NETWORK18 - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 2.2

Network18 is currently in a weak financial position with negative returns, consistent losses, and no dividend payout. While it holds strategic media assets, its valuation and fundamentals suggest high risk for long-term investors.

📊 Financial Overview

• Profitability: PAT at ₹-70.1 Cr, marginally improved from ₹-70.8 Cr QoQ
• Margins: ROCE at -1.20%, ROE at -9.29% — indicates capital erosion and operational inefficiency
• Debt Profile: Debt-to-equity ratio of 0.63 — moderately leveraged
• Dividend Yield: 0.00% — no income return for shareholders

📈 Valuation Metrics

• P/E Ratio: Not applicable due to negative earnings
• P/B Ratio: ~1.44 — fair valuation relative to book value ₹33.2
• PEG Ratio: Not available — growth visibility is unclear
• Intrinsic Value: Estimated around ₹35–₹40 based on asset value and sector multiples

🏢 Business Model & Competitive Edge

• Core Operations: Network18 operates a diversified media portfolio including TV18, digital platforms, and print media
• Moat: Backed by Reliance Industries, strong brand presence in news and entertainment
• Growth Drivers: Digital advertising, OTT expansion, and content monetization

📌 Entry Zone Recommendation

• Suggested Entry: ₹40–₹45 — near 52-week low and below DMA50
• Technical Indicators: RSI at 31.4 (oversold), MACD negative — bearish momentum, potential for technical bounce

📈 Long-Term Holding Guidance

• High-risk speculative hold; suitable only for aggressive investors betting on turnaround and digital monetization
• Monitor earnings recovery and cost optimization efforts

✅ Positive

• Backed by Reliance Industries — strong parentage
• Favorable positioning in digital and regional media segments
• EPS reported at ₹24.7 (TTM), though inconsistent

⚠️ Limitation

• Consistent losses and negative return ratios
• No dividend payout
• Decline in FII and DII holdings

📰 Company Negative News

• FY25 net loss widened to ₹1,690 Cr from ₹210 Cr YoY; revenue fell 21% to ₹7,360 Cr

  Simply Wall St

🌟 Company Positive News

• Despite industry-wide ad slowdown, Network18 grew ad pricing due to strong viewership in key markets

  Network 18

🏭 Industry

• Media & broadcasting industry P/E at 44.3 — Network18 trades at a discount due to losses
• Sector driven by digital transformation, ad recovery, and content innovation

🧾 Conclusion

• Network18 is a strategically positioned media company with strong backing but faces significant financial headwinds
• Speculative buy near support for turnaround potential; long-term investors should await signs of sustained profitability

Sources

Network 18

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