T.V. Today Netw. (TVTODAY)

FairStock Score: 35/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 1/1

Key Financials

Strengths

• Price-to-book of 0.78 and negligible debt (D/E 0.02) give the balance sheet some downside support.
• Promoter holding of 63.21% aligns management's interests with minority shareholders.
• ROCE of 12.45% suggests underlying capital can generate a decent return if operating earnings recover.
• Dividend yield of 2.40% provides some income while waiting for an operational recovery.

Concerns

• ROE of 1.23% and latest quarter net profit of roughly ₹0 Cr show severely impaired earnings power.
• Sales declined 8.38% and profits fell 60.58%, with no concrete turnaround evidence yet.
• Piotroski F-Score of 3/9 and FairStock Score of 11/100 indicate weak financial health and high risk.
• P/E of 31.98 is high because earnings are depressed; valuation depends entirely on recovery.

AI Analysis

At ₹114.62, TV Today Network caught my eye because it trades at 0.78 times book value while carrying almost no debt. Book value is ₹147.84, so the market gives you roughly a 22% discount to net assets. That is the kind of starting point Graham liked. But a cheap price is not enough. The business itself is not earning its keep: return on equity is a paltry 1.23%, and profits fell over 60% in the latest year while sales declined 8.38%. A return on capital employed of 12.45% looks useful, but it is not flowing into equity returns because net income has collapsed. The latest quarter's sales of ₹212 Cr produced near zero net profit, so there is no confirmed earnings power today. A P/E of 31.98 is not cheap when earnings are collapsing; it is simply the mathematical result of weak trailing profits. The Piotroski score of 3/9 and FairStock score of 11/100 tell me the financial health is fragile. On the plus side, promoter holding of 63.21% aligns their interest with mine, and a 2.40% dividend yield offers some income while I wait, although with profit near zero, the dividend cover is thin. I would classify this not as a wonderful business at a fair price, but a fair balance sheet at a bargain price. The low debt and strong book value provide a margin of safety, but only if operations stabilize. I need to see revenue stop falling and return on equity move back toward a respectable double digit. In Buffett's terms, this is a cigar butt: a cheap asset with one or two puffs left. It could become a turnaround, but no evidence is visible yet. Until profit growth turns positive, I remain skeptical and would prefer to watch rather than buy.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer