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Check Before You Invest : B.A.G. Convergence Ltd

BSE: 0 NSE: BAGDIGITAL ISIN: INE17CQ01015
  |   Sector:  Media   |   Industry:  Film Production, Distribution & Entertainment

Snapshot

Q.1 Which industry/sub-sector does B.A.G. Convergence Ltd belong to?
B.A.G. Convergence Ltd belongs to the Media sector, operating specifically within the Film Production, Distribution & Entertainment segment.
Q.2 Is B.A.G. Convergence Ltd a good quality company?
B.A.G. Convergence Ltd is a weak quality company, based on a inconsistent 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 B.A.G. Convergence Ltd undervalued or overvalued?
B.A.G. Convergence Ltd appears 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 3-year
Historic Median
Price to Earnings 22.72 25.88
Price to Book 3.45 8.72
Price to Sales 5.66 6.83
EV to EBITDA 11.67 16.09
Q.4 Is B.A.G. Convergence Ltd a good buy now?
B.A.G. Convergence Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 B.A.G. Convergence Ltd?
B.A.G. Convergence Ltd revenue growth is 19.1% for FY-2025, which is above its 3-year CAGR of 16.87%, indicating faster growth.

Q.2 Gross Profit margin of B.A.G. Convergence Ltd?
B.A.G. Convergence Ltd Gross profit margin which is the profit after deduction of direct costs, is 37.9% for FY-2025, which is in line with its 3-year median of 36.4%, indicating stable margins.

Q.3 Operating Profit Margin of B.A.G. Convergence Ltd?
B.A.G. Convergence Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 39.45% for FY-2025, which is above its 3-year median of 35.29% indicating increasing margins.

Q.4 Net Profit Margin of B.A.G. Convergence Ltd?
B.A.G. Convergence Ltd Net Profit Margin is 26.4% for FY-2025, is in line with its 3-year median of 26.4%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 37.9 36.4
Operating Profit Margin (%) 39.45 35.29
Net Profit Margin (%) 26.4 26.4

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of B.A.G. Convergence Ltd?
B.A.G. Convergence Ltd Return on Asset is 30.31%, which is below its 3-year historical median of 41.25%, indicating deteriorated asset utilization efficiency.

Q.6 Cash conversion cycle of B.A.G. Convergence Ltd?
B.A.G. Convergence Ltd Cash conversion cycle is 111 days, above its 3-year historical median of 66 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

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

Q.7 Debt to Equity ratio of B.A.G. Convergence Ltd?
B.A.G. Convergence Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.06, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of B.A.G. Convergence Ltd?
B.A.G. Convergence Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of B.A.G. Convergence Ltd?

Q.1 Promoter shareholding and pledge status of B.A.G. Convergence Ltd?
Promoters hold 65.94% of the B.A.G. Convergence Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does B.A.G. Convergence Ltd performance compare with that of its Peers?

Q.1 Revenue growth of B.A.G. Convergence Ltd vs industry peers?
B.A.G. Convergence Ltd revenue CAGR is 16.87%, compared to the industry median CAGR of 3.47%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 19.1 3.5
Gross Profit Growth (%) 18.2 40.8
Operating Profit Growth (%) 40 40.9
Net Profit Growth (%) 12.5 49.5
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.15 0.18
ROE (%) - 0.31
ROCE (%) - 1.02
Cash Conversion Cycle (days) 111.1 83

Valuation & price assessment

Q.1 Stock return of B.A.G. Convergence Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of B.A.G. Convergence Ltd vs historical?
The current P/E ratio of 22.72 is lower than its historical median of 25.88, indicating that the stock is trading below its historical average valuation.
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 22.72 25.88 30.51
Price to Book 3.45 8.72 1.01
Price to Sales 5.66 6.83 6.48
EV to EBITDA 11.67 16.09 8.48

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