Den Networks Near Record Lows Ahead Of Q1 Results: SEBI RA Flags Critical Support At ₹38

Den Networks is trading near a multi-year low, with shares hovering close to the ₹35–₹38 support zone after falling over 85% from an all-time high of ₹254. 

The company’s first quarter (Q1) earnings, due Monday, could prove pivotal for investors watching for signs of a potential reversal or further downside.

SEBI-registered analyst Rohit Mehta noted that while Den remains in a long-term downtrend, the stock is currently testing a zone that has acted as strong support multiple times in the past. 

Mehta flagged ₹115, ₹188.50, and ₹254.05 as key resistance levels if any reversal begins to form. He said the chart is showing early signs of base formation, though heavy overhead resistance persists.

On the fundamental front, Mehta highlighted mixed signals. 

Promoter ownership in Den Networks stayed unchanged at 74.91% between December 2024 and March 2025. 

During the same period, foreign investors inched up their stake from 0.74% to 0.82%, while domestic institutional investors trimmed theirs slightly from 0.20% to 0.14%.

For the March 2025 quarter, revenue slipped nearly 4% both year-on-year and sequentially. 

Operating profit saw a steep 30% drop in Q4 compared to last year, though it inched up 3.7% from the previous quarter. Profit before tax remained flat at ₹69 crore year-on-year but jumped 25.45% sequentially. EPS fell 21.69% year-on-year but improved 54.76% quarter-on-quarter.

According to Mehta, Den has some notable positives — it’s virtually debt-free, trades at just 0.5x book value, and has delivered a 5-year profit compounded annual growth rate (CAGR) of 35.7%. 

However, structural concerns remain, including no dividend payouts, weak revenue growth (4.88% CAGR), low return on equity (6%), and rising debtor days and working capital stretch, which may pressure cash flows.

On Stocktwits, retail sentiment was ‘neutral’ amid ‘high’ message volume.

The stock has declined/ 11.8% so far in 2025.

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