NETWORK18 - Investment Analysis

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

Investment Rating: 2.1

📉 Fundamental Analysis: Network18 Media & Investments Ltd. (NETWORK18)

Network18 is a media conglomerate with strategic backing, but its financials are currently weak and inconsistent. The absence of profitability, negative ROE, and lack of dividends make it a speculative play rather than a long-term investment candidate.

Metric Value Implication

P/E Ratio Not applicable No earnings — valuation cannot be justified

ROE / ROCE -3.34% / 0.61% Poor — indicates inefficient capital use and lack of profitability

Dividend Yield 0.00% No income — not suitable for dividend investors

Debt-to-Equity 0.62 Moderate — leverage is a concern given weak earnings

EPS ₹-9.46 Negative — signals ongoing losses

Profit Growth (QoQ) +90% Improvement — but still in loss territory

⚠️ PEG Ratio Missing — likely irrelevant due to negative earnings.

📊 Technical & Trend Analysis

Current Price: ₹56.5

DMA 50 / DMA 200: ₹55.4 / ₹59.3 — trading near short-term support

RSI: 47.7 — neutral zone

MACD: +0.75 — mild positive momentum

Volume: Slightly below average — low conviction

🚫 Long-Term Investment Potential

No — not suitable for long-term investment. Network18 lacks profitability, capital efficiency, and dividend support. Unless there's a major turnaround or strategic restructuring, it remains a speculative or trading-oriented stock.

🎯 Ideal Entry Price Zone

Buy Zone (Speculative Only): ₹40–₹45

Near 52-week low — only for high-risk traders

Avoid fresh entry unless profitability returns and ROE turns positive

Long-term investors should wait for consistent earnings and margin improvement

🧭 Exit Strategy & Holding Period

If you're already holding

Holding Period: Short-term only — monitor quarterly results closely

Exit Strategy

Exit near ₹65–₹70 if price rebounds and losses narrow

Hold only if PAT turns positive and ROCE improves above 5%

Reassess if losses widen or debt increases further

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