Reliance Group, an Indian conglomerate chaired by Mukesh Ambani, has diversified its investments into sectors like telecom, retail, and media. The group’s company includes companies like Den Networks, a leading cable and broadband provider, and Lotus Chocolate, a manufacturer of premium chocolates. Both companies have recently released their quarterly reports for the third quarter of FY25.
DEN Networks
DEN Networks Limited was founded in 2007, and is a Multi-System Operator (MSO) in India, providing digital cable television and broadband services. The company serves over 13 million households across 200 cities, primarily in key states like Uttar Pradesh, Delhi, and Karnataka. Its business model focuses on delivering diverse content through partnerships with major broadcasters and also offers OTT services.
Price Movement
With a market capitalization of Rs. 1,856.40 Crores, the shares of Den Networks Limited touched a day’s high of Rs. 39.5 per equity share, up 2.99 percent. The stock reiterated from the day’s high and was trading at Rs. 38.9 which is 1.43 percent higher than the previous day’s close price of Rs. 38.35. The stock delivered a negative return of 37.49 percent and underperformed the Nifty Index in the past year.
Q3FY25 Results
In its latest filing for the quarter ending December 2024, the company reported a 4.48 percent fall in revenue, reaching Rs.260.70 crore compared to Rs.272.93 crore in Q3FY24. On a quarter-over-quarter basis, the operational revenue grew by 4.66 percent from Rs.249.08 crore in Q2FY25.
During the same period, net profit declined by 12.38 percent to Rs.41.92 crore in Q3FY25, compared to Rs.47.85 crore in Q3FY24, and declined by 18.81 percent from Rs.51.64 crore in Q2FY25.
Regarding return ratios, the return on equity (ROE) stands at around 0.36 percent. The Net profit margin for FY24 stood at 1.36 percent. The stock is trading at a P/E (Price to Earnings) ratio of around 8.18, which is lower than the industry average of 43.44 times. The company also boasts a strong current ratio of 3.47 and a debt-to-equity ratio of 0.01.
Lotus Chocolate Company
Lotus Chocolate Company Limited was established in 1989. The company specializes in chocolates, cocoa products, and derivatives. They operate in an integrated facility near Hyderabad, utilizing advanced technology for cocoa processing and chocolate production. Their business model focuses on supplying high-quality chocolate products to various sectors, including food service and retail.
Price Movement
With a market capitalization of Rs. 1,564.55 Crores, the shares of Lotus Chocolate Company Limited touched a lower circuit limit of Rs. 1,218.40 per equity share, down 5.00 percent. The stock has been in lower circuit limit in the market hours which is 5 percent lower from its previous day’s close price of Rs. 1,282.50. The stock delivered a multi-bagger return of 280.22 percent and outperformed the Nifty Index in the past year.
Q3FY25 Results
In its latest filing for the quarter ending December 2024, the company reported an 182.67 percent rise in revenue, reaching Rs.146.69 crore compared to Rs.51.89 crore in Q3FY24. On a quarter-over-quarter basis, the operational revenue rose by 14.34 percent from Rs.128.29 crore in Q2FY25.
During the same period, net profit increased by 515.70 percent to Rs.3.71 crore in Q3FY25, compared to Rs.0.60 crore in Q3FY24, and fell by 29 percent from Rs.5.23 crore in Q2FY25.
The Net profit margin for FY24 stood at -0.01 percent. The company also boasts a strong current ratio of 2.03 and a debt-to-equity ratio of 0.16.
Written by Santhosh S
