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Check Before You Invest : Eros International Media Ltd

BSE: 533261 NSE: EROSMEDIA ISIN: INE416L01017
  |   Sector:  Media   |   Industry:  Film Production, Distribution & Entertainment

Snapshot

Q.1 Which industry/sub-sector does Eros International Media Ltd belong to?
Eros International Media Ltd belongs to the Media sector, operating specifically within the Film Production, Distribution & Entertainment segment.
Q.2 Is Eros International Media Ltd a good quality company?
Eros International Media Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Eros International Media Ltd undervalued or overvalued?
Eros International Media Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - -
Price to Book 0.1 0.19
Price to Sales 0.49 0.49
EV to EBITDA -2.18 -2.18
Q.4 Is Eros International Media Ltd a good buy now?
Eros International Media Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Eros International Media Ltd?
Eros International Media Ltd revenue growth is -54.8% for FY-2025, which is below its 5-year CAGR of -40.01%, indicating slower growth.

Q.2 Gross Profit margin of Eros International Media Ltd?
Eros International Media Ltd Gross profit margin which is the profit after deduction of direct costs, is 284.3% for FY-2025, which is above its 5-year median of 11.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Eros International Media Ltd?
Eros International Media Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -98.77% for FY-2025, which is below its 5-year median of -3.87% indicating decreasing margins.

Q.4 Net Profit Margin of Eros International Media Ltd?
Eros International Media Ltd Net Profit Margin is 181.94% for FY-2025, is above its 5-year median of -17.6%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 284.3 11.3
Operating Profit Margin (%) -98.77 -3.87
Net Profit Margin (%) 181.94 -17.6

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Eros International Media Ltd?
Eros International Media Ltd Return on Asset is 6.59%, which is above its 5-year historical median of -5.14%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Eros International Media Ltd?
Eros International Media Ltd Return on capital employed is 15.43% for FY-2025, which is above its 5-year historical median of -3.68%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Eros International Media Ltd?
Eros International Media Ltd Return on equity is 16.87% for FY-2025, which is above its 5-year historical median of -11.53%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Eros International Media Ltd?
Eros International Media Ltd Cash conversion cycle is 288 days, in line with its 5-year historical median of 288 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.04 0.11
ROE (%) 16.87 -11.53
ROCE (%) 15.43 -3.68
Cash Conversion Cycle 288 days 288 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Eros International Media Ltd?
Eros International Media Ltd Debt-to-Equity ratio is 0.15, which is above the industry average of 0.06, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Eros International Media Ltd?
Eros International Media Ltd Debt to cash flow from operations is 34.37, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Eros International Media Ltd?

Q.1 Promoter shareholding and pledge status of Eros International Media Ltd?
Promoters hold 16.25% of the Eros International Media Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Eros International Media Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Eros International Media Ltd vs industry peers?
Eros International Media Ltd revenue CAGR is -40.01%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -54.8 0
Gross Profit Growth (%) 0 5.9
Operating Profit Growth (%) 0 3.8
Net Profit Growth (%) 0 9.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.04 0.1
ROE (%) 16.87 -
ROCE (%) 15.43 0.07
Cash Conversion Cycle (days) 287.73 90

Valuation & price assessment

Q.1 Stock return of Eros International Media Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -26.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-26.9% -19.6% -30% 31.5%
Q.2 Valuation ratios of Eros International Media Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - - 28.25
Price to Book 0.1 0.19 1.04
Price to Sales 0.49 0.49 6.25
EV to EBITDA -2.18 -2.18 10.21

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