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Check Before You Invest : Diksat Transworld Ltd

BSE: 540151 NSE: ISIN: INE942P01013
  |   Sector:  Media   |   Industry:  TV Broadcasting & Software Production

Snapshot

Q.1 Which industry/sub-sector does Diksat Transworld Ltd belong to?
Diksat Transworld Ltd belongs to the Media sector, operating specifically within the TV Broadcasting & Software Production segment.
Q.2 Is Diksat Transworld Ltd a good quality company?
Diksat Transworld 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 Diksat Transworld Ltd undervalued or overvalued?
Diksat Transworld Ltd appears Overvalued, as its key valuation ratios are higher 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 3402.5 239.45
Price to Book 8.68 9.70
Price to Sales 48.39 7.37
EV to EBITDA 166.14 108.37
Q.4 Is Diksat Transworld Ltd a good buy now?
Diksat Transworld Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. 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 Diksat Transworld Ltd?
Diksat Transworld Ltd revenue growth is -76% for FY-2025, which is below its 5-year CAGR of -2.11%, indicating slower growth.

Q.2 Gross Profit margin of Diksat Transworld Ltd?
Diksat Transworld Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.4% for FY-2025, which is above its 5-year median of 7.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Diksat Transworld Ltd?
Diksat Transworld Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 29.67% for FY-2025, which is above its 5-year median of 6.22% indicating increasing margins.

Q.4 Net Profit Margin of Diksat Transworld Ltd?
Diksat Transworld Ltd Net Profit Margin is 1.42% for FY-2025, is below its 5-year median of 2.48%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 11.4 7.9
Operating Profit Margin (%) 29.67 6.22
Net Profit Margin (%) 1.42 2.48

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Diksat Transworld Ltd?
Diksat Transworld Ltd Return on Asset is 0.2%, which is below its 5-year historical median of 1.85%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Diksat Transworld Ltd?
Diksat Transworld Ltd Return on capital employed is 2.83% for FY-2025, which is in line with its 5-year historical median of 2.83%. 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 Diksat Transworld Ltd?
Diksat Transworld Ltd Return on equity is 0.26% for FY-2025, which is below its 5-year historical median of 3.78%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Diksat Transworld Ltd?
Diksat Transworld Ltd Cash conversion cycle is 1365 days, above its 5-year historical median of 236 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.14 0.54
ROE (%) 0.26 3.78
ROCE (%) 2.83 2.83
Cash Conversion Cycle 1365 days 236 days

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

Q.9 Debt to Equity ratio of Diksat Transworld Ltd?
Diksat Transworld Ltd Debt-to-Equity ratio is 0.23, which is above the industry average of 0.10, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Diksat Transworld Ltd?
Diksat Transworld Ltd Debt to cash flow from operations is -1.47, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Diksat Transworld Ltd?

Q.1 Promoter shareholding and pledge status of Diksat Transworld Ltd?
Promoters hold 71.49% of the Diksat Transworld Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Diksat Transworld Ltd vs industry peers?
Diksat Transworld Ltd revenue CAGR is -2.11%, compared to the industry median CAGR of -2.11%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -76 -2.1
Gross Profit Growth (%) -50 -2
Operating Profit Growth (%) 0 -1.3
Net Profit Growth (%) -100 2.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.14 0.47
ROE (%) 0.26 0.98
ROCE (%) 2.83 1.68
Cash Conversion Cycle (days) 1364.79 -1

Valuation & price assessment

Q.1 Stock return of Diksat Transworld Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 11.27% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 11.3% -1.3% -10%
Q.2 Valuation ratios of Diksat Transworld Ltd vs historical?
The current P/E ratio of 3402.5 is higher than its historical median of 239.45, indicating that the stock is trading above 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 3402.5 239.45 21.49
Price to Book 8.68 9.70 1.40
Price to Sales 48.39 7.37 2.27
EV to EBITDA 166.14 108.37 9.85

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