Check Before You Invest : Den Networks Ltd

Q: 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: Is Den Networks Ltd a good quality company?

Den Networks 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: Is Den Networks Ltd undervalued or overvalued?

Den Networks Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than 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. Price to Earnings, Current: 10.52, Historic Median: 10.68. Price to Book, Current: 0.34, Historic Median: 0.56. Price to Sales, Current: 1.29, Historic Median: 1.69. EV to EBITDA, Current: -7.75, Historic Median: 4.25

Q: 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

Q: 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: 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: 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: Net Profit Margin of Den Networks Ltd?

Den Networks Ltd Net Profit Margin is 11.87% for FY-2025, is below its 5-year median of 16.98%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 23.4, Historic Median: 24.2. Operating Profit Margin (%), Current: 0.7, Historic Median: 2.52. Net Profit Margin (%), Current: 11.87, Historic Median: 16.98

Q: 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: 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.

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 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 Den Networks Ltd undervalued or overvalued?

Den Networks Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than 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	10.52	10.68
Price to Book	0.34	0.56
Price to Sales	1.29	1.69
EV to EBITDA	-7.75	4.25

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

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 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 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.3 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.4 Net Profit Margin of Den Networks Ltd?

Den Networks Ltd Net Profit Margin is 11.87% for FY-2025, is below 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x)	0.24	0.3
ROE (%)	3.2	6.23
ROCE (%)	4.38	5.93
Cash Conversion Cycle	-62 days	-58 days

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

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

Den Networks Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.10, 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

D: Promoter shareholding and pledge status of Den Networks Ltd?

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)

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

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 -2.11%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-4.4	-2.1
Gross Profit Growth (%)	-17.2	-2
Operating Profit Growth (%)	0	-1.3
Net Profit Growth (%)	-33.5	2.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.24	0.47
ROE (%)	3.2	0.98
ROCE (%)	4.38	1.68
Cash Conversion Cycle (days)	-61.67	-1

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 -11.1% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-11.1%	-10.6%	-3.2%	-21.9%

Q.2 Valuation ratios of Den Networks Ltd vs historical?

The current P/E ratio of 10.52 is in line with than its historical median of 10.68, 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	10.52	10.68	21.49
Price to Book	0.34	0.56	1.40
Price to Sales	1.29	1.69	2.27
EV to EBITDA	-7.75	4.25	9.85

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Check Before You Invest : Den Networks Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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