Check Before You Invest : Thinking Hats Entertainment Solutions Ltd

Q: Which industry/sub-sector does Thinking Hats Entertainment Solutions Ltd belong to?

Thinking Hats Entertainment Solutions Ltd belongs to the Media sector, operating specifically within the Film Production, Distribution & Entertainment segment.

Q: Is Thinking Hats Entertainment Solutions Ltd a good quality company?

Thinking Hats Entertainment Solutions 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: Is Thinking Hats Entertainment Solutions Ltd undervalued or overvalued?

Thinking Hats Entertainment Solutions 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. Price to Earnings, Current: 4.29, Historic Median: 11.77. Price to Book, Current: 0.56, Historic Median: 1.25. Price to Sales, Current: 0.33, Historic Median: 0.93. EV to EBITDA, Current: 4.01, Historic Median: 8.03

Q: Is Thinking Hats Entertainment Solutions Ltd a good buy now?

Thinking Hats Entertainment Solutions 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

Q: Revenue growth of Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd revenue growth is 79% for FY-2025, which is above its 3-year CAGR of 60.18%, indicating faster growth.

Q: Gross Profit margin of Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.4% for FY-2025, which is below its 3-year median of 12.9%, indicating decreasing margins.

Q: Operating Profit Margin of Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.22% for FY-2025, which is below its 3-year median of 13.2% indicating decreasing margins.

Q: Net Profit Margin of Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd Net Profit Margin is 7.69% for FY-2025, is below its 3-year median of 9.07%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 11.4, Historic Median: 12.9. Operating Profit Margin (%), Current: 11.22, Historic Median: 13.2. Net Profit Margin (%), Current: 7.69, Historic Median: 9.07

Q: Return on Asset of Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd Return on Asset is 9.77%, which is below its 3-year historical median of 15.72%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd Return on capital employed is 20.57% for FY-2025, which is below its 3-year historical median of 37.36%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Thinking Hats Entertainment Solutions Ltd

Snapshot

Q.1 Which industry/sub-sector does Thinking Hats Entertainment Solutions Ltd belong to?

Thinking Hats Entertainment Solutions Ltd belongs to the Media sector, operating specifically within the Film Production, Distribution & Entertainment segment.

Q.2 Is Thinking Hats Entertainment Solutions Ltd a good quality company?

Thinking Hats Entertainment Solutions 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 Thinking Hats Entertainment Solutions Ltd undervalued or overvalued?

Thinking Hats Entertainment Solutions 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	4.29	11.77
Price to Book	0.56	1.25
Price to Sales	0.33	0.93
EV to EBITDA	4.01	8.03

Q.4 Is Thinking Hats Entertainment Solutions Ltd a good buy now?

Thinking Hats Entertainment Solutions 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 Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd revenue growth is 79% for FY-2025, which is above its 3-year CAGR of 60.18%, indicating faster growth.

Q.2 Gross Profit margin of Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.4% for FY-2025, which is below its 3-year median of 12.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.22% for FY-2025, which is below its 3-year median of 13.2% indicating decreasing margins.

Q.4 Net Profit Margin of Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd Net Profit Margin is 7.69% for FY-2025, is below its 3-year median of 9.07%, indicating decreasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	11.4	12.9
Operating Profit Margin (%)	11.22	13.2
Net Profit Margin (%)	7.69	9.07

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd Return on Asset is 9.77%, which is below its 3-year historical median of 15.72%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd Return on capital employed is 20.57% for FY-2025, which is below its 3-year historical median of 37.36%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd Return on equity is 18.81% for FY-2025, which is below its 3-year historical median of 36.96%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd Cash conversion cycle is 50 days, above its 3-year historical median of 41 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover (x)	1.27	1.35
ROE (%)	18.81	36.96
ROCE (%)	20.57	37.36
Cash Conversion Cycle	50 days	41 days

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

Q.9 Debt to Equity ratio of Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd Debt-to-Equity ratio is 0.45, which is above the industry average of 0.06, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Thinking Hats Entertainment Solutions Ltd?

Thinking Hats Entertainment Solutions Ltd Debt to cash flow from operations is -8.22, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Thinking Hats Entertainment Solutions Ltd?

Q.1 Promoter shareholding and pledge status of Thinking Hats Entertainment Solutions Ltd?

Promoters hold 56.79% of the Thinking Hats Entertainment Solutions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Thinking Hats Entertainment Solutions Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Thinking Hats Entertainment Solutions Ltd vs industry peers?

Thinking Hats Entertainment Solutions Ltd revenue CAGR is 60.18%, 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 (%)	79	3.5
Gross Profit Growth (%)	21.9	40.8
Operating Profit Growth (%)	6.6	40.9
Net Profit Growth (%)	18.8	49.5

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	1.27	0.18
ROE (%)	18.81	0.31
ROCE (%)	20.57	1.02
Cash Conversion Cycle (days)	50.26	83

Valuation & price assessment

Q.1 Stock return of Thinking Hats Entertainment Solutions Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -67.14% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-67.1%

Q.2 Valuation ratios of Thinking Hats Entertainment Solutions Ltd vs historical?

The current P/E ratio of 4.29 is lower than its historical median of 11.77, 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	4.29	11.77	30.51
Price to Book	0.56	1.25	1.01
Price to Sales	0.33	0.93	6.48
EV to EBITDA	4.01	8.03	8.48

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Check Before You Invest : Thinking Hats Entertainment Solutions Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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