Balaji Telefilms (BALAJITELE)
TurnaroundFairStock Score: 32/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹92.38 |
| Market Cap | ₹1,126.13 Cr |
| P/E Ratio | 22.38 |
| ROCE | -1.35% |
| ROE | 5.04% |
| Dividend Yield | 0% |
| Profit Growth | 411.32% |
| Debt/Equity | 0.03 |
| Sales Growth | 217.91% |
| Promoter Holding | 31.8% |
| 52-Week Range | ₹69.52 — ₹141.32 |
| Sector | Entertainment |
| Book Value | ₹51.91 |
Strengths
- Very low leverage with debt/equity of 0.04, so solvency is not an immediate threat.
- P/B of 1.01 means the stock trades essentially at book value, not at a speculative premium.
- Book value per share of ₹99.12 provides a crude asset cushion near the market price.
- Zero dividend payout preserves cash while the business tries to stabilize.
Concerns
- Revenue is down 55.41%, and latest-quarter net loss of ₹25 crore on ₹42 crore sales shows deep operational distress.
- ROCE is negative at -1.35%, and ROE of 5.04% is far too low to compensate for this risk.
- Piotroski F-score of 2/9 signals poor financial health and potentially deteriorating fundamentals.
- Promoter holding of 31.80% is modest, and there is no dividend to hold minority investors while waiting.
AI Analysis
At ₹100.18, Balaji Telefilms carries a market capitalization of ₹1,316 crore, almost exactly equal to its book value of ₹99.12 per share. On the surface, that looks like a Graham-style asset play. But Graham also said price is what you pay, value is what you get. The value here depends on whether the assets can earn a return. Right now, the earnings engine is broken. Revenue has collapsed by 55.41% year on year, profit growth is minus 107.91%, and the latest quarter shows just ₹42 crore of sales with a net loss of ₹25 crore. That is not a bad year; that is a business in distress. The P/E of 22.38 is meaningless if earnings are falling off a cliff. Return on capital employed is negative at -1.35%, and even the reported ROE of 5.04% is far below what I would accept as a long-term owner. The Piotroski F-score of 2 out of 9 tells me the underlying financial signals are poor. To be fair, the company has almost no debt—debt/equity is just 0.04—so it has time, and the price is not excessive relative to book. But time is not a moat. There is no dividend, promoter holding is only 31.80%, and a FairStock score of 0 out of 100 is a loud warning flag. I do not need to catch a falling knife. I would rather wait for evidence that revenue has stabilized and capital can once again earn a positive return. Until then, this is a pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer