Vashu Bhagnani (532011)
CyclicalFairStock Score: 37/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹267.4 |
| Market Cap | ₹1,482.43 Cr |
| P/E Ratio | 52.37 |
| ROCE | 5.26% |
| ROE | -1.86% |
| Dividend Yield | 0% |
| Profit Growth | 771.74% |
| Debt/Equity | — |
| Sales Growth | 700% |
| 52-Week Range | ₹47 — ₹267.4 |
| Sector | Entertainment |
| Book Value | ₹18.14 |
Strengths
- Reported sales growth of 700.00% and profit growth of 771.74% shows recent momentum.
- Piotroski F-Score of 7/9 suggests several fundamental metrics are improving.
- Latest quarter is profitable: ₹9 Cr sales and ₹3 Cr net profit.
- PEG of 0.07 is optically cheap if the reported growth persists.
Concerns
- P/E of 52.37 and P/B of 14.74 are very expensive against book value of ₹18.14 and earnings power.
- ROE is negative at -1.86% and ROCE is only 5.26%, indicating poor capital productivity.
- Zero dividend yield gives no return to minority shareholders while waiting.
- Latest quarter absolute profit of ₹3 Cr is small relative to ₹1,482 Cr market cap; promoter holding is not disclosed.
AI Analysis
Let me begin with what the numbers actually tell me. At ₹267.40, the stock sells for 14.74 times book value of ₹18.14, and it trades at 52.37 times earnings. A film production house with no durable product, no pricing power, and no visible moat cannot justify that multiple. The 700% sales growth and 771.74% profit growth are eye-catching, but I have seen this movie before: tiny base, one good release, and suddenly everyone thinks the company is a compounder. The latest quarter reports only ₹9 Cr of sales and ₹3 Cr of net profit. That is not the earnings machine the market cap of ₹1,482 Cr implies. The Piotroski F-score of 7/9 is a point in favor, and the PEG of 0.07 looks cheap—but a PEG built on one year of explosive film-linked earnings is unreliable. ROE is negative at -1.86%, ROCE is just 5.26%, and the dividend yield is zero. I get no cash while I wait, and the business is earning a poor return on capital. In film production, each film is a new venture; the last blockbuster does not guarantee the next one. With promoter holding shown as N/A, I cannot assess whether the insiders are aligned with me. This is a speculative, hit-driven cyclical, not a predictable franchise. I need a margin of safety; at this price, there is none. Graham would say price is what you pay, value is what you get. Here, I am paying a great deal and getting very little. I would pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer