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Check Before You Invest : Shalimar Productions Ltd

BSE: 512499 NSE: ISIN: INE435E01020
  |   Sector:  Media   |   Industry:  Film Production, Distribution & Entertainment

Snapshot

Q.1 Which industry/sub-sector does Shalimar Productions Ltd belong to?
Shalimar Productions Ltd belongs to the Media sector, operating specifically within the Film Production, Distribution & Entertainment segment.
Q.2 Is Shalimar Productions Ltd a good quality company?
Shalimar Productions 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 Shalimar Productions Ltd undervalued or overvalued?
Shalimar Productions Ltd appears Overvalued, as its key valuation ratios are higher 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 - 147.95
Price to Book 0.48 0.48
Price to Sales 74.66 19.37
EV to EBITDA -58.97 140.25
Q.4 Is Shalimar Productions Ltd a good buy now?
Shalimar Productions 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 Shalimar Productions Ltd?
Shalimar Productions Ltd revenue growth is 27.8% for FY-2025, which is above its 5-year CAGR of -11.29%, indicating faster growth.

Q.2 Gross Profit margin of Shalimar Productions Ltd?
Shalimar Productions Ltd Gross profit margin which is the profit after deduction of direct costs, is -15.8% for FY-2025, which is below its 5-year median of 2.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of Shalimar Productions Ltd?
Shalimar Productions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -16.31% for FY-2025, which is below its 5-year median of 2.9% indicating decreasing margins.

Q.4 Net Profit Margin of Shalimar Productions Ltd?
Shalimar Productions Ltd Net Profit Margin is -26.53% for FY-2025, is below its 5-year median of 1.32%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -15.8 2.9
Operating Profit Margin (%) -16.31 2.9
Net Profit Margin (%) -26.53 1.32

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Shalimar Productions Ltd?
Shalimar Productions Ltd Return on Asset is -0.67%, which is below its 5-year historical median of 0.06%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Shalimar Productions Ltd?
Shalimar Productions Ltd Return on capital employed is -0.68% for FY-2025, which is below its 5-year historical median of 0.09%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Shalimar Productions Ltd?
Shalimar Productions Ltd Return on equity is -0.7% for FY-2025, which is below its 5-year historical median of 0.06%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Shalimar Productions Ltd?
Shalimar Productions Ltd Cash conversion cycle is 3315 days, in line with its 5-year historical median of 3315 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) 0.03 0.03
ROE (%) -0.7 0.06
ROCE (%) -0.68 0.09
Cash Conversion Cycle 3315 days 3315 days

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

Q.9 Debt to Equity ratio of Shalimar Productions Ltd?
Shalimar Productions Ltd Debt-to-Equity ratio is 0.06, which is lower the industry average of 0.06, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Shalimar Productions Ltd?
Shalimar Productions Ltd Debt to cash flow from operations is 10.93, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Shalimar Productions Ltd?

Q.1 Promoter shareholding and pledge status of Shalimar Productions Ltd?
Promoters hold 6.03% of the Shalimar Productions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Shalimar Productions Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Shalimar Productions Ltd vs industry peers?
Shalimar Productions Ltd revenue CAGR is -11.29%, compared to the industry median CAGR of 0%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 27.8 -
Gross Profit Growth (%) -321.1 2.3
Operating Profit Growth (%) -326.3 -
Net Profit Growth (%) -1,114.3 9.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.03 0.11
ROE (%) -0.7 -
ROCE (%) -0.68 0.05
Cash Conversion Cycle (days) 3315.06 98

Valuation & price assessment

Q.1 Stock return of Shalimar Productions Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 3.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
3.7% - - -
Q.2 Valuation ratios of Shalimar Productions Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 147.95, indicating that the stock is trading below 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 - 147.95 28.25
Price to Book 0.48 0.48 1.04
Price to Sales 74.66 19.37 6.25
EV to EBITDA -58.97 140.25 10.21

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