Check Before You Invest : Prime Focus Ltd

Snapshot

Q.1 Which industry/sub-sector does Prime Focus Ltd belong to?

Prime Focus Ltd belongs to the Miscellaneous sector, operating specifically within the Business Support segment.

Q.2 Is Prime Focus Ltd a good quality company?

Prime Focus Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Prime Focus Ltd undervalued or overvalued?

Prime Focus Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Prime Focus Ltd a good buy now?

Prime Focus 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

Q.1 Revenue growth of Prime Focus Ltd?

Prime Focus Ltd revenue growth is 18.9% for FY-2025, which is above its 5-year CAGR of -21.32%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Prime Focus Ltd?

Prime Focus Ltd Return on capital employed is 10.46% for FY-2025, which is above its 5-year historical median of 5.36%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Prime Focus Ltd?

Prime Focus Ltd Return on Asset is 9.11%, which is above its 5-year historical median of 1.4%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Prime Focus Ltd?

Prime Focus Ltd Return on equity is 11.74% for FY-2025, which is above its 5-year historical median of 2.2%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Prime Focus Ltd?

Prime Focus Ltd Cash conversion cycle is -329 days, below its 5-year historical median of -35 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.02	0.02
ROE	11.74	2.2
ROCE	10.46	5.36
Cash Conversion Cycle	-329 days	-35 days

Q.6 Gross Profit margin of Prime Focus Ltd?

Prime Focus Ltd Gross profit margin which is the profit after deduction of direct costs, is -39.1% for FY-2025, which is below its 5-year median of 85.5%, indicating decreasing margins.

Q.7 Operating Profit Margin of Prime Focus Ltd?

Prime Focus Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -31.19% for FY-2025, which is below its 5-year median of 8.97% indicating decreasing margins.

Q.8 Net Profit Margin of Prime Focus Ltd?

Prime Focus Ltd Net Profit Margin is 467.53% for FY-2025, is above with its 5-year median of 34.55%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-39.1	85.5
Operating Profit Margin	-31.19	8.97
Net Profit Margin	467.53	34.55

Q.9 Debt to Equity ratio of Prime Focus Ltd?

Prime Focus Ltd Debt-to-Equity ratio is 0.12, which is above with the industry average of 0.09, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Prime Focus Ltd?

Prime Focus Ltd Debt to cash flow from operations is 9.17, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Prime Focus Ltd?

Promoters hold 60.77% of the Prime Focus Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Prime Focus Ltd vs industry peers?

Prime Focus Ltd revenue CAGR is -21.32%, compared to the industry median CAGR of 10.59%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	18.9	10.6
Gross Profit Growth	-153.3	NAN
Operating Profit Growth	-500	NAN
Net Profit Growth	0	15.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.02	0.31
ROE	11.74	6.32
ROCE	10.46	11.37
Cash Conversion Cycle (days)	-328.84	50

Valuation & price assessment

Q.1 Stock return of Prime Focus Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 18.3% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	18.3%	35.4%	53.2%	197.9%

Q.3 Valuation ratios of Prime Focus Ltd vs historical?

The current P/E is lower 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	-	18.39	26.08
Price to Book	3.3	1.89	2.53
Price to Sales	841.37	69.75	5.26
EV to EBITDA	1787.81	60.18	11.21

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