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Check Before You Invest : Encash Entertainment Ltd

BSE: 538684 NSE: ISIN: INE552Q01018
  |   Sector:  Media   |   Industry:  Film Production, Distribution & Entertainment

Snapshot

Q.1 Which industry/sub-sector does Encash Entertainment Ltd belong to?
Encash Entertainment Ltd belongs to the Media sector, operating specifically within the Film Production, Distribution & Entertainment segment.
Q.2 Is Encash Entertainment Ltd a good quality company?
Encash Entertainment 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 Encash Entertainment Ltd undervalued or overvalued?
Encash Entertainment Ltd appears Overvalued, as its key valuation ratios are higher 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 - -
Price to Book 1.26 1.28
Price to Sales 222.92 18.71
EV to EBITDA -30.6 -98.74
Q.4 Is Encash Entertainment Ltd a good buy now?
Encash Entertainment 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 Encash Entertainment Ltd?
Encash Entertainment Ltd revenue growth is -70.6% for FY-2025, which is below its 5-year CAGR of -38.75%, indicating slower growth.

Q.2 Gross Profit margin of Encash Entertainment Ltd?
Encash Entertainment Ltd Gross profit margin which is the profit after deduction of direct costs, is -712.9% for FY-2025, which is below its 5-year median of -18.6%, indicating decreasing margins.

Q.3 Operating Profit Margin of Encash Entertainment Ltd?
Encash Entertainment Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -700.61% for FY-2025, which is below its 5-year median of -148.68% indicating decreasing margins.

Q.4 Net Profit Margin of Encash Entertainment Ltd?
Encash Entertainment Ltd Net Profit Margin is -846.39% for FY-2025, is below its 5-year median of -36.34%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -712.9 -18.6
Operating Profit Margin (%) -700.61 -148.68
Net Profit Margin (%) -846.39 -36.34

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Encash Entertainment Ltd?
Encash Entertainment Ltd Return on Asset is -4.31%, which is below its 5-year historical median of -2.11%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Encash Entertainment Ltd?
Encash Entertainment Ltd Return on capital employed is -4.63% for FY-2025, which is below its 5-year historical median of -2.46%. 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 Encash Entertainment Ltd?
Encash Entertainment Ltd Return on equity is -4.67% for FY-2025, which is below its 5-year historical median of -2.22%, 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.8 Debt to Equity ratio of Encash Entertainment Ltd?
Encash Entertainment 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.9 Debt to cash flow from operations of Encash Entertainment Ltd?
Encash Entertainment Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Encash Entertainment Ltd?

Q.1 Promoter shareholding and pledge status of Encash Entertainment Ltd?
Promoters hold 32.40% of the Encash Entertainment Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Encash Entertainment Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Encash Entertainment Ltd vs industry peers?
Encash Entertainment Ltd revenue CAGR is -38.75%, compared to the industry median CAGR of 0%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -70.6 -
Gross Profit Growth (%) 0 2.3
Operating Profit Growth (%) 0 -
Net Profit Growth (%) 0 9.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.01 0.11
ROE (%) -4.67 -
ROCE (%) -4.63 0.05
Cash Conversion Cycle (days) 61353.06 98

Valuation & price assessment

Q.1 Stock return of Encash Entertainment Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-1% 0.3% -12.3% -9.7%
Q.2 Valuation ratios of Encash Entertainment Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near 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 - - 28.25
Price to Book 1.26 1.28 1.04
Price to Sales 222.92 18.71 6.25
EV to EBITDA -30.6 -98.74 10.21

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