Raj Television Network Limited — financial distress indicators
Financial-health summary
Raj Television Network Limited's reported numbers place it in the 'Watch' financial-health band (distress score 47/100). The main indicators are market-implied default probability >20%, revenue collapse and thin interest coverage. Independently, the Ohlson accounting model puts its 1-year failure probability at 28% and the market-implied (Merton) default probability is 22.2%. In its favour: operating cash flow is positive over the latest 12 months.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Merton distance-to-default 0.77 σ → PD 22%.
Structural (Merton/KMV) model: equity is a call option on assets; low distance-to-default means assets are close to the default point.
Revenue changed -44% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
Interest coverage is only 1.20× (lenders typically require ≥ 2–3×).
Low coverage leaves little buffer against a profit dip before a debt-service or covenant breach.
Price is -82% from its 52-week high.
Equity markets price distress early; collapses of this size usually reflect fear of wipe-out in a restructuring.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
- High insider/promoter ownership (85%) aligns management with survival.
📰 Recent news scan
- Kiran Kumar Jain sells 2.69% stake in Raj TV Network - scanx.tradeGoogle News · 2026-10-22
- Raj Television Network Share Price and Stock Analysis - Kalkine IndiaGoogle News · 2026-10-14
- Kiran Kumar Jain M. sells 4.79 lakh shares in Raj TV Network - scanx.tradeGoogle News · 2026-10-12
- Raj Television Network (RAJTV.NS) Slips 1.42% to ₹10.44 as Stock Tests Lower Support Zone - EMA Signal - siam.inGoogle News · 2026-09-29
- Why Is Raj Television Network Share Price Falling Key Reasons 2026 - UnivestGoogle News · 2026-06-24
⚖️ Indian legal pathway — the IBC, 2016
How insolvency starts
- A financial creditor (§7), an operational creditor after a demand notice (§§8–9) or the company itself (§10) can apply to the NCLT once a default of at least ₹1 crore occurs (§4).
- On admission a moratorium (§14) stops suits and recovery; the board is suspended and an insolvency professional runs the company.
- The Committee of Creditors approves a resolution plan with 66% of voting share (§30(4)) within an outer limit of 330 days (§12); otherwise liquidation (§33) under the §53 waterfall — equity ranks last. Defaulting promoters are generally barred from bidding (§29A).
Earlier warning stages
- RBI's Prudential Framework for Resolution of Stressed Assets (7 June 2019): lenders must review a borrower within 30 days of default and implement a resolution plan, or provide more.
- Listed companies must disclose loan defaults to exchanges under SEBI (LODR); a rating downgrade to “D” is a public signal.
- Auditors must report going-concern uncertainty (SA 570 / Ind AS 1).
Frequently asked questions
What do Raj Television Network Limited's financial-health indicators show?
As of 2026-10-24, Raj Television Network Limited's public financial data places it in the 'Watch' band with a distress score of 47/100, driven by market-implied default probability >20%, revenue collapse and thin interest coverage. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Raj Television Network Limited's financial distress score?
47/100 ('Watch'). Ohlson O-score -0.96 (model 1-year failure probability 28%). Merton distance-to-default 0.77 σ (model default probability 22.2%).
What works in Raj Television Network Limited's favour?
Operating cash flow is positive over the latest 12 months. High insider/promoter ownership (85%) aligns management with survival.
How are shareholders treated if a company enters insolvency?
Under the IBC the Committee of Creditors controls the resolution; the §53 waterfall pays secured creditors and workers first and equity last. In most resolution plans existing shareholders are wiped out or left with a token stake, and the company may be delisted.
Other Telecom & Media companies with distress indicators
- Diligent Media Corporation Limited (DNAMEDIA)Very weak 100/100
- Mahanagar Telephone Nigam Limited (MTNL)Very weak 100/100
- Radaan Mediaworks India Limited (RADAAN)Very weak 100/100
- Reliance Communications Limited (RCOM)Very weak 100/100
- SITI Networks Limited (SITINET)Very weak 100/100
- Tips Films Limited (TIPSFILMS)Very weak 97/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.