Imagica. Enter. (IMAGICAA)
TurnaroundFairStock Score: 14/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹47.66 |
| Market Cap | ₹2,696.9 Cr |
| P/E Ratio | 190.64 |
| ROCE | 7.44% |
| ROE | 2.75% |
| Dividend Yield | 0% |
| Profit Growth | 22.9% |
| Debt/Equity | 0.27 |
| Sales Growth | 12.64% |
| Promoter Holding | 74.02% |
| 52-Week Range | ₹36.84 — ₹58.52 |
| Sector | Leisure Services |
| Book Value | ₹31.6 |
Strengths
- Low leverage with debt/equity of 0.15 provides a financial cushion.
- Promoter holding of 74.02% shows majority owner commitment.
- Positive book value of ₹19.63 offers some asset backing.
- Latest quarter sales of ₹92 Cr indicate an existing revenue base.
Concerns
- Latest quarter net loss of ₹5 Cr and profit growth of -284.85% are deeply troubling.
- P/E of 154.48 and PEG of 643.67 imply extreme overvaluation against weak earnings.
- ROE of 2.75% and ROCE of 7.44% reflect poor capital efficiency.
- Zero dividend yield and Piotroski F-score of 4/9 signal weak shareholder returns and financial health.
AI Analysis
Imagica fails my first test: a business I can understand and that generates consistent returns on capital. This is an amusement park—high fixed costs, discretionary spending, and little pricing power. The numbers confirm my caution. Return on equity is just 2.75%, and ROCE is 7.44%, hardly enough to attract a rational owner. Sales growth is 0.24%, so the top line is flat; the latest quarter revenue of ₹92 Cr still produced a net loss of ₹5 Cr. Profit growth collapsed by 284.85%. A P/E of 154.48 is meaningless when earnings are near zero, and the PEG ratio of 643.67 is absurd. The only bright spots are conservative leverage: debt/equity of 0.15, and promoter holding of 74.02%, which aligns owners with public shareholders to some extent. However, high promoter holding is double-edged; minority investors need discipline and transparency, not just stake. Book value is ₹19.63, yet I am asked to pay ₹48.02, or 2.45 times book, for a business earning a 2.75% ROE. That offers no margin of safety. The Piotroski F-score of 4/9 indicates weak fundamentals, and the FairStock Score of 0/100 is a red flag. No dividend means shareholders get no compensation while waiting. In Buffett's terms, this is a poor business at a price that assumes improvement. I cannot value it with confidence; I need a margin of safety, not hope. If operations turn around, I would want evidence like positive quarterly profit, higher ROCE, and real sales growth before considering an investment. Until then, this belongs in the 'too hard' pile.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer