Check Before You Invest : Den Networks Ltd

Snapshot

Q.1 Which industry/sub-sector does Den Networks Ltd belong to?

Den Networks Ltd belongs to the Media sector, operating specifically within the TV Broadcasting & Software Production segment.

Q.2 Is Den Networks Ltd a good quality company?

Den Networks Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Den Networks Ltd undervalued or overvalued?

Den Networks Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Den Networks Ltd a good buy now?

Den Networks Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Den Networks Ltd?

Den Networks Ltd revenue growth is -4.4% for FY-2025, which is below its 5-year CAGR of -3.72%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Den Networks Ltd?

Den Networks Ltd Return on capital employed is 4.38% for FY-2025, which is below its 5-year historical median of 5.93%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Den Networks Ltd?

Den Networks Ltd Return on Asset is 2.86%, which is below its 5-year historical median of 5.23%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Den Networks Ltd?

Den Networks Ltd Return on equity is 3.2% for FY-2025, which is below its 5-year historical median of 6.23%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Den Networks Ltd?

Den Networks Ltd Cash conversion cycle is -62 days, below its 5-year historical median of -58 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.24	0.3
ROE	3.2	6.23
ROCE	4.38	5.93
Cash Conversion Cycle	-62 days	-58 days

Q.6 Gross Profit margin of Den Networks Ltd?

Den Networks Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.4% for FY-2025, which is in line with its 5-year median of 24.2%, indicating stable margins.

Q.7 Operating Profit Margin of Den Networks Ltd?

Den Networks Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.7% for FY-2025, which is below its 5-year median of 2.52% indicating decreasing margins.

Q.8 Net Profit Margin of Den Networks Ltd?

Den Networks Ltd Net Profit Margin is 11.87% for FY-2025, is below with its 5-year median of 16.98%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	23.4	24.2
Operating Profit Margin	0.7	2.52
Net Profit Margin	11.87	16.98

Q.9 Debt to Equity ratio of Den Networks Ltd?

Den Networks Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.28, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Den Networks Ltd?

Den Networks Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Den Networks Ltd?

Promoters hold 74.90% of the Den Networks Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Den Networks Ltd vs industry peers?

Den Networks Ltd revenue CAGR is -3.72%, compared to the industry median CAGR of -2.92%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-4.4	-2.9
Gross Profit Growth	-17.2	-4
Operating Profit Growth	0	-14.4
Net Profit Growth	-33.5	-4.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.24	0.52
ROE	3.2	2.12
ROCE	4.38	2.02
Cash Conversion Cycle (days)	-61.67	-9

Valuation & price assessment

Q.1 Stock return of Den Networks Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -10.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-10.7%	-9%	-4%	-14.3%

Q.3 Valuation ratios of Den Networks Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	10.73	10.68	20.32
Price to Book	0.34	0.56	1.44
Price to Sales	1.32	1.70	2.25
EV to EBITDA	-7.64	4.31	9.67

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