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Check Before You Invest : Digikore Studios Ltd

BSE: 0 NSE: DIGIKORE ISIN: INE0QJ901011
  |   Sector:  Media   |   Industry:  Film Production, Distribution & Entertainment

Snapshot

Q.1 Which industry/sub-sector does Digikore Studios Ltd belong to?
Digikore Studios Ltd belongs to the Media sector, operating specifically within the Film Production, Distribution & Entertainment segment.
Q.2 Is Digikore Studios Ltd a good quality company?
Digikore Studios 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 Digikore Studios Ltd undervalued or overvalued?
Digikore Studios 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 5-year
Historic Median
Price to Earnings 10.41 18.79
Price to Book 2.13 4.02
Price to Sales 1.4 3.99
EV to EBITDA 5.69 12.30
Q.4 Is Digikore Studios Ltd a good buy now?
Digikore Studios 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.

Q.1 Gross Profit margin of Digikore Studios Ltd?
Digikore Studios Ltd Gross profit margin which is the profit after deduction of direct costs, is -18.1% for FY-2025, which is below its 5-year median of 7.9%, indicating decreasing margins.

Q.2 Operating Profit Margin of Digikore Studios Ltd?
Digikore Studios Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -12.79% for FY-2025, which is below its 5-year median of 10.03% indicating decreasing margins.

Q.3 Net Profit Margin of Digikore Studios Ltd?
Digikore Studios Ltd Net Profit Margin is -20.36% for FY-2025, is below its 5-year median of 1.87%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -18.1 7.9
Operating Profit Margin (%) -12.79 10.03
Net Profit Margin (%) -20.36 1.87

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Digikore Studios Ltd?
Digikore Studios Ltd Return on Asset is -10.4%, which is below its 5-year historical median of 5.74%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Digikore Studios Ltd?
Digikore Studios Ltd Return on capital employed is -11.11% for FY-2025, which is below its 5-year historical median of 26.03%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.6 Return on Equity (ROE) of Digikore Studios Ltd?
Digikore Studios Ltd Return on equity is -18.67% for FY-2025, which is below its 5-year historical median of 35.74%, indicating the business is making worse use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Digikore Studios Ltd?
Digikore Studios Ltd Debt-to-Equity ratio is 1.13, which is above the industry average of 0.06, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Digikore Studios Ltd?
Digikore Studios Ltd Debt to cash flow from operations is -1.84, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Digikore Studios Ltd?

Q.1 Promoter shareholding and pledge status of Digikore Studios Ltd?
Promoters hold 58.46% of the Digikore Studios Ltd, with 86.50% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Digikore Studios Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Digikore Studios Ltd vs industry peers?
Digikore Studios Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) -146.1 2.3
Operating Profit Growth (%) -135.4 -
Net Profit Growth (%) -176 9.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.51 0.11
ROE (%) -18.67 -
ROCE (%) -11.11 0.05
Cash Conversion Cycle (days) 295.83 98

Valuation & price assessment

Q.1 Stock return of Digikore Studios Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -62.83% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -62.8%
Q.2 Valuation ratios of Digikore Studios Ltd vs historical?
The current P/E ratio of 10.41 is lower than its historical median of 18.79, 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 10.41 18.79 28.25
Price to Book 2.13 4.02 1.04
Price to Sales 1.4 3.99 6.25
EV to EBITDA 5.69 12.30 10.21

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