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Check Before You Invest : Digicontent Ltd

BSE: 542685 NSE: DGCONTENT ISIN: INE03JI01017
  |   Sector:  Media   |   Industry:  Printing And Publishing

Snapshot

Q.1 Which industry/sub-sector does Digicontent Ltd belong to?
Digicontent Ltd belongs to the Media sector, operating specifically within the Printing And Publishing segment.
Q.2 Is Digicontent Ltd a good quality company?
Digicontent Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Digicontent Ltd undervalued or overvalued?
Digicontent Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - -
Price to Book 8.27 2.23
Price to Sales 156.47 80.93
EV to EBITDA -545.08 -69.22
Q.4 Is Digicontent Ltd a good buy now?
Digicontent Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Digicontent Ltd?
Digicontent Ltd revenue growth is -18.4% for FY-2025, which is above its 5-year CAGR of -39.26%, indicating faster growth.

Q.2 Gross Profit margin of Digicontent Ltd?
Digicontent Ltd Gross profit margin which is the profit after deduction of direct costs, is -1100.8% for FY-2025, which is in line with its 5-year median of -1088.8%, indicating stable margins.

Q.3 Operating Profit Margin of Digicontent Ltd?
Digicontent Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -156.59% for FY-2025, which is above its 5-year median of -215.82% indicating increasing margins.

Q.4 Net Profit Margin of Digicontent Ltd?
Digicontent Ltd Net Profit Margin is -1100.78% for FY-2025, is in line with its 5-year median of -1091.79%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -1100.8 -1088.8
Operating Profit Margin (%) -156.59 -215.82
Net Profit Margin (%) -1100.78 -1091.79

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Digicontent Ltd?
Digicontent Ltd Return on Asset is -10.16%, which is below its 5-year historical median of -8.69%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Digicontent Ltd?
Digicontent Ltd Return on capital employed is -0.77% for FY-2025, which is above its 5-year historical median of -1.87%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Digicontent Ltd?
Digicontent Ltd Return on equity is -40.64% for FY-2025, which is below its 5-year historical median of -22.37%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Digicontent Ltd?
Digicontent Ltd Cash conversion cycle is -8 days, in line with its 5-year historical median of -8 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.01 0.01
ROE (%) -40.64 -22.37
ROCE (%) -0.77 -1.87
Cash Conversion Cycle -8 days -8 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Digicontent Ltd?
Digicontent Ltd Debt-to-Equity ratio is 3.54, which is above the industry average of 0.12, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Digicontent Ltd?
Digicontent Ltd Debt to cash flow from operations is -45.6, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Digicontent Ltd?

Q.1 Promoter shareholding and pledge status of Digicontent Ltd?
Promoters hold 66.81% of the Digicontent Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Digicontent Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Digicontent Ltd vs industry peers?
Digicontent Ltd revenue CAGR is -39.26%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -18.4 0
Gross Profit Growth (%) 0 -0.7
Operating Profit Growth (%) 0 0.3
Net Profit Growth (%) 0 6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.01 0.48
ROE (%) -40.64 1.46
ROCE (%) -0.77 5.77
Cash Conversion Cycle (days) -8.2 60

Valuation & price assessment

Q.1 Stock return of Digicontent Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 34.17% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 34.2% 26.3% -10%
Q.2 Valuation ratios of Digicontent Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 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 - - 13.31
Price to Book 8.27 2.23 1.11
Price to Sales 156.47 80.93 1.88
EV to EBITDA -545.08 -69.22 9.67

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