X

7Seas Entertainment Ltd. Stock Analysis

Small Cap
Evaluated by 201 users | BSE: 540874 | NSE: |
IT - Software
7Seas Entertainment Limited (formerly known as 7Seas Technologies Limited) is India’s first independent game development company with a strong focus on developing and publishing IP based games in all genres for all ages. For many leading game portals across the globe 7Seas provides...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 4.99%7.13%13.37%2.43%-11.22%-100.18%8.02%15.63%-0.25%-186.04%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 6.88.71710.71.70.36.56.71.30.2
Y-o-Y Gr. Rt.-27.5%95.4%-36.7%-83.9%-81.5%1918.8%4.2%-80.1%-85.1%
Adjusted EPS (Rs.) 1.1624.430.07-5.23-24.540.20.95-0.55-10.2
Y-o-Y Gr. Rt.-72.4%121.5%-98.4%-7571.4%NANA375%-157.9%NA
Book Value per Share (Rs.) 27.2330.7734.834.8730.170.884.45.354.8-5.4
Adjusted Net Profit 0.71.22.90-3.7-17.50.21.1-0.6-11.3
Net Op. Cash Flow (Rs. Cr.) -3.27.9-2.85.60-1.4-1.7-5.4-0.80
Debt to Cash Flow from Ops -0.190.19-1.180.96-387.8-4.83-2.49-0.91-7.562,102.79
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
7Seas Entertainment Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -32.4%-35.1%-68.6%-85.1%
Adjusted EPS -227.3%NA-470.8%NA
Book Value per Share -183.6-170.9-207.1-212.5
Share Price -18.2% -18.8% -22.4% -7.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 4.717.1413.450.18-15.97-157.437.8419.5-10.863352.96
Operating Profit Margin (%) 25.7927.6942.7934.34-68.54-3180.3452.5364.1563.88-5017.01
Net Profit Margin (%) 9.514.2616.960.4-215.28-5397.583.3715.7-45.56-5674.25
Debt to Equity 0.040.080.150.240.2410.480.850.831.08-1.1
Working Capital Days 5183752304562,2665,7191634522,9349,612
Cash Conversion Cycle 4177852582,0745,318762982,1459,298
Entity Percentage Holding
Promoters 50.04%
Non-Institutions 49.96%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of 7Seas Entertainment Ltd.'s performance infers:

7Seas Entertainment Ltd. earnings have grown by 0%, whereas share price has depreciated -18.8% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of 7Seas Entertainment Ltd. share prices over the last 10 years. Here is what we found out:

7Seas Entertainment Ltd. share price has depreciated -20.1% annually over the past ten years.

7Seas Entertainment Limited (formerly known as 7Seas Technologies Limited) is India’s first independent game development company with a strong focus on developing and publishing IP based games in all genres for all ages. For many leading game portals across the globe 7Seas provides games through licensing. The company has a strong online presence through www.onlinerealgames.com.

Having pioneered the developing IP based Gaming in India, 7Seas Technologies

7Seas Entertainment Limited (formerly known as 7Seas Technologies Limited) is India’s first independent game development company with a strong focus on developing and publishing IP based games in all genres for all ages. For many leading game portals across the globe 7Seas provides games through licensing. The company has a strong online presence through www.onlinerealgames.com.

Having pioneered the developing IP based Gaming in India, 7Seas Technologies Limited is today poised to take on the challenges of global demands. With such capabilities across online, mobile, PC and console gaming, the company is bringing the world of gaming to every consumer touch point.First Indian game company to be certified ISO 9001:2000.

7Seas has developed and occupied in all four business segments viz., online, mobile, pc and console. With the mix of all these four areas of operations, it has a mix of steady revenue generating streams and newer business lines with a very high future potential.

The company designs and develops games for all and in multiple Indian and Foreign languages. From action, adventure, puzzle, racing to sports, the company is of creative designers and IT Professionals with a strong focus on delivering high, energy entertainment content at every touch point - be it online, mobile, PC or a console. With a development centre in Hyderabad and a publishing and distribution subsidiary company in the USA - Fortune7inc, the company is trailblazing the entertainment business.

Online realgames.com - www.onlinerealgames.com is a unique online gaming portal developed by 7Seas Entertainment to provide complete fun and entertaining games for everyone and it contains FREE-TO-PLAY Single-Player /Multi-Player / Multi-Lingual Games at an absolute FREE registration. The games of the portal include various genres like Action, Adventure, Board Games, Card Games, Kids Zone, Puzzles, Sports and Shockwave suitable for all ages and of all the time. These games include both traditional and foreign games and sports from all over the world. The portal, being one of the best visited gaming portals over the World Wide Web, has won many laurels from all corners of the world for its online games. The portal stands for its slogan 'Fun never ends'.

Mobizill.com - www.mobizill.com is a mobile entertainment portal. Mobizill provides a unique feature of user generated content to Upload, Share & Download, across his/her friend's circle and community and the content can be downloaded by them from their desktops as well as from their mobile phones. The mobile content includes Free user generated mobile games, Premium mobile games, Wallpapers, Ring Tones, Videos, Themes, Software, Short Message Service, Jokes and many more.

Neo Delight - www.neodelight.com is a 100% wholly owned subsidiary online gaming website of 7Seas Entertainment. The portal consists hundreds of free wonderful Single-player, Multi-player and Multi-lingual 3D / 2D games of genres like shooting, action, adventure, cards, racing, board games, puzzles, fun etc, suitable for all ages and of all the time. These games include both traditional and foreign games and sports from all over the world. The portal is registration free.

Fortune7 Inc - Fortune7 Inc. is a wholly owned subsidiary of 7Seas Technologies Limited.

Business Activities:

Of synergizing magical expertise and real entertainment - there is more behind the exciting world of gaming. At 7Seas, the quest is to sync the vibe of the virtual and the real. As a game development company, it undertakes complex gaming development targeted at international audience of all ages and genres. The company is also among the pioneering and leading companies to have launched the online gaming portals. Right from the base level concept creation through to the highly focused modeling and animation, its skill spectrum matches world-class quality. With the help of the partners, the company is fast reaching out to new geographies with newer escapades of entertainment. The company has been the sole technology and development partners to some of the reputed names in the gaming industry. Developing IP based games and providing them to the portals, partners and affiliates through game licensing is the core business focus.

7Seas also focuses on multiple revenue models: Game Licensing, In-game licensing, online advertising and ad supported mobile games and Retail sales. The company will be offering the games as licensing, advertising revenue share, and make custom development for brand specific games and the company will retain ownership of the IP.

Core Product:

Online games - This involves playing games through the internet. Online games can be classified into MMORPG and casual games.

Mobile games - Refers to games played on devices such as mobile phones, smart phone, personal digital assistants (PDAs) etc.

PC games - Refers to games played using personal computers, usually with accessories such as graphic accelerator cards. The main advantage of PC gaming is that it offers a rich multimedia experience and easy usability.

Console games - These are played by using dedicated hardware devices known as consoles. Apart from a game console, an output device such as a computer monitor or a television and an input device known as a controller are also required. The console gaming segment includes both hardware and software console games.

Achievements & Recognitions:

2007 - Game site standard of excellence

www.onlinerealgames.com won the 2007-Web Award GAME SITE STANDARD OF EXCELLENCE from Web-Marketing Association for outstanding achievement in website development

2008 - FICCI-BAF 2008 Award for ‘Mouse Maze’ in Best Online Game category

www.onlinerealgames.com, a unique free online gaming portal of 7seas Entertainment Limted, won the prestigious '2008 International Stevie Business Award' in the “Software Programming/Design” category. The award was presented to L Maruthi Shanker, Managing Director of 7Seas Entertainment, on September 8, at the fifth Annual International Business Awards function held in Dublin, Ireland.

2008 - W3 Award 2008

www.onlinerealgames.com a unique free online gaming portal of 7Seas Entertainment Limited bagged ‘W3 Award’ under ‘Games’ category by ‘The W3 Awards’, West Hollywood, California.

2008 - Davey Award

7Seas online gaming portal www.onlinerealgames.com won the most prestigious ‘The Davey Award’ for 2008 by ‘The International Davey Awards’, New York under ‘Games’ category with over 4000 entries from across the US and around the world, the Davey Awards honors the finest creative work from the best small firms, agencies and companies worldwide.

2008 - 2008 International Stevie Business Award

www.onlinerealgames.com, won the prestigious '2008 International Stevie Business Award' in the “Software Programming/Design” category. The award was presented to L Maruthi Shanker, Managing Director of 7Seas Entertainment, on September 8, at the fifth Annual International Business Awards function held in Dublin, Ireland.

2008 - Best Game Site Website

Game Developer 7Seas Entertainment bagged 2008 WebAward - ‘Best Game Site WEBSITE’ under Best of Industry Category for outstanding achievement in Website Development for its online gaming portal www.onlinerealgames.com which was presented by Web Marketing Association, USA.

2009 - 2009 International Stevie Business Award

The company bagged the '2009 International Stevie Business Award' - for the second year in a row in the 'Best Website' category for its online gaming portal www.onlinerealgames.com

2009 - Best Game Site Website

The company bagged 2009 WebAward ‘Game Site Standard of Excellence’ under Best of Industry Category for outstanding achievement in Website Development for its online gaming portal which was presented by Web Marketing Association, USA.

2009 - 2009 Gold Davey Award

7Seas Technologies bagged the '2009 Gold Davey Award'- in the 'Best Website' under games category for its online gaming portal www.onlinerealgames.com

2010 - Best Game Site Website

7Seas Entertainment bagged the '2010 International Stevie Business Award' - for the third year in a row in the ‘Best Website’ under ‘Best Software Programming/Design’ category for its online gaming portal www.onlinerealgames.com

2010 - FAPCCI Award

7Seas Entertainment bagged FAPCCI (Silver Rolling Trophy) Award for the year 2008-2009 under Outstanding IT Company.

2010 - Intel Award

7Seas Entertainment Limited bagged the ‘Intel AppUp Developer Program’ Award as ‘Winner of India Innovate 2010 Contest’ for its wonderful games WordMaster, MathFun, Castlecoins, Mapmaking, Puzzle Out, Kidz Sudoku, Phrase Master and Flora Fun.

2011 - FICCI Award

7Seas Entertainment bagged the prestigious FICCI-BAF (Best of Animation Frames) award for its ‘The Dark Man’ game under the ‘Best Online Game’ category.

Technical Partners:

M3G export.com

7seas, being a technology partner with m3gexport.com, uses M3G exporter for creating stunning visual content for the exclusive mobile 3D games.

DARK ROOM

Darkroom studios provide a complete gaming development solution utilizing the Lawmaker game engine. The Lawmaker game engine is a cross-platform high performance real-time 3D developed specifically for in die and professional developers. Whether it is developing for the games of today and/or the games of the future, the Lawmaker game engine has been engineered with the needs of the developers and the demands of gamers worldwide.

Intel Corporation

7Seas being a software partner with Intel Corporation, provides a solution to threading technologies for PC Games, with its threading supported toolkits for PC Games development.

SOCONNE Inc

Freeworld-3D 2.0 is a fully interactive real-time 3D terrain editor. Parting with Soconne Inc. enables to produce the world class terrains for 7seas 3D games.

Other partners include Sify, Game Garage.co.uk, among many others.

Milestones:

Oct 11, 2010 - 7Seas Technologies incorporates name change

Mar 01, 2011 - The company publishes online casual games on Intel AppUp center

Apr 25, 2011 - The company reaches 500 IP-based games landmark

Jun 13, 2011 - 7Seas Entertainment adds a social gaming platform to its online casual gaming portals

Jun 13, 2011 - The company launches social gaming platform on its online gaming portals www.onlinerealgames.com and www.neodelight.com

Jun 16, 2011 - The company launches Tollywood film based casual online game

Jul 20, 2011 - 7Seas Entertainment launches 10 exciting mobile games

 

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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