Why is Den Networks Ltd ?
1
Poor Management Efficiency with a low ROE of 6.26%
- The company has been able to generate a Return on Equity (avg) of 6.26% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -3.87% over the last 5 years
3
The company has declared Negative results for the last 3 consecutive quarters
- PAT(Q) At Rs 40.31 cr has Fallen at -28.0 %
- PBDIT(Q) Lowest at Rs 27.66 cr.
- DEBTORS TURNOVER RATIO(HY) Lowest at 7.14 times
4
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 04-Oct-24 and has generated -40.7% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
5
Despite the size of the company, domestic mutual funds hold only 0.25% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
6
Below par performance in long term as well as near term
- Along with generating -41.32% returns in the last 1 year, the stock has also underperformed BSE 500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in DTH/Cable)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Den Networks for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Den Networks
-41.28%
-1.06
38.86%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
-3.87%
EBIT Growth (5y)
17.95%
EBIT to Interest (avg)
21.53
Debt to EBITDA (avg)
0.12
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.40
Tax Ratio
13.95%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.93%
ROCE (avg)
5.77%
ROE (avg)
6.26%
Valuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
13
Price to Book Value
0.41
EV to EBIT
-97.86
EV to EBITDA
-12.85
EV to Capital Employed
-3.24
EV to Sales
-1.57
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
6.37%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
2What is working for the Company
ROCE(HY)
Highest at 7.27 %
-9What is not working for the Company
PAT(Q)
At Rs 40.31 cr has Fallen at -28.0 %
PBDIT(Q)
Lowest at Rs 27.66 cr.
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.14 times
OPERATING PROFIT TO NET SALES (Q)
Lowest at 10.61%
NON-OPERATING INCOME(Q)
is 99.30 % of Profit Before Tax (PBT
EPS(Q)
Lowest at Rs 0.85
Loading Valuation Snapshot...
Here's what is not working for Den Networks
Profit After Tax (PAT) - Quarterly
At Rs 40.31 cr has Fallen at -28.0 %
over average PAT of the previous four quarters of Rs 55.98 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 27.66 cr. and Fallen
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 10.61%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Non Operating Income - Quarterly
is 99.30 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.85
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Lowest at 7.14 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio