Check Before You Invest : Baba Arts Ltd

Snapshot

Q.1 Which industry/sub-sector does Baba Arts Ltd belong to?

Baba Arts Ltd belongs to the Media sector, operating specifically within the Film Production, Distribution & Entertainment segment.

Q.2 Is Baba Arts Ltd a good quality company?

Baba Arts Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Baba Arts Ltd undervalued or overvalued?

Baba Arts Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Baba Arts Ltd a good buy now?

Baba Arts 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 Baba Arts Ltd?

Baba Arts Ltd revenue growth is -51.2% for FY-2025, which is below its 5-year CAGR of 98.81%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Baba Arts Ltd?

Baba Arts Ltd Return on capital employed is 7.45% for FY-2025, which is below its 5-year historical median of 11.18%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Baba Arts Ltd?

Baba Arts Ltd Return on Asset is 5.01%, which is below its 5-year historical median of 7.55%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Baba Arts Ltd?

Baba Arts Ltd Return on equity is 5.52% for FY-2025, which is below its 5-year historical median of 8.1%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Baba Arts Ltd?

Baba Arts Ltd Cash conversion cycle is 384 days, above its 5-year historical median of 164 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.19	0.44
ROE	5.52	8.1
ROCE	7.45	11.18
Cash Conversion Cycle	384 days	164 days

Q.6 Gross Profit margin of Baba Arts Ltd?

Baba Arts Ltd Gross profit margin which is the profit after deduction of direct costs, is 35.8% for FY-2025, which is above its 5-year median of 24.5%, indicating increasing margins.

Q.7 Operating Profit Margin of Baba Arts Ltd?

Baba Arts Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.73% for FY-2025, which is in line with its 5-year median of 12.99% indicating stable margins.

Q.8 Net Profit Margin of Baba Arts Ltd?

Baba Arts Ltd Net Profit Margin is 25.74% for FY-2025, is above with its 5-year median of 21.05%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	35.8	24.5
Operating Profit Margin	12.73	12.99
Net Profit Margin	25.74	21.05

Q.9 Debt to Equity ratio of Baba Arts Ltd?

Baba Arts Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.25, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Baba Arts Ltd?

Baba Arts Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Baba Arts Ltd?

Promoters hold 74.68% of the Baba Arts Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Baba Arts Ltd vs industry peers?

Baba Arts Ltd revenue CAGR is 98.81%, compared to the industry median CAGR of 0.12%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-51.2	0.1
Gross Profit Growth	-28.1	7.2
Operating Profit Growth	-59.7	NAN
Net Profit Growth	-26.9	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.19	0.24
ROE	5.52	-0.24
ROCE	7.45	0.2
Cash Conversion Cycle (days)	384.4	251

Valuation & price assessment

Q.1 Stock return of Baba Arts Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 17.5% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	17.5%	2.8%	-0.9%	49.7%

Q.3 Valuation ratios of Baba Arts Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	72.92	36.78	28.34
Price to Book	2.64	2.99	1.03
Price to Sales	5.69	7.67	6.22
EV to EBITDA	47.88	23.95	10.59

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