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Check Before You Invest : Thinking Hats Entertainment Solutions Ltd

BSE: 0 NSE: THESL ISIN: INE0SHE01019
  |   Sector:  Media   |   Industry:  Film Production, Distribution & Entertainment

Snapshot

Q.1 Which industry/sub-sector does Thinking Hats Entertainment Solutions Ltd belong to?
Thinking Hats Entertainment Solutions Ltd belongs to the Media sector, operating specifically within the Film Production, Distribution & Entertainment segment.
Q.2 Is Thinking Hats Entertainment Solutions Ltd a good quality company?
Thinking Hats Entertainment Solutions Ltd is a quality company, based on a 4-year financial track record.
Q.3 Is Thinking Hats Entertainment Solutions Ltd undervalued or overvalued?
Thinking Hats Entertainment Solutions Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Thinking Hats Entertainment Solutions Ltd a good buy now?
Thinking Hats Entertainment Solutions 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

Q.1 Revenue growth of Thinking Hats Entertainment Solutions Ltd?
Thinking Hats Entertainment Solutions Ltd revenue growth is 79% for FY-2025, which is above its 3-year CAGR of 60.18%, indicating faster growth.
Q.2 Return on capital employed (ROCE) of Thinking Hats Entertainment Solutions Ltd?
Thinking Hats Entertainment Solutions Ltd Return on capital employed is 20.57% for FY-2025, which is below its 3-year historical median of 37.36%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.
Q.3 Return on Asset of Thinking Hats Entertainment Solutions Ltd?
Thinking Hats Entertainment Solutions Ltd Return on Asset is 9.77%, which is below its 3-year historical median of 15.72%, indicating deteriorated asset utilization efficiency.
Q.4 Return on Equity (ROE) of Thinking Hats Entertainment Solutions Ltd?
Thinking Hats Entertainment Solutions Ltd Return on equity is 18.81% for FY-2025, which is below its 3-year historical median of 36.96%, indicating the business is making worse use of its shareholders capital.
Q.5 Cash conversion cycle of Thinking Hats Entertainment Solutions Ltd?
Thinking Hats Entertainment Solutions Ltd Cash conversion cycle is 50 days, above its 3-year historical median of 41 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover 1.27 1.35
ROE 18.81 36.96
ROCE 20.57 37.36
Cash Conversion Cycle 50 days 41 days
Q.6 Gross Profit margin of Thinking Hats Entertainment Solutions Ltd?
Thinking Hats Entertainment Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.4% for FY-2025, which is below its 3-year median of 12.9%, indicating decreasing margins.
Q.7 Operating Profit Margin of Thinking Hats Entertainment Solutions Ltd?
Thinking Hats Entertainment Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.22% for FY-2025, which is below its 3-year median of 13.2% indicating decreasing margins.
Q.8 Net Profit Margin of Thinking Hats Entertainment Solutions Ltd?
Thinking Hats Entertainment Solutions Ltd Net Profit Margin is 7.69% for FY-2025, is below with its 3-year median of 9.07%, indicating decreasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin 11.4 12.9
Operating Profit Margin 11.22 13.2
Net Profit Margin 7.69 9.07
Q.9 Debt to Equity ratio of Thinking Hats Entertainment Solutions Ltd?
Thinking Hats Entertainment Solutions Ltd Debt-to-Equity ratio is 0.45, which is above with the industry average of 0.21, indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Thinking Hats Entertainment Solutions Ltd?
Thinking Hats Entertainment Solutions Ltd Debt to cash flow from operations is -8.22, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Thinking Hats Entertainment Solutions Ltd?
Promoters hold 56.79% of the Thinking Hats Entertainment Solutions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Thinking Hats Entertainment Solutions Ltd vs industry peers?
Thinking Hats Entertainment Solutions Ltd revenue CAGR is 60.18%, compared to the industry median CAGR of 15.01%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth 79 15
Gross Profit Growth 21.9 NAN
Operating Profit Growth 6.6 NAN
Net Profit Growth 18.8 54.8
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover 1.27 0.34
ROE 18.81 0.57
ROCE 20.57 1.65
Cash Conversion Cycle (days) 50.26 149

Valuation & price assessment

Q.1 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -50.4%
Q.2 Valuation ratios of Thinking Hats Entertainment Solutions Ltd vs historical?
The current P/E is lower that its historical median.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 5.11 12.11 29.33
Price to Book 0.67 1.36 1.01
Price to Sales 0.39 0.95 6.48
EV to EBITDA 4.5 8.24 8.50
Q.4 Stock return of Thinking Hats Entertainment Solutions Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -50.41% based on the current price.

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