NETWORK18 - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 2.9

📊 Core Financials Overview

Profitability

PAT remains negative (–₹70.8 Cr), with minimal improvement from the previous quarter — signals ongoing operational challenges.

EPS: ₹24.4 appears inconsistent with losses, likely due to accounting adjustments or historical earnings.

Return Metrics

ROCE: –1.20% and ROE: –9.29% — both negative, indicating poor capital and equity efficiency.

Debt Profile

Debt-to-equity: 0.63 — moderate leverage, manageable but not ideal given weak profitability.

Cash Flow: Not disclosed, but negative earnings suggest weak operating cash generation.

💹 Valuation Indicators

Metric Value Commentary

P/E Ratio Not applicable Due to negative earnings, P/E is not meaningful.

P/B Ratio ~1.84 Reasonable, but not compelling given negative ROE.

PEG Ratio Not available Lack of earnings growth makes PEG irrelevant.

Intrinsic Value Estimated near ₹45–₹50 Current price of ₹55.7 is slightly above fair value — not undervalued.

🧠 Business Model & Competitive Advantage

Network18 Media & Investments Ltd. is a diversified media conglomerate with operations across

Broadcasting: Includes channels like CNBC-TV18, CNN-News18, and Colors — generates revenue from ads and subscriptions.

Digital Media: Platforms such as Moneycontrol, Firstpost, and News18.com — showing strong growth, with digital revenue rising from ₹800 Cr in FY21 to ₹1,200 Cr in FY23

1

.

Publishing & Film: Includes print media and movie production — declining segments.

Strategic Pivot

Shift toward digital platforms aligns with global media trends.

Gross profit margin improved to 34% in Q2 FY23, indicating better cost control

1

.

Its competitive edge lies in brand recognition, multi-platform presence, and digital transition, but profitability remains a concern.

📈 Technical & Sentiment Signals

RSI: 53.1 — neutral zone, no strong momentum.

MACD: Slightly negative — mild bearish crossover.

Volume: Below weekly average — suggests waning interest.

DMA 50/200: Price hovering near both — trend indecisive.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹45–₹50 — closer to intrinsic value and technical support.

Long-Term View: NETWORK18 is a speculative media play with strong brand assets but weak financials. Suitable only for long-term investors who believe in its digital growth story and are comfortable with volatility. No dividend yield currently, so returns depend entirely on capital appreciation.

You can explore Network18’s financial health breakdown or its business model overview for deeper insights. Let me know if you'd like a comparison with Zee Media or TV18 Broadcast.

1

dcfmodeling.com

Edit in a page