting turnaround
✅ Positive
- P/B ratio near 1 indicates fair valuation on asset basis
- Quarterly losses reduced from -70.1 Cr. to -55.8 Cr.
- Strong parent group backing (Reliance)
⚠️ Limitation
- Negative ROCE (-1.20%) and ROE (-9.29%)
- Consistent losses with weak EPS (1.74 ₹)
- No dividend yield
📉 Company Negative News
- FII holdings reduced (-0.31%)
- DII holdings reduced (-0.07%)
- Stock trading below DMA 50 and DMA 200
📈 Company Positive News
- Quarterly losses narrowed by 15.8%
- Technical indicators (RSI at 32.4) suggest oversold levels
🏭 Industry
- Media & broadcasting sector supported by advertising and digital growth
- Industry PE at 40.5 indicates optimism, but NETWORK18 lags behind peers
🔎 Conclusion
Network18 is currently loss-making with negative return ratios and no dividend support. While fairly valued on book value, profitability concerns and weak fundamentals make it a speculative play. Entry around 30–35 ₹ may be considered only for high-risk investors, with long-term holding dependent on a turnaround in earnings and operational efficiency.