SITI Networks Limited

Communication Services — Entertainment · BSE

₹0.49₹0.00 (0.00%)

DalalBaazaar Score

19 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, but sales are shrinking. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of SITI Networks Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

SITI Networks Limited, a multi-system operator, distribution of television channels through digital cable distribution network and allied services in India. Its products include digital and analogue cable television, broadband, and local television channels.

IndustryEntertainment

SectorCommunication Services

Annual revenue₹1,179 Cr

How does it make money?

Turns over ₹1,179 Cr a year. Of every ₹100 of sales, about ₹-18 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are BHARTI AIRTEL LIMITED, VODAFONE IDEA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -17% while net margin moved +0% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-17%

Margin effect+0%

DalalBaazaar Score

19/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

18/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

44.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 22% over 3 years.
Cash generation is improving
Free cash flow is up 26% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only -1.1x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹209 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 13.3 points, from 14.7% to 1.4%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -1.6x to -1.1x.
🟡Inventory building faster than salesFinancial
Inventory up 37% against revenue up -17% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.30 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 22% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from 14.7% to 1.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 46.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -1%✓ 1.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 46.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ -1.1x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹35 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

2 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 4 neutral · 6 weak

Market Cap

₹43 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-2.29

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

-12.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-13.9%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹35 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-9.6%

Weak

Thin margins leave little room for error

Net Margin

-18.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.30

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.04

Defensive

Steadier than the market

52W Range Position

NaN%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

0.5 / 0.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹1,424 Cr	₹1,321 Cr	₹1,291 Cr	₹1,179 Cr	-6.1%
EBITDA	₹209 Cr	₹155 Cr	₹58 Cr	₹17 Cr	-57.1%
EBITDA Margin	14.7%	11.7%	4.5%	1.4%	—
PAT (Net Profit)	-₹252 Cr	-₹280 Cr	-₹184 Cr	-₹209 Cr	—
EPS	₹-2.89	₹-3.62	₹-2.35	₹-2.45	—
Total Debt	₹983 Cr	₹919 Cr	₹773 Cr	₹772 Cr	-7.8%
Free Cash Flow	₹28 Cr	₹139 Cr	₹235 Cr	₹35 Cr	+8.0%

🔴 Revenue has shrunk at 6.1% a year over 3 years.

🔴 EBITDA has shrunk at 57.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 14.7% to 1.4% over 3 years (-13.3 pts).

🟢 Total Debt has shrunk at 7.8% a year over 3 years.

🟢 Free Cash Flow has grown at 8.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹1,315 Cr

Total Liabilities

₹2,461 Cr

Cash & Equivalents

₹80 Cr

Operating Cash Flow

₹83 Cr

Capex

-₹48 Cr

Shareholding (proxy)

Institutional Holding

2.4%

Insider Holding

9.4%

Peer Comparison

Company	P/E	ROE
BHARTI AIRTEL LIMITED	39.8x	20.2%
VODAFONE IDEA LIMITED	3.6x	—

Recent News

1 mixed5 general

SITI NETWORKS Share Price

Upstox, 16 Oct

Siti Networks Share Price Forecast to 2030

Univest, 29 Jul

Siti Networks Ltd Locks at Upper Circuit With 4.35% Gain — Buyers Queue, Sellers Absent

MarketsMojo, 14 Oct

SITI Networks NSE:SITINET Reg 74(5) Depository Certificate Q2 FY27

Kalkine India, 14 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Siti Networks Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

Siti Networks (SITINET.NS) Slips 3.57% to ₹0.27 as Counter Tests ₹0.26 Support Zone - FRAMA Signal

https://www.siam.in/, 11 Sept

Watch Items

Revenue growth is negative (-12.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

SITI Networks Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑