Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Digicontent Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:22 pm

Market Cap 304 Cr.
Current Price 52.3
High / Low52.3/18.0
Stock P/E17.9
Book Value 2.38
Dividend Yield0.00 %
ROCE19.8 %
ROE%
Face Value 2.00
PEG Ratio0.40

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Digicontent Ltd

Competitors of Digicontent Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Esha Media Research Ltd 12.2 Cr. 15.723.4/2.87 13.70.00 %16.7 %% 10.0
DAPS Advertising Ltd 13.2 Cr. 25.542.9/25.013.5 30.90.59 %9.76 %7.15 % 10.0
Brandbucket Media & Technology Ltd 36.1 Cr. 15.545.4/7.4794.9 34.20.00 %1.64 %1.22 % 10.0
Vertoz Advertising Ltd 1,293 Cr. 15.245.2/14.360.1 2.050.00 %13.4 %13.4 % 1.00
Next Mediaworks Ltd 70.3 Cr. 10.611.0/5.79 14.50.00 %8.37 %% 10.0
Industry Average798.50 Cr22.4746.6016.290.10%11.61%7.26%7.17

All Competitor Stocks of Digicontent Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales74.4268.0967.6482.7686.6987.0479.2386.3792.3091.3790.1798.39108.00
Expenses57.2357.6561.2364.3166.2979.3381.3984.1482.9685.7179.7790.2698.61
Operating Profit17.1910.446.4118.4520.407.71-2.162.239.345.6610.408.139.39
OPM %23.10%15.33%9.48%22.29%23.53%8.86%-2.73%2.58%10.12%6.19%11.53%8.26%8.69%
Other Income0.363.071.991.372.682.821.661.080.881.870.770.600.55
Interest2.923.193.243.102.652.852.943.854.304.564.094.074.35
Depreciation13.0612.853.964.134.184.113.954.324.514.514.484.505.05
Profit before tax1.57-2.531.2012.5916.253.57-7.39-4.861.41-1.542.600.160.54
Tax %90.45%-611.07%111.67%34.07%31.45%50.42%12.86%6.38%81.56%-37.66%60.77%575.00%201.85%
Net Profit0.15-17.99-0.148.3011.141.77-6.44-4.550.26-2.121.02-0.76-0.55
EPS in Rs0.03-3.09-0.021.431.910.30-1.11-0.780.04-0.360.18-0.13-0.09

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales-0268259249324349372
Expenses-0238235223271334339
Operating Profit-0302426531534
OPM %11%9%11%16%4%9%
Other Income-0125954
Interest291212121617
Depreciation-0385352161718
Profit before tax-2-17-40-3334-123
Tax %-0%29%16%-32%37%-4%
Net Profit-5-12-33-4421-13-2
EPS in Rs-5.67-7.493.62-2.21-0.27
Dividend Payout %-0%-0%-0%-0%-0%-0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-140.00%-175.00%-33.33%147.73%-161.90%
Change in YoY Net Profit Growth (%)0.00%-35.00%141.67%181.06%-309.63%

Digicontent Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 5 years from 2018-2019 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:9%
3 Years:19%
TTM:20%
Compounded Profit Growth
10 Years:%
5 Years:20%
3 Years:29%
TTM:1163%
Stock Price CAGR
10 Years:%
5 Years:72%
3 Years:42%
1 Year:161%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:37 am

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital120.00121212121212
Reserves655319-25-6-18-102
Borrowings80801089068153157140
Other Liabilities52716183100808187
Total Liabilities208205200160174226239241
Fixed Assets1117672179887384
CWIP000002101
Investments000030151029
Other Assets97129129142134121145126
Total Assets208205200160174226239241

Reserves and Borrowings Chart

Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-0-41767392523
Cash from Investing Activity +-61-2-1-40-2430-2
Cash from Financing Activity +80-1-17-16-33-55-18
Net Cash Flow19-7-111-1802

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-80.00-50.00-84.00-64.00-15.00-138.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days634469646663
Inventory Days
Days Payable
Cash Conversion Cycle634469646663
Working Capital Days27819-21828
ROCE %-5%-20%-19%60%3%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters69.78%64.90%64.90%64.90%64.90%64.90%66.81%66.81%66.81%66.81%66.81%66.81%
FIIs0.06%0.24%0.24%0.23%0.06%0.06%0.06%0.06%0.06%0.06%0.06%0.00%
DIIs0.05%0.04%0.04%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%
Public29.83%34.53%34.53%34.54%34.70%34.70%32.80%32.80%32.78%32.79%32.78%32.86%
Others0.28%0.28%0.28%0.28%0.28%0.28%0.28%0.28%0.28%0.28%0.28%0.28%
No. of Shareholders24,79724,32923,78223,68823,76523,22722,74521,83021,26521,54820,90820,613

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)0.99-2.213.62-7.49-5.67
Diluted EPS (Rs.)0.99-2.213.62-7.49-5.67
Cash EPS (Rs.)4.160.766.431.473.42
Book Value[Excl.RevalReserv]/Share (Rs.)0.19-1.020.96-2.335.29
Book Value[Incl.RevalReserv]/Share (Rs.)0.19-1.020.96-2.335.29
Revenue From Operations / Share (Rs.)71.2360.0155.6942.7644.52
PBDIT / Share (Rs.)8.373.5310.625.374.43
PBIT / Share (Rs.)5.200.567.81-3.59-4.66
PBT / Share (Rs.)2.18-2.135.77-5.68-6.79
Net Profit / Share (Rs.)0.98-2.213.62-7.49-5.67
NP After MI And SOA / Share (Rs.)0.98-2.213.62-7.49-5.67
PBDIT Margin (%)11.745.8819.0712.559.95
PBIT Margin (%)7.290.9314.01-8.39-10.46
PBT Margin (%)3.06-3.5410.36-13.27-15.25
Net Profit Margin (%)1.38-3.676.49-17.51-12.74
NP After MI And SOA Margin (%)1.38-3.676.49-17.51-12.74
Return on Networth / Equity (%)499.130.00376.560.00-107.20
Return on Capital Employeed (%)19.172.37770.16-21.64-18.99
Return On Assets (%)2.40-5.6712.12-27.27-16.47
Long Term Debt / Equity (X)76.96-12.610.00-5.923.00
Total Debt / Equity (X)76.96-12.6112.19-6.653.52
Asset Turnover Ratio (%)1.780.010.010.010.07
Current Ratio (X)1.561.190.751.671.01
Quick Ratio (X)1.561.190.751.671.01
Interest Coverage Ratio (X)2.781.315.222.582.08
Interest Coverage Ratio (Post Tax) (X)1.330.172.78-2.59-1.66
Enterprise Value (Cr.)207.61163.71149.2192.58120.78
EV / Net Operating Revenue (X)0.500.460.460.370.46
EV / EBITDA (X)4.267.962.412.964.68
MarketCap / Net Operating Revenue (X)0.300.260.290.160.08
Price / BV (X)108.51-15.5617.39-3.080.75
Price / Net Operating Revenue (X)0.300.260.290.160.08
EarningsYield0.04-0.130.21-1.04-1.42

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Digicontent Ltd as of November 23, 2024 is: 6.52

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 23, 2024, Digicontent Ltd is Overvalued by 87.53% compared to the current share price 52.30

Default values used*: Default value of 15% for ROE is used

Intrinsic Value of Digicontent Ltd as of November 23, 2024 is: 9.45

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 23, 2024, Digicontent Ltd is Overvalued by 81.93% compared to the current share price 52.30

Default values used*: Default value of 15% for ROE is used

Last 5 Year EPS CAGR: 44.96%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 9.86, which is a positive sign.
  1. The stock has a low average ROCE of 5.57%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 52.71, which may not be favorable.
  3. The company has higher borrowings (109.50) compared to reserves (10.00), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (260.14) and profit (-9.57).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Digicontent Ltd:
    1. Net Profit Margin: 1.38%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 19.17% (Industry Average ROCE: 11.61%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 499.13% (Industry Average ROE: 7.26%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.33
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.56
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 17.9 (Industry average Stock P/E: 46.6)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 76.96
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Digicontent Ltd. is a Public Limited Listed company incorporated on 14/10/2017 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74999DL2017PLC322147 and registration number is 322147. Currently Company is involved in the business activities of Advertising. Company’s Total Operating Revenue is Rs. 1.34 Cr. and Equity Capital is Rs. 11.64 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Advertising & Media AgencyHindustan Times House, 2nd Floor, 18-20, New Delhi Delhi 110001investor@digicontent.co.in
http://www.digicontent.co.in
Management
NamePosition Held
Mr. Priyavrat BhartiaChairman & Non-Exe.Director
Mr. Praveen SomeshwarNon Executive Director
Mr. Samudra BhattacharyaNon Executive Director
Mr. Mannu BhatiaIndependent Director
Mr. Lloyd MathiasIndependent Director
Ms. Suchitra RajendraIndependent Director

FAQ

What is the latest intrinsic value of Digicontent Ltd?

The latest intrinsic value of Digicontent Ltd as on 22 November 2024 is ₹6.52, which is 87.53% lower than the current market price of ₹52.30.

What is the Market Cap of Digicontent Ltd?

The Market Cap of Digicontent Ltd is 304 Cr..

What is the current Stock Price of Digicontent Ltd as on 22 November 2024?

The current stock price of Digicontent Ltd as on 22 November 2024 is 52.3.

What is the High / Low of Digicontent Ltd stocks in FY 2024?

In FY 2024, the High / Low of Digicontent Ltd stocks is 52.3/18.0.

What is the Stock P/E of Digicontent Ltd?

The Stock P/E of Digicontent Ltd is 17.9.

What is the Book Value of Digicontent Ltd?

The Book Value of Digicontent Ltd is 2.38.

What is the Dividend Yield of Digicontent Ltd?

The Dividend Yield of Digicontent Ltd is 0.00 %.

What is the ROCE of Digicontent Ltd?

The ROCE of Digicontent Ltd is 19.8 %.

What is the ROE of Digicontent Ltd?

The ROE of Digicontent Ltd is %.

What is the Face Value of Digicontent Ltd?

The Face Value of Digicontent Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Digicontent Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE