Saturday, May 22, 2021

NxtDigital Ltd (500189) – Reducing Debt

NxtDigital Ltd (500189) closes   at 529.35  with  a   Gain  of   +1.00%   on    21-May-2021  with formation of  a  Small  Red  Candle    on Daily  Price Chart.

About the Company : NXTDIGITAL Limited (formerly known as Hinduja Ventures Limited), a part of the Hinduja Group is engaged in the distribution of TV signals both through Cable and Satellite and also provides broadband services through its subsidiary ONEOTT Intertainment Limited (OIL)

Strength : 1. Reducing Debt by disposing land & Property of Rs.250.00Cr in Bangalore & Hydrabad in this currency fiscal year.

2.Rights Issue of Rs. 300.00 Cr approved recently.

3.Debt to Equity to be below 1.

4.The company has identified two growth drivers: Infrastructure sharing or platform as a sercive (PaaS) model and strategic allinace partnerships to increase broadband pentration.

.Financials : NxtDigital Ltd has posted Net Sales / Revenue   of 975.00 Cr & Net Loss of 29.00 Cr in FY2021 .

Valuations  : The Company is now in Loss and  our valuations method works only with Profit making companies. We express our inability to value the company right now.

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  -0.8 ; which implies that 20% Fall in CMP will make it attractive for investment . The  Equity Value Per Share ( Enterprise Value Method ) is  483.10.

Net Debt / EBITDA ( Debt pay Capacity by Co. in Years:  > 4 is Alarming ) is 4.1  for FY2021.

 

Disclaimer : We are / may going to take exposure shortly.

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