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Check Before You Invest : Sharpline Broadcast Ltd

BSE: 543341 NSE: ISIN: INE647W01014
  |   Sector:  Media   |   Industry:  TV Broadcasting & Software Production

Snapshot

Q.1 Which industry/sub-sector does Sharpline Broadcast Ltd belong to?
Sharpline Broadcast Ltd belongs to the Media sector, operating specifically within the TV Broadcasting & Software Production segment.
Q.2 Is Sharpline Broadcast Ltd a good quality company?
Sharpline Broadcast 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 Sharpline Broadcast Ltd undervalued or overvalued?
Sharpline Broadcast Ltd appears Fair, as its key valuation ratios are in line with 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 3.58 2.61
Price to Book 0.75 0.82
Price to Sales 0.54 0.41
EV to EBITDA 4.3 7.79
Q.4 Is Sharpline Broadcast Ltd a good buy now?
Sharpline Broadcast 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 Sharpline Broadcast Ltd?
Sharpline Broadcast Ltd revenue growth is 31.6% for FY-2025, which is below its 5-year CAGR of 44.8%, indicating slower growth.

Q.2 Gross Profit margin of Sharpline Broadcast Ltd?
Sharpline Broadcast Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.1% for FY-2025, which is in line with its 5-year median of 6%, indicating stable margins.

Q.3 Operating Profit Margin of Sharpline Broadcast Ltd?
Sharpline Broadcast Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.65% for FY-2025, which is below its 5-year median of 3.92% indicating decreasing margins.

Q.4 Net Profit Margin of Sharpline Broadcast Ltd?
Sharpline Broadcast Ltd Net Profit Margin is 2.83% for FY-2025, is in line with its 5-year median of 2.83%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 6.1 6
Operating Profit Margin (%) 3.65 3.92
Net Profit Margin (%) 2.83 2.83

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sharpline Broadcast Ltd?
Sharpline Broadcast Ltd Return on Asset is 2.46%, which is in line with its 5-year historical median of 2.46%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sharpline Broadcast Ltd?
Sharpline Broadcast Ltd Return on capital employed is 7.21% for FY-2025, which is above its 5-year historical median of 6.56%. 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 Sharpline Broadcast Ltd?
Sharpline Broadcast Ltd Return on equity is 5.35% for FY-2025, which is in line with its 5-year historical median of 5.35%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Sharpline Broadcast Ltd?
Sharpline Broadcast Ltd Cash conversion cycle is -21 days, below its 5-year historical median of 4 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.87 0.87
ROE (%) 5.35 5.35
ROCE (%) 7.21 6.56
Cash Conversion Cycle -21 days 4 days

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

Q.9 Debt to Equity ratio of Sharpline Broadcast Ltd?
Sharpline Broadcast Ltd Debt-to-Equity ratio is 0.61, which is above the industry average of 0.10, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sharpline Broadcast Ltd?
Sharpline Broadcast Ltd Debt to cash flow from operations is -2.17, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sharpline Broadcast Ltd?

Q.1 Promoter shareholding and pledge status of Sharpline Broadcast Ltd?
Promoters hold 29.68% of the Sharpline Broadcast Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sharpline Broadcast Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sharpline Broadcast Ltd vs industry peers?
Sharpline Broadcast Ltd revenue CAGR is 44.80%, compared to the industry median CAGR of -1.34%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 31.6 -1.3
Gross Profit Growth (%) -7 -1.1
Operating Profit Growth (%) -35.2 -1.3
Net Profit Growth (%) -24.5 2.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.87 0.47
ROE (%) 5.35 0.98
ROCE (%) 7.21 1.68
Cash Conversion Cycle (days) -21.22 -1

Valuation & price assessment

Q.1 Stock return of Sharpline Broadcast Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 17.53% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 17.5% 24.2%
Q.2 Valuation ratios of Sharpline Broadcast Ltd vs historical?
The current P/E ratio of 3.58 is higher than its historical median of 2.61, indicating that the stock is trading above 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 3.58 2.61 21.49
Price to Book 0.75 0.82 1.40
Price to Sales 0.54 0.41 2.27
EV to EBITDA 4.3 7.79 9.85

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