Bodhi Tree Multimedia Ltd is Rated Sell

Current Rating and Its Significance

MarketsMOJO’s Sell rating for Bodhi Tree Multimedia Ltd indicates a cautious stance for investors, suggesting that the stock may underperform relative to the broader market or its peers. This rating is derived from a comprehensive assessment of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall recommendation, helping investors understand the risks and opportunities associated with the stock.

Quality Assessment: Below Average Fundamentals

As of 27 December 2025, Bodhi Tree Multimedia Ltd’s quality grade is below average. The company exhibits weak long-term fundamental strength, with an average Return on Capital Employed (ROCE) of 9.48%. This figure suggests that the company’s efficiency in generating profits from its capital base is modest at best. Furthermore, operating profit has grown at an annual rate of 16.50% over the past five years, which, while positive, is not sufficient to offset other concerns.

Another critical factor impacting quality is the company’s debt servicing ability. The Debt to EBITDA ratio stands at a high 3.91 times, indicating significant leverage and potential vulnerability to interest rate fluctuations or economic downturns. Additionally, 55.87% of promoter shares are pledged, which can exert downward pressure on the stock price during market declines, adding to investor risk.

Valuation: Attractive but Not a Standalone Positive

Despite the challenges in quality, the valuation grade for Bodhi Tree Multimedia Ltd is currently attractive. This suggests that the stock is trading at a price that may offer value relative to its earnings, assets, or cash flows. However, an attractive valuation alone does not guarantee positive returns, especially when other factors such as financial health and technical trends are unfavourable. Investors should weigh valuation alongside other metrics before making decisions.

Financial Trend: Very Positive Momentum

Interestingly, the financial grade for Bodhi Tree Multimedia Ltd is very positive. This reflects recent improvements or strong performance in key financial indicators such as revenue growth, profitability, or cash flow generation. While the company’s long-term fundamentals are below average, current financial trends suggest some operational progress or stabilisation. This positive trend may offer a glimmer of hope for turnaround potential, but it is tempered by other negative factors.

Technical Outlook: Bearish Momentum

The technical grade for Bodhi Tree Multimedia Ltd is bearish, signalling that the stock’s price action and chart patterns currently reflect downward momentum. This is corroborated by recent price returns: the stock has declined by 6.51% over the past month and 9.41% over the past three months. Year-to-date, the stock has lost 16.11%, and over the last year, it has delivered a negative return of 19.51%. These figures indicate sustained selling pressure and underperformance relative to broader indices such as the BSE500.

Performance Relative to Benchmarks

As of 27 December 2025, Bodhi Tree Multimedia Ltd has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. This underperformance highlights the stock’s challenges in delivering shareholder value compared to the broader market. The combination of weak long-term fundamentals, high leverage, and bearish technicals contributes to this trend.

Market Capitalisation and Sector Context

Bodhi Tree Multimedia Ltd is classified as a microcap company within the Media & Entertainment sector. Microcap stocks often carry higher volatility and risk, which is reflected in the current rating. Investors should consider the sector dynamics and the company’s specific challenges when evaluating the stock’s prospects.

What This Rating Means for Investors

For investors, the Sell rating on Bodhi Tree Multimedia Ltd suggests caution. While the stock’s valuation appears attractive and recent financial trends are positive, the overall quality of the company’s fundamentals and the bearish technical outlook present significant risks. The high level of pledged promoter shares and elevated debt ratios add to the uncertainty, particularly in volatile market conditions.

Investors should carefully consider their risk tolerance and investment horizon before taking a position in this stock. The current rating implies that the stock may continue to face downward pressure or underperformance relative to the market. Those holding the stock might consider monitoring developments closely, while prospective investors may want to wait for clearer signs of fundamental improvement and technical strength.

Summary of Key Metrics as of 27 December 2025

• Mojo Score: 34.0 (Sell Grade)


• Return on Capital Employed (ROCE): 9.48%


• Operating Profit Growth (5-year CAGR): 16.50%


• Debt to EBITDA Ratio: 3.91 times


• Promoter Shares Pledged: 55.87%


• Stock Returns: 1D +0.99%, 1M -6.51%, 1Y -19.51%

These figures collectively underpin the current Sell rating and provide a comprehensive picture of the stock’s risk and return profile.

Conclusion

Bodhi Tree Multimedia Ltd’s current Sell rating by MarketsMOJO reflects a balanced assessment of its attractive valuation and positive financial trends against the backdrop of weak quality fundamentals and bearish technical signals. Investors should approach the stock with caution, recognising the risks posed by high leverage, pledged shares, and recent underperformance. Continuous monitoring of the company’s financial health and market behaviour will be essential for making informed investment decisions going forward.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today