This is the first time I am starting the thread, but I am diverging from the usual aspect of running the entire business story, since my investment thesis is based purely on balance sheet. Risks are highlighted with respect to my thesis, rather than that for business. I have started the thread because I couldn’t find other for this company. Also, seniors and moderators, I am not sure about the categorization since I am not betting on earnings growth of this stock. Sincere apologies for missing if such categorization exists

1. Den Networks is majorly hold by Reliance (~67%), followed by ~7-8% by founder promoter Mr. Sameer Manchanda

2. The business has generated good amount of cash from operations, with historical performance as follows –

Its balance sheet currently is as follows –

Its current Market Cap = ~2380 Cr

So, considering only net cash in hand and quoted investments amount to ~INR 2515 Cr, do we have a graham style bet? Where a business generating ~INR 200 Cr profit year on year is available for free? In my opinion, considering market won’t give much terminal value to cable network business, this should go for a PE of maybe 6-7? That itself- gives target market cap of ~3800-4000 Cr

Risks:

1. Reliance holding – Not sure how and what they will do if they choose to take this private. I am not sure about their intentions for minority shareholders
2. Wrong about terminal value assumptions – Maybe 6-7 PE for business is also too optimistic and it won’t be valued at that
3. Lack of some insider info: It has been such a value bet over last 2-3 quarters at least, if we check its balance sheet and market cap. Somehow, it has escaped till now despite presence large number of quantitative formulae based screeners and investors

Request views from everyone. I am not invested yet since I am not sure why such a bet will exist for so long, and hence I think there is some point I am missing

Disclaimer: I am not invested in this yet, but have been tracking for some time now.

People want financial independence. Some come here for great investment ideas to accomplish FIRE, some build great businesses and some get lucky when they inherit it from their ancestors (cough cough).

This management got that FIRE without FIRE in the belly. I am no expert by any means but having listened to enough promoters, I am yet to come across anyone as clueless as this one. If munna bhai asked circuit for every simple question that someone asks, movie would have been a flop. This one is.

I was invested in this one for a few quarters and then moved my money to technoplast. Zero regrets. Now I come here just for lulz.

PS: Sincere apologies if i am hurting anyone’s feelings. I would delete this non-value adding post later.

Results look great but I would be better to have more communication from management for example on the contribution from the new 200 bed maternity care unit. For now this is what we know from their investor presentation “Further, we are happy to announce the operationalization of its new facility of an additional 200 beds focused on providing Mother and Child Care services from January 29, 2024.”

This means we should have had 2 months of performance from this unit being included in FY2024 results.
Disc: Invested in 2024

March 24 was fantastic year with Highest ever Sales of 177 crore and Profit After Tax of 30 crore having EPS of 1.86

Fixed assets jumped significantly from 84 crore to 206 crore

Source: x.com