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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Den Networks Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:28 pm

Market Cap 2,076 Cr.
Current Price 43.5
High / Low69.4/42.2
Stock P/E9.47
Book Value 73.7
Dividend Yield0.00 %
ROCE7.30 %
ROE6.42 %
Face Value 10.0
PEG Ratio0.31

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

View Share Price Target for Den Networks Ltd

Competitors of Den Networks Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hathway Bhawani Cabletel & Datacom Ltd 14.3 Cr. 17.723.7/16.2 1.990.00 %2.26 %2.26 % 10.0
G V Films Ltd 136 Cr. 0.731.20/0.46 0.610.00 %2.27 %2.08 % 1.00
Encash Entertainment Ltd 11.3 Cr. 29.029.0/29.0 21.30.00 %3.81 %3.93 % 10.0
Diksat Transworld Ltd 256 Cr. 146149/126246 14.40.00 %3.36 %4.21 % 10.0
Cyber Media (India) Ltd 42.1 Cr. 26.944.0/17.217.1 0.650.00 %45.5 %% 10.0
Industry Average3,444.60 Cr151.65203.7852.890.16%37.18%10.95%5.86

All Competitor Stocks of Den Networks Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales342326303325294303283287277283273277273
Expenses278261255281244248242250239249244235233
Operating Profit64654844505541383734294240
OPM %19%20%16%14%17%18%14%13%14%12%11%15%15%
Other Income5729343430285394327505251
Interest0000-00-0011111
Depreciation64614039363332283029282928
Profit before tax57334139445014495031506462
Tax %-4%-4%1%2%-1%4%8%1%1%-304%15%29%23%
Net Profit603441384449134849126424648
EPS in Rs1.370.770.860.830.951.050.271.001.032.800.890.960.99

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,1308971,0981,1309481,1571,2851,2061,2911,3071,2261,1301,110
Expenses1,0476998141,0371,1239811,0071,0291,0791,0581,024979968
Operating Profit8219728493-176176278177212250202152142
OPM %7%22%26%8%-19%15%22%15%16%19%16%13%13%
Other Income27386588511030-165176190120112172
Interest2747898279656659323013
Depreciation5481147186206276249242247251148119116
Profit before tax29107113-88-409-155-7-288110186174143195
Tax %35%27%34%-38%-5%-21%-139%-4%47%-2%2%-65%
Net Profit197875-122-431-188-17-30159189171236263
EPS in Rs1.094.652.15-8.08-24.21-10.74-1.76-5.811.474.153.695.095.68
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)310.53%-3.85%-262.67%-253.28%56.38%90.96%-1670.59%119.60%220.34%-9.52%38.01%
Change in YoY Net Profit Growth (%)0.00%-314.37%-258.82%9.39%309.66%34.58%-1761.55%1790.19%100.74%-229.86%47.54%

Den Networks Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:0%
5 Years:-2%
3 Years:-6%
TTM:-7%
Compounded Profit Growth
10 Years:19%
5 Years:33%
3 Years:56%
TTM:-17%
Stock Price CAGR
10 Years:-11%
5 Years:3%
3 Years:4%
1 Year:-24%
Return on Equity
10 Years:-1%
5 Years:4%
3 Years:5%
Last Year:6%

Last Updated: Unknown

Balance Sheet

Last Updated: October 15, 2024, 3:54 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital133178178178194195477477477477477477477
Reserves7481,6781,5327926205912,0692,1262,2982,4762,7312,9433,040
Borrowings7501,02799885450553048221300282624
Other Liabilities6456736491,1071,0881,041927872678554524481524
Total Liabilities2,2763,5573,3572,9312,4072,3573,9553,6883,4523,5073,7593,9274,065
Fixed Assets1,0461,3551,4251,4741,2991,186935763609557562515489
CWIP6694110129455019213721291821
Investments1313791451091011272,139702,1401,9131,4261,7092,186
Other Assets1,0331,7281,6761,2199629948622,8346661,0161,7411,6851,370
Total Assets2,2763,5573,3572,9312,4072,3573,9553,6883,4523,5073,7593,9274,065

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1751086182021854226821812913984
Cash from Investing Activity +-668-1,248-481862-80-2,047429-361-258-54-66
Cash from Financing Activity +4551,126-109-161-277-411,933-68813496-115-7
Net Cash Flow-37-14-9633-7464-729-9-33-3011

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow82.00-553.00283.00-905.00-1,030.00-329.00-252.00-305.00-1.00250.00202.00124.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days1331301291017486683826212837
Inventory Days
Days Payable
Cash Conversion Cycle1331301291017486683826212837
Working Capital Days-83-148-170-167-129-69-105-95-86-78-82487
ROCE %11%8%-1%-12%-4%4%-1%4%2%2%3%7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters74.90%74.90%74.90%74.91%74.91%74.91%74.91%74.91%74.91%74.91%74.91%74.91%
FIIs1.03%1.05%1.22%1.19%1.27%1.08%1.24%1.30%0.98%1.11%0.96%0.76%
DIIs0.00%0.00%0.00%0.40%0.19%0.19%0.20%0.21%0.17%0.18%0.18%0.19%
Public23.97%23.95%23.78%23.41%23.56%23.74%23.57%23.50%23.86%23.72%23.87%24.05%
Others0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%
No. of Shareholders86,90390,53598,72895,42592,90491,15389,34599,9021,08,5481,23,3341,39,8561,59,039

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund118,3160.120.552702024-11-1243720.74%
Groww Nifty Total Market Index Fund270002702024-11-120%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)4.505.093.694.151.47
Diluted EPS (Rs.)4.505.093.694.151.47
Cash EPS (Rs.)6.867.466.749.386.38
Book Value[Excl.RevalReserv]/Share (Rs.)72.6468.3063.2059.5556.08
Book Value[Incl.RevalReserv]/Share (Rs.)72.6468.3063.2059.5556.08
Revenue From Operations / Share (Rs.)22.6723.7125.7127.4227.09
PBDIT / Share (Rs.)7.595.546.819.388.12
PBIT / Share (Rs.)5.223.043.704.122.95
PBT / Share (Rs.)5.173.013.694.052.28
Net Profit / Share (Rs.)4.504.963.634.121.21
NP After MI And SOA / Share (Rs.)4.505.093.694.151.47
PBDIT Margin (%)33.4623.3726.4734.1929.99
PBIT Margin (%)23.0212.8214.3815.0210.88
PBT Margin (%)22.7812.6914.3514.778.41
Net Profit Margin (%)19.8420.9314.1215.034.45
NP After MI And SOA Margin (%)19.8621.4814.3515.145.41
Return on Networth / Equity (%)6.277.575.957.132.68
Return on Capital Employeed (%)7.074.355.706.624.87
Return On Assets (%)5.466.465.015.731.89
Total Debt / Equity (X)0.000.000.000.000.08
Asset Turnover Ratio (%)0.280.290.320.330.31
Current Ratio (X)7.646.646.485.283.23
Quick Ratio (X)7.646.646.485.283.23
Interest Coverage Ratio (X)140.51188.221167.24133.5412.17
Interest Coverage Ratio (Post Tax) (X)84.32169.54623.9059.702.81
Enterprise Value (Cr.)1002.42-10.921118.722097.16-651.36
EV / Net Operating Revenue (X)0.92-0.010.911.60-0.50
EV / EBITDA (X)2.77-0.043.454.69-1.68
MarketCap / Net Operating Revenue (X)2.081.131.441.801.09
Price / BV (X)0.650.390.590.840.54
Price / Net Operating Revenue (X)2.081.131.441.801.09
EarningsYield0.090.190.100.080.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Den Networks Ltd as of November 17, 2024 is: 45.70

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 17, 2024, Den Networks Ltd is Undervalued by 5.06% compared to the current share price 43.50

Intrinsic Value of Den Networks Ltd as of November 17, 2024 is: 59.89

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 17, 2024, Den Networks Ltd is Undervalued by 37.68% compared to the current share price 43.50

Last 5 Year EPS CAGR: 31.04%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -60.42, which is a positive sign.
  2. The company has higher reserves (1,818.77 cr) compared to borrowings (418.23 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (142.77 cr) and profit (8.46 cr) over the years.
  1. The stock has a low average ROCE of 1.92%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 72.58, which may not be favorable.

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 Den Networks Ltd:
    1. Net Profit Margin: 19.84%
      • 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: 7.07% (Industry Average ROCE: 37.18%)
      • 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%: 6.27% (Industry Average ROE: 10.95%)
      • 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): 84.32
      • 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: 7.64
      • 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: 9.47 (Industry average Stock P/E: 203.78)
      • 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: 0
      • 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

Den Networks Ltd. is a Public Limited Listed company incorporated on 10/07/2007 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L92490MH2007PLC344765 and registration number is 165673. Currently Company is involved in the business activities of Television programming and broadcasting activities. Company’s Total Operating Revenue is Rs. 1153.76 Cr. and Equity Capital is Rs. 476.77 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Entertainment & MediaUnit No. 116, 1st Floor, C Wing, Bldg. No. 2, Kailas Industrial Complex, Mumbai Maharashtra 400079investorrelations@denonline.in
http://www.dennetworks.com
Management
NamePosition Held
Mr. Sameer ManchandaChairman & Non-Exe.Director
Mr. Anuj JainNon Executive Director
Ms. Geeta Kalyandas FulwadayaNon Executive Director
Mr. Saurabh SanchetiNon Executive Director
Mr. Rahul Yogendra DuttIndependent Director
Ms. Naina Krishna MurthyIndependent Director
Mr. Rajendra Dwarkadas HingwalaIndependent Director
Mr. Siddharth AchuthanIndependent Director

FAQ

What is the latest intrinsic value of Den Networks Ltd?

The latest intrinsic value of Den Networks Ltd as on 17 November 2024 is ₹45.70, which is 5.06% higher than the current market price of ₹43.50.

What is the Market Cap of Den Networks Ltd?

The Market Cap of Den Networks Ltd is 2,076 Cr..

What is the current Stock Price of Den Networks Ltd as on 17 November 2024?

The current stock price of Den Networks Ltd as on 17 November 2024 is ₹43.5.

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

In FY 2024, the High / Low of Den Networks Ltd stocks is 69.4/42.2.

What is the Stock P/E of Den Networks Ltd?

The Stock P/E of Den Networks Ltd is 9.47.

What is the Book Value of Den Networks Ltd?

The Book Value of Den Networks Ltd is 73.7.

What is the Dividend Yield of Den Networks Ltd?

The Dividend Yield of Den Networks Ltd is 0.00 %.

What is the ROCE of Den Networks Ltd?

The ROCE of Den Networks Ltd is 7.30 %.

What is the ROE of Den Networks Ltd?

The ROE of Den Networks Ltd is 6.42 %.

What is the Face Value of Den Networks Ltd?

The Face Value of Den Networks Ltd is 10.0.

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 Den Networks 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