In the trading session following the results announcement, the stock gained 5.00% to close at ₹0.21, though it remains deeply underwater with a 41.67% decline over the past year and trades 47.50% below its 52-week high of ₹0.40. The company's proprietary Mojo Score of 17/100 and "Strong Sell" advisory underscore the significant challenges facing investors in this highly volatile counter.
The company's Q3 FY26 performance reveals a business model characterised by extreme lumpiness in project execution. Net sales of ₹1.25 crores in Q3 FY26 represented a dramatic 733.33% quarter-on-quarter increase from the abysmal ₹0.15 crores reported in Q2 FY26, yet remained 27.33% below the ₹1.72 crores achieved in Q3 FY25. This erratic revenue pattern—swinging from ₹5.10 crores in Q4 FY25 to ₹1.06 crores in Q1 FY26, then plummeting to ₹0.15 crores in Q2 FY26 before recovering to ₹1.25 crores—raises serious questions about the sustainability and predictability of the company's business operations.
Financial Performance: A Rollercoaster Ride with No Stability
The quarterly income statement reveals a company struggling to establish consistent operational momentum. In Q3 FY26, operating profit (excluding other income) stood at ₹0.58 crores with a margin of 46.40%, a significant improvement from Q2 FY26's ₹0.04 crores (26.67% margin) but substantially lower than Q3 FY25's ₹1.31 crores (76.16% margin). The dramatic margin compression year-on-year—from 76.16% to 46.40%—suggests either deteriorating pricing power or a shift in project mix towards lower-margin work.
Net profit of ₹0.42 crores in Q3 FY26, whilst representing a strong sequential recovery, pales in comparison to the ₹0.92 crores achieved in the same quarter last year—a 54.35% year-on-year decline. The PAT margin of 33.60% in Q3 FY26, though respectable, has contracted from 53.49% in Q3 FY25, indicating erosion in bottom-line efficiency. The company's tax rate also displayed volatility, ranging from 23.53% to 50.00% across recent quarters, with Q3 FY26 recording 25.00%.
| Quarter | Net Sales (₹ Cr) | QoQ Growth | Net Profit (₹ Cr) | QoQ Growth | PAT Margin |
|---|---|---|---|---|---|
| Dec'25 (Q3 FY26) | 1.25 | +733.33% | 0.42 | +2,000% | 33.60% |
| Sep'25 (Q2 FY26) | 0.15 | -85.85% | 0.02 | -96.23% | 13.33% |
| Jun'25 (Q1 FY26) | 1.06 | -79.22% | 0.53 | +134.04% | 50.00% |
| Mar'25 (Q4 FY25) | 5.10 | +196.51% | -1.56 | Loss | -30.59% |
| Dec'24 (Q3 FY25) | 1.72 | +47.01% | 0.92 | +100.00% | 53.49% |
| Sep'24 (Q2 FY25) | 1.17 | +17.00% | 0.46 | +283.33% | 39.32% |
| Jun'24 (Q1 FY25) | 1.00 | — | 0.12 | — | 12.00% |
The company's annual performance trajectory paints an equally concerning picture. Net sales have declined from ₹48.00 crores in FY20 to ₹8.00 crores in FY25, representing an 83.33% collapse over five years. The FY25 full-year revenue of ₹8.00 crores marked an 11.10% decline from FY24's ₹9.00 crores, with the company reporting breakeven profit after tax of ₹0.00 crores (rounded) compared to ₹2.00 crores in FY24. This represents a complete erosion of profitability on an annual basis, despite quarterly fluctuations showing intermittent profits.
Critical Concern: Revenue Sustainability
The company's revenue pattern shows extreme quarterly volatility with no discernible growth trend. The five-year sales CAGR of 6.30% masks the reality of a business that peaked at ₹48.00 crores in FY20 and has since contracted to ₹8.00 crores in FY25—an 83% decline. The operating profit CAGR of -166.49% over five years indicates fundamental deterioration in business economics.
Operational Weakness: Poor Capital Efficiency Despite Low Leverage
Thinkink Picturez's operational metrics reveal a company struggling with capital efficiency despite maintaining a clean balance sheet. The average return on equity (ROE) of 3.69% and average return on capital employed (ROCE) of 1.64% rank amongst the weakest in the organised media sector, indicating that the company generates minimal returns on shareholder capital. The latest ROE of -0.39% and ROCE of -0.88% reflect the FY25 full-year loss, further highlighting the deterioration in profitability.
The company's balance sheet shows shareholder funds of ₹151.15 crores as of March 2025, up from ₹102.01 crores in March 2024, primarily driven by a significant increase in share capital from ₹14.81 crores to ₹47.40 crores—a 220% increase that suggests substantial equity dilution through preferential allotments or rights issues. Reserves increased from ₹87.20 crores to ₹103.75 crores. Current assets stood at ₹91.09 crores against current liabilities of ₹7.55 crores, providing a comfortable liquidity cushion with a current ratio exceeding 12:1.
Long-term debt remains negligible at ₹0.23 crores, resulting in a debt-to-equity ratio of effectively zero. Whilst this debt-free status eliminates financial risk, it also means the company is not leveraging its balance sheet to drive growth—a missed opportunity given the low interest rate environment. The average sales to capital employed ratio of 0.23x indicates that the company generates only ₹0.23 in revenue for every rupee of capital employed, suggesting significant idle capital or inefficient asset utilisation.
Cash Flow Crisis: Operations Consuming Capital
The cash flow statement for FY25 reveals a deeply troubling pattern. Despite reporting breakeven profit before tax of ₹0.00 crores (rounded), the company generated negative operating cash flow of ₹43.00 crores—a massive cash burn that indicates substantial working capital build-up. Changes in working capital consumed ₹42.00 crores, suggesting either significant receivables accumulation, inventory build-up, or advance payments to suppliers that have not yet translated into revenue.
This negative operating cash flow was funded through cash flow from financing activities of ₹49.00 crores, which aligns with the significant equity capital raise observed in the balance sheet. The company invested ₹5.00 crores in investing activities, likely in fixed assets which increased from ₹12.01 crores to ₹23.89 crores during FY25. The net result was a flat closing cash position of ₹0.00 crores (rounded), indicating the company is operating with minimal cash reserves despite the recent capital infusion.
Working Capital Concerns
The ₹42.00 crores working capital consumption in FY25 against revenue of just ₹8.00 crores raises red flags about the quality of receivables and the timing of cash realisation. This 5.25x ratio of working capital increase to annual revenue suggests either very long payment cycles, disputed receivables, or advances for projects that may not materialise into revenue.
Peer Comparison: Underperformer in a Challenged Sector
Within the media and entertainment sector, Thinkink Picturez occupies a precarious position. The company's market capitalisation of ₹29.87 crores ranks it fifth amongst a peer group that includes Diligent Media, Next Mediaworks, Picturehouse Media, Prit Nandy Communications, and TV Vision. Whilst most peers in this micro-cap space also face profitability challenges, Thinkink's ROE of 3.69% provides some relative advantage over peers reporting 0.00% ROE, though this is hardly a badge of honour.
| Company | P/E (TTM) | P/BV | ROE (%) | Debt/Equity | Div Yield |
|---|---|---|---|---|---|
| Thinkink Picturez | NA (Loss Making) | 0.19x | 3.69% | 0.00 | NA |
| Diligent Media | 36.78x | -0.17x | 0.00% | -1.77 | NA |
| Next Mediaworks | NA (Loss Making) | -1.60x | 0.00% | -1.37 | NA |
| Picturehouse Media | 12.11x | -0.53x | 0.00% | -3.21 | NA |
| Prit Nandy Comm. | 5.50x | 0.50x | 0.39% | 0.00 | NA |
| TV Vision | NA (Loss Making) | -0.15x | 0.00% | -0.02 | NA |
The price-to-book value ratio of 0.19x indicates the market values Thinkink at just 19% of its book value of ₹3.19 per share, reflecting deep scepticism about the company's ability to generate returns on its stated net assets. This represents a significant discount to even the troubled peer group, where negative P/BV ratios for several companies indicate balance sheet stress. The loss-making status on a trailing twelve-month basis eliminates the relevance of P/E ratio comparisons.
Valuation Analysis: Deep Discount Reflects Fundamental Concerns
At the current market price of ₹0.21, Thinkink Picturez trades at a substantial discount to its book value of ₹3.19 per share, implying a 93.42% discount. The valuation grade of "Risky" assigned by the Mojo system reflects not just the discount but the fundamental uncertainty surrounding the business model and execution capability. The company's enterprise value to sales ratio of 3.78x appears elevated given the revenue volatility and declining trend, suggesting the market is pricing in some expectation of revenue recovery that has yet to materialise.
The stock's 52-week range of ₹0.18 to ₹0.40 shows it currently trades 16.67% above the low but 47.50% below the high. The valuation grade history reveals a deteriorating assessment, having moved from "Very Expensive" in May 2024 to "Risky" by November 2024 as the company's financial performance weakened. The absence of dividend payments (despite a ₹0.10 per share dividend paid in March 2024) and the loss-making status on a trailing basis eliminate traditional income-based valuation metrics.
Shareholding Pattern: Zero Promoter Holding Raises Governance Questions
The shareholding pattern reveals an unusual structure with zero promoter holding across all recent quarters. The company is 99.80% held by non-institutional investors (presumably public shareholders), with a minuscule 0.20% held by foreign institutional investors (FIIs). The complete absence of promoter shareholding is highly atypical for an Indian listed company and raises questions about management commitment and alignment of interests with minority shareholders.
| Category | Dec'25 | Sep'25 | Jun'25 | Mar'25 | QoQ Change |
|---|---|---|---|---|---|
| Promoter | 0.00% | 0.00% | 0.00% | 0.00% | — |
| FII | 0.20% | 0.20% | 0.20% | 0.20% | — |
| Mutual Funds | 0.00% | 0.00% | 0.00% | 0.00% | — |
| Insurance | 0.00% | 0.00% | 0.00% | 0.00% | — |
| Other DII | 0.00% | 0.00% | 0.00% | 0.00% | — |
| Non-Institutional | 99.80% | 99.80% | 99.80% | 99.80% | — |
The shareholding pattern has remained completely static across recent quarters, with no institutional accumulation or distribution. The absence of mutual fund, insurance company, or domestic institutional investor (DII) holdings suggests professional investors have avoided this counter entirely. The single FII holding 0.20% represents negligible institutional interest. This shareholding structure, combined with the significant equity dilution evident in the balance sheet, raises concerns about the quality of governance and the nature of the recent capital raise.
Stock Performance: Severe Underperformance Across All Timeframes
The stock's price performance has been catastrophic across virtually all timeframes. Over the past year, Thinkink Picturez has declined 41.67% whilst the Sensex gained 9.62%, resulting in negative alpha of -51.29 percentage points. The underperformance becomes increasingly severe over longer periods: a 96.47% decline over two years, 96.02% over three years, and a devastating 98.70% decline over ten years. In contrast, the Sensex has delivered positive returns of 15.02%, 36.56%, and 256.28% over the same respective periods.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | +10.53% | -1.15% | +11.68% |
| 1 Month | -4.55% | -0.32% | -4.23% |
| 3 Months | -12.50% | -1.94% | -10.56% |
| 6 Months | -19.23% | +3.36% | -22.59% |
| YTD | -12.50% | -2.25% | -10.25% |
| 1 Year | -41.67% | +9.62% | -51.29% |
| 2 Years | -96.47% | +15.02% | -111.49% |
| 3 Years | -96.02% | +36.56% | -132.58% |
The stock's beta of 1.50 indicates it is 50% more volatile than the broader market, amplifying both gains and losses. The risk-adjusted return of -0.88 over one year, combined with volatility of 47.58%, places the stock firmly in the "High Risk Low Return" category. The stock currently trades below all key moving averages—5-day (₹0.20), 20-day (₹0.21), 50-day (₹0.22), 100-day (₹0.24), and 200-day (₹0.27)—indicating sustained selling pressure and lack of technical support.
Compared to the media and entertainment sector's one-year return of 328.09%, Thinkink Picturez has underperformed by a staggering 369.76 percentage points. This massive underperformance reflects not just company-specific issues but also the market's complete loss of confidence in the management's ability to execute and deliver consistent results.
Technical Analysis: Mildly Bearish Trend with Limited Support
From a technical perspective, Thinkink Picturez remains in a "Mildly Bearish" trend as of February 13, 2026, having briefly emerged from a "Bearish" classification. The MACD indicator shows "Mildly Bullish" signals on both weekly and monthly timeframes, suggesting some nascent positive momentum. However, the Bollinger Bands indicator remains "Bearish" on the weekly timeframe and "Mildly Bearish" on the monthly, indicating the stock continues to trade in the lower band—a sign of persistent selling pressure.
The RSI (Relative Strength Index) shows "No Signal" on both weekly and monthly timeframes, indicating the stock is neither oversold nor overbought—a neutral reading that provides little directional guidance. The KST (Know Sure Thing) indicator displays conflicting signals, with "Bearish" on weekly but "Mildly Bullish" on monthly, whilst Dow Theory shows "No Trend" on weekly and "Bearish" on monthly. This mixed technical picture suggests the stock is in a consolidation phase with no clear directional bias.
Key technical levels include immediate support at ₹0.18 (the 52-week low), with immediate resistance at ₹0.21 (the 20-day moving average area). Major resistance stands at ₹0.24 (100-day moving average), with strong resistance at ₹0.27 (200-day moving average). The 52-week high of ₹0.40 represents a distant resistance level that would require a fundamental transformation in business performance to achieve.
Investment Thesis: Multiple Red Flags Overwhelm Any Positives
The investment thesis for Thinkink Picturez is fundamentally challenged by a confluence of negative factors that far outweigh any potential positives. The Mojo 4 Dots Analysis framework provides a structured assessment across four key dimensions: Near Term Drivers (Mixed), Quality (Below Average), Valuation (Risky), and Overall Assessment (Mixed). This assessment translates into an overall Mojo Score of just 17 out of 100, firmly in the "Strong Sell" category.
The "Near Term Drivers" classification as "Mixed" reflects the contradictory signals from quarterly financial performance (rated "Flat") and technical indicators (rated "Mildly Bearish"). Whilst Q3 FY26 showed sequential improvement, the extreme volatility and weak year-on-year comparisons provide little confidence in sustainability. The "Quality" assessment of "Below Average" reflects the company's weak five-year sales growth of 6.30%, disastrous EBIT growth of -166.49%, and anaemic returns on equity (3.69%) and capital employed (1.64%).
The "Valuation" grade of "Risky" acknowledges that whilst the stock trades at a steep discount to book value, this discount exists for good reason—the company has demonstrated an inability to generate acceptable returns on its stated book value. The overall "Mixed" assessment understates the severity of concerns, as the score of 17/100 places the stock in the bottom decile of investable opportunities.
Key Strengths & Risk Factors
✓ Key Strengths
- Debt-Free Balance Sheet: Long-term debt of just ₹0.23 crores eliminates financial risk and provides flexibility for future investments
- Strong Liquidity Position: Current ratio exceeding 12:1 with current assets of ₹91.09 crores against liabilities of ₹7.55 crores ensures short-term solvency
- No Promoter Pledging: Zero pledged shares eliminates one potential source of governance concern
- Sequential Improvement: Q3 FY26 showed strong QoQ recovery in both revenue (+733%) and profit (+2,000%)
- Positive ROE vs Peers: ROE of 3.69% compares favourably to most peers reporting 0% ROE
✗ Key Concerns
- Extreme Revenue Volatility: Quarterly revenue swings from ₹0.15 crores to ₹5.10 crores indicate no business stability or predictability
- Structural Revenue Decline: Revenue collapsed 83% from ₹48 crores (FY20) to ₹8 crores (FY25) with no signs of recovery
- Massive Cash Burn: Operating cash flow of -₹43 crores in FY25 against revenue of ₹8 crores signals severe working capital issues
- Zero Promoter Holding: Complete absence of promoter stake raises questions about management commitment and alignment
- No Institutional Interest: 0.20% institutional holding indicates professional investors have completely avoided this stock
- Weak Capital Efficiency: ROCE of 1.64% and ROE of 3.69% indicate inability to generate meaningful returns on deployed capital
- Catastrophic Stock Performance: 98.70% decline over 10 years and 41.67% decline over 1 year reflects complete loss of shareholder value
Outlook: What Lies Ahead
Positive Catalysts
- Sustained quarterly revenue above ₹2 crores with reducing volatility
- Operating cash flow turning positive and matching reported profits
- Promoter or strategic investor acquiring meaningful stake (25%+)
- Clarity on working capital normalisation and receivables realisation
- Return to annual profitability with PAT margins above 20%
Red Flags to Monitor
- Another quarter of sub-₹0.50 crore revenue indicating business collapse
- Continued negative operating cash flows requiring further equity dilution
- Any increase in debt levels to fund working capital gaps
- Failure to provide transparency on large receivables or advances
- Stock breaking below ₹0.18 (52-week low) on high volumes
The path forward for Thinkink Picturez requires a fundamental transformation in business model execution, revenue predictability, and cash conversion. Without clear visibility on project pipeline, customer concentration, payment cycles, and the path to sustainable profitability, the company remains a highly speculative bet unsuitable for most investors. The recent equity dilution, whilst providing a liquidity cushion, has also significantly diluted existing shareholders and raises questions about the terms and pricing of the capital raise.
The Verdict: Avoid This Value Trap
Score: 17/100
For Fresh Investors: Avoid completely. The combination of extreme revenue volatility, structural decline, negative operating cash flows, zero promoter holding, and catastrophic long-term stock performance makes this an unsuitable investment. The 93% discount to book value is not a buying opportunity but a reflection of fundamental business challenges that show no signs of resolution.
For Existing Holders: Exit on any technical bounce towards ₹0.24-0.27 levels. The company has destroyed 98.70% of shareholder value over the past decade, and recent quarterly improvements do nothing to change the structural challenges. The massive working capital consumption, absence of institutional interest, and lack of promoter commitment suggest further downside risk outweighs any potential recovery.
Fair Value Estimate: Not applicable. Given the business instability, inability to forecast earnings, and structural challenges, traditional valuation frameworks cannot be applied with any confidence. Current market price of ₹0.21 appears to appropriately reflect the elevated risk profile.
Note- ROCE= (EBIT - Other income)/(Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Investments in micro-cap stocks carry substantially higher risk than large-cap stocks and may result in complete loss of capital.
