Diligent Media Corp. Ltd. (DNAMEDIA) AI Stock Analysis

• Market Cap: ₹413.16M
• Dividend Yield: N/A
• Average Volume (3M): 48.91K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.27
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 58
• Sector: Services
• Sector Strength: N/A
• Industry: Publishing
• EPS (TTM): -0.06
• Shares Outstanding: 117,708,015
• 10 Day Avg. Volume: 15,187
• 30 Day Avg. Volume: 48,907
• PEG Ratio: -0.05
• Price to Book (P/B): -0.24
• Price to Sales (P/S): 4.35
• P/FCF Ratio: 16.85
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ₹3.50 ▼(-6.17% Downside)

The score is held down primarily by weak financial resilience (negative equity, high debt) and low-quality/volatile profitability with poor cash conversion. Technicals also remain bearish with price below key moving averages and negative MACD. A modest P/E provides some valuation support but is outweighed by the financial and technical risks.

Positive Factors

Revenue Acceleration

Sustained top-line growth (~23% in 2025) indicates improving demand for the company’s content and advertising inventory. Over 2–6 months this can support leverage reduction, better capacity utilisation and provide management room to prioritise profitable segments if cost discipline continues.

Operating Cash Flow Recovery

Return to positive operating and free cash flow improves the firm’s near-term ability to service obligations and fund operations without fresh equity. If the recovery persists, it materially lowers refinancing risk and enables targeted reinvestment or deleveraging over the medium term.

Recognized Brand & Distribution

Association with an established media brand and existing broadcasting/content distribution provides structural advantages: audience reach, ad-sales relationships and distribution leverage that support recurring revenues and strategic partnerships, aiding stable revenue generation over time.

Negative Factors

Negative Shareholder Equity

Persistently negative equity is a structural balance-sheet weakness that limits financial flexibility, increases refinancing risk and constrains strategic options. Over months this reduces tolerance for shocks, raises funding costs and undermines the company’s ability to invest or return capital.

High, Persistent Debt Load

A large, non-deleveraging debt stock (~4.36B) elevates fixed obligations and reduces free cash available for growth. With limited deleveraging progress, interest and refinancing pressures are ongoing structural risks that can constrain margins and capital allocation choices over the medium term.

Volatile, Low-Quality Profitability

Earnings volatility and reliance on non-operating items, while core operating profit (EBIT) was negative across multiple years, signals weak underlying margins. This undermines predictability of cash flows and the durability of profits, complicating long-term planning and investor confidence.

Diligent Media Corp. Ltd. Business Overview & Revenue Model

Company Description

Diligent Media Corporation Limited engages in the online news distribution business in India. It operates a news website, www.dnaindia.com; and an e-paper edition through epaper.dnaindia.com. The company also offers content through DNA Syndication. Diligent Media Corporation Limited was incorporated in 2005 and is based in Mumbai, India.

How the Company Makes Money

Diligent Media Corp. Ltd. Financial Statement Overview

Summary

Despite improved recent revenue growth, earnings quality and resilience are weak: profitability appears driven by non-operating items (net margins extremely high while EBIT was negative in 2022–2024), cash conversion is poor in the latest year (operating cash flow far below net income), and the balance sheet is a major risk with persistently negative equity and very high, flat debt.

Income Statement

Revenue growth accelerated in the latest annual period (up ~23% in 2025 vs. ~flat growth in 2023–2024), which is a positive demand signal. Profitability, however, looks highly volatile and not fully supported by the operating line: net profit margins are extremely high in recent years (including >100% in 2025), while EBIT is negative in 2022–2024 and only modestly positive in 2025, suggesting earnings are likely driven by non-operating items rather than core publishing operations. Gross margin also swung sharply (from ~51% in 2022 to ~11% in 2023–2024 and ~41% in 2025), highlighting inconsistent cost structure and limited operating predictability.

Balance Sheet

The balance sheet is the key weakness: shareholder equity is negative across all periods, which reduces financial flexibility and increases refinancing risk. Total debt remains very high and essentially flat over time (about 4.36B), while assets fluctuate meaningfully, indicating limited deleveraging progress. With negative equity, leverage is structurally elevated and returns to shareholders are not attractive (return on equity is negative in most years), leaving the company more exposed to shocks and higher funding costs.

Cash Flow

Cash generation is inconsistent. The latest year shows positive operating cash flow (~34.0M) and free cash flow (~34.0M), a recovery from the prior year’s negative levels, but the operating cash flow relative to net income is weak in 2025 (roughly 0.09), implying reported earnings are not translating into cash. Earlier years also show large swings (very strong inflows in 2021 and 2023, followed by weak/negative periods), which reduces confidence in steady cash conversion and makes planning and debt servicing more challenging.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	110.16M	131.92M	97.02M	94.44M	64.83M	31.49M
Gross Profit	30.83M	53.47M	45.86M	48.35M	52.35M	31.50M
EBITDA	98.05M	148.84M	1.79B	1.28B	-76.61M	139.39M
Net Income	92.80M	136.19M	1.37B	1.61B	239.46M	-456.17M
Balance Sheet
Total Assets	0.00	2.34B	3.40B	2.29B	2.05B	2.05B
Cash, Cash Equivalents and Short-Term Investments	22.48M	22.48M	5.23M	26.22M	16.77M	293.00K
Total Debt	0.00	4.36B	4.36B	4.36B	4.36B	4.36B
Total Liabilities	2.44B	4.78B	5.97B	6.23B	7.60B	7.84B
Stockholders Equity	-2.44B	-2.44B	-2.57B	-3.94B	-5.55B	-5.79B
Cash Flow
Free Cash Flow	0.00	34.03M	-60.75M	926.93M	6.00M	2.86B
Operating Cash Flow	0.00	34.05M	-60.75M	931.17M	6.00M	2.86B
Investing Cash Flow	0.00	-22.80M	41.15M	-921.72M	10.48M	292.00K
Financing Cash Flow	0.00	0.00	-1.39M	0.00	0.00	-2.90B

Diligent Media Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VHLTD	74 Outperform	₹9.33B	49.27	―	―	-11.23%	-65.46%
SINCLAIR	59 Neutral	₹3.99B	29.15	―	0.94%	-0.10%	-54.46%
SPECIALITY	56 Neutral	₹5.25B	24.39	―	0.87%	6.66%	-21.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
RAJTV	48 Neutral	₹2.06B	-56.86	―	―	―	―
DNAMEDIA	43 Neutral	₹413.16M	10.17	―	―	―	―

Diligent Media Corp. Ltd. Corporate Events

Diligent Media’s Senior Editorial Executive Resigns from DNA

Diligent Media Corporation Limited has announced that Associate News Editor for DNA, Ms. Srishty Choudhury, who is designated as Senior Management Personnel, has resigned from the company effective end of working hours on January 14, 2026, to pursue career opportunities outside the organisation. The departure of a senior editorial figure at DNA marks a change in the company’s senior management ranks and could lead to internal realignments in editorial responsibilities as the media group continues to operate in a highly competitive news and digital content market.

Diligent Media Corp. Publishes Unaudited Financial Results for Q2 2025

Diligent Media Corporation Limited announced the publication of its unaudited financial results for the second quarter and half-year ending September 30, 2025. The results were advertised in two newspapers, ‘Free Press Journal’ and ‘Navshakti’. This announcement is part of the company’s compliance with SEBI regulations, reflecting its commitment to transparency and regulatory adherence. The publication of these financial results is crucial for stakeholders to assess the company’s financial health and performance over the specified period.