Netwrk.18 Media (NETWORK18)
TurnaroundFairStock Score: 12/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹29.01 |
| Market Cap | ₹4,480.56 Cr |
| P/E Ratio | 153.97 |
| ROCE | 0.61% |
| ROE | 19.8% |
| Dividend Yield | 0% |
| Profit Growth | -115.1% |
| Debt/Equity | 0.66 |
| Sales Growth | 8.99% |
| Free Cash Flow | ₹-1,67,47,874.56 Cr |
| Promoter Holding | 56.89% |
| 52-Week Range | ₹26.34 — ₹58.1 |
| Sector | Entertainment |
| Book Value | ₹32.23 |
Strengths
- Promoter holding at 56.89% ensures strong owner alignment with minority investors
- Return on equity at 19.80% looks respectable at first glance
- Debt/equity of 0.66 is not excessive for a media business
- Piotroski F-Score of 6/9 points to some financial health despite the operating slump
Concerns
- P/E of 153.97 and P/B of 3.99 leave no margin of safety against book value of ₹8.91
- Sales are down 60.36% and the latest quarter reported a net loss of ₹5 Cr
- Negative free cash flow and ROCE of 0.61% show poor capital productivity and cash burn
- Zero dividend yield and a FairStock risk score of 17/100 offer no compensation to the investor
AI Analysis
At ₹35.53, Netwrk.18 Media carries a market cap of ₹5,139 Cr. As a Graham disciple, I ask two questions: what is this business earning, and what am I paying? The answer is troubling. Sales have fallen 60.36%, and the latest quarter had revenue of ₹539 Cr with a net loss of ₹5 Cr. The 251.54% profit growth is a base-effect illusion, not a sign of compounding; PEG of 0.61 is therefore meaningless. A P/E of 153.97 and P/B of 3.99 against book value of ₹8.91 give me no margin of safety. Return on equity is 19.80%, but return on capital employed is a mere 0.61%; capital is being destroyed at the operating level. Free cash flow is deeply negative, so the company is burning cash. Debt/equity of 0.66 is manageable, and promoter holding of 56.89% does align owners with public shareholders. The Piotroski F-Score of 6/9 is acceptable but not strong, while FairStock scores the story 17/100. With zero dividend yield, any return must come from price appreciation, which in the 52-week range of ₹27.38 to ₹58.55 feels speculative. I have no durable moat to anchor my valuation. This is a potential turnaround, but a viable turnaround needs demonstrated stability, positive cash flow, and a sane acquisition price. None of those conditions exist today. If the company stabilises revenue, improves ROCE to a meaningful level, and starts generating free cash flow, I could revisit. Until then, I will not let an attractive ROE or a low PEG ratio lure me into a value trap. This one belongs in the too-hard pile.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer