Digicontent Ltd. (DGCONTENT) AI Stock Analysis

• Market Cap: ₹1.98B
• Dividend Yield: N/A
• Average Volume (3M): 4.71K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.68
• Revenue Growth: 4.75%
• EPS Growth: 291.37%
• Country: IN
• Employees: 18
• Sector: Services
• Sector Strength: N/A
• Industry: Internet Content & Information
• EPS (TTM): -0.40
• Shares Outstanding: 58,187,080
• 10 Day Avg. Volume: 5,516
• 30 Day Avg. Volume: 4,711
• PEG Ratio: 0.03
• Price to Book (P/B): 8.38
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 4.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹39.00
• Price Target Upside: 14.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ₹39.00 ▲(14.67% Upside)

The overall stock score reflects the interplay of mixed financial performance, bearish technical indicators, and relatively attractive valuation. Revenue growth and improved profitability are offset by declining gross profit and high financial leverage. Technical analysis indicates bearish momentum, while valuation metrics suggest potential undervaluation.

Digicontent Ltd. Business Overview & Revenue Model

Company Description

Digicontent Ltd. (DGCONTENT) is a digital content creation and distribution company specializing in high-quality multimedia solutions for businesses across various sectors, including marketing, entertainment, and education. The company provides a range of services, including video production, graphic design, content strategy, and social media management, aimed at helping clients enhance their online presence and engage their target audiences effectively.

How the Company Makes Money

DGCONTENT generates revenue primarily through service fees charged for its digital content creation services. This includes project-based fees for video and graphic design work, as well as retainer agreements for ongoing content management and strategy services. Additionally, the company may earn income through licensing agreements for proprietary content and partnerships with businesses that require tailored multimedia solutions. Key revenue streams are bolstered by collaborations with marketing agencies and educational institutions, which often require specialized content services, thus expanding DGCONTENT's market reach and client base.

Digicontent Ltd. Financial Statement Overview

Summary

Mixed financial performance with revenue growth and improved net profit margins in 2025, but challenges include declining gross profit, high leverage, and weak equity positions. Strong cash flow provides liquidity buffer.

Income Statement

The company shows a mixed performance in its income statement. Despite revenue growth from 2024 to 2025, there is a sharp decline in Gross Profit Margin due to a significant drop in gross profit. The Net Profit Margin improved substantially in 2025, indicating better cost control or operational efficiencies. However, the historical fluctuations in EBIT and EBITDA margins highlight underlying volatility, suggesting inconsistent profitability.

Balance Sheet

The balance sheet indicates a high debt level relative to equity, as reflected by the unfavorable Debt-to-Equity ratio, though the debt has decreased over time. The equity position remains weak, as seen by the low equity ratio, suggesting potential financial instability. Return on Equity has improved in 2025, but the historical negative equity in some years is concerning.

Cash Flow

Cash flow statements show substantial improvement, with positive Free Cash Flow and Operating Cash Flow. The Free Cash Flow growth rate from 2024 to 2025 is strong, indicating effective cash management. The Free Cash Flow to Net Income ratio is healthy, suggesting that the company is generating adequate cash relative to its net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.49B	4.43B	4.14B	3.49B	3.24B	2.49B
Gross Profit	2.50B	1.29B	1.94B	808.50M	3.24B	2.49B
EBITDA	562.60M	651.20M	487.10M	203.50M	618.20M	312.50M
Net Income	212.90M	243.10M	57.40M	-128.50M	210.50M	-435.90M
Balance Sheet
Total Assets	0.00	2.26B	2.39B	2.26B	1.74B	1.60B
Cash, Cash Equivalents and Short-Term Investments	303.90M	303.90M	296.20M	336.10M	633.60M	394.50M
Total Debt	0.00	1.11B	1.57B	1.53B	684.50M	902.40M
Total Liabilities	-273.30M	1.99B	2.38B	2.32B	1.68B	1.73B
Stockholders Equity	273.30M	273.30M	11.50M	-59.30M	55.90M	-135.60M
Cash Flow
Free Cash Flow	0.00	529.60M	126.30M	216.30M	364.50M	653.10M
Operating Cash Flow	0.00	617.60M	226.10M	245.90M	388.70M	670.90M
Investing Cash Flow	0.00	-216.80M	-24.60M	303.70M	-217.10M	-404.80M
Financing Cash Flow	0.00	-439.00M	-179.10M	-548.00M	-354.60M	-160.70M

Digicontent Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DGCONTENT, the sentiment is Negative. The current price of 34.01 is below the 20-day moving average (MA) of 35.82, below the 50-day MA of 37.35, and below the 200-day MA of 44.35, indicating a bearish trend. The MACD of -0.80 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 12.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DGCONTENT.

Digicontent Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAGFILMS	60 Neutral	₹1.36B	20.44	―	―	2.59%	10.70%
SAMBHAAV	56 Neutral	₹1.36B	408.00	―	―	-1.16%	-85.54%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
DGCONTENT	54 Neutral	₹1.98B	9.29	―	―	4.75%	291.37%
RADIOCITY	53 Neutral	₹2.80B	52.27	―	―	-4.64%	-554.70%
CYBERMEDIA	44 Neutral	₹378.48M	―	―	―	-8.71%	-1331.38%