Bodhi Tree Multimedia Ltd is Rated Sell

Understanding the Current Rating

The 'Sell' rating assigned to Bodhi Tree Multimedia Ltd indicates that the stock is currently viewed as unattractive for investment based on a comprehensive assessment of multiple factors. This rating suggests that investors should exercise caution and consider the risks before adding the stock to their portfolios. The rating was last revised on 15 Dec 2025, when the Mojo Score dropped significantly from 56 (Hold) to 34 (Sell), reflecting a deterioration in the company’s overall outlook.

Here’s How Bodhi Tree Multimedia Ltd Looks Today

As of 09 February 2026, the stock’s performance and financial health present a mixed but predominantly cautious picture. The company’s market capitalisation remains in the microcap segment, which typically entails higher volatility and risk. The stock has shown a modest positive movement in the short term, with a 0.51% gain on the day and a 3.52% increase over the past week. However, longer-term returns have been disappointing, with a 1-year return of -22.17%, significantly underperforming the broader BSE500 index, which has delivered 7.71% over the same period.

Quality Assessment

Bodhi Tree Multimedia Ltd’s quality grade is currently rated below average. This reflects concerns about the company’s operational efficiency and long-term growth prospects. The average Return on Capital Employed (ROCE) stands at 9.48%, which is modest and indicates limited effectiveness in generating profits from capital invested. Furthermore, operating profit has grown at an annual rate of 16.50% over the last five years, which, while positive, is not sufficiently robust to inspire confidence in sustained expansion. The company’s ability to service its debt is also a concern, with a high Debt to EBITDA ratio of 3.91 times, signalling potential financial strain and increased risk in adverse market conditions.

Valuation Perspective

Despite the challenges in quality, the valuation grade for Bodhi Tree Multimedia Ltd is considered attractive. This suggests that the stock is trading at a price level that may offer value relative to its earnings and asset base. For value-oriented investors, this could represent an opportunity to acquire shares at a discount to intrinsic worth. However, the attractive valuation must be weighed against the company’s fundamental weaknesses and market risks, particularly given the high level of promoter share pledging.

Financial Trend Analysis

The financial grade is very positive, indicating that recent financial trends show some encouraging signs. This may include improvements in revenue streams, cash flow generation, or profitability metrics. However, the positive financial trend is tempered by the company’s weak long-term fundamentals and the high proportion of promoter shares pledged—currently at 55.87%. High promoter pledging can exert downward pressure on the stock price, especially in volatile or declining markets, as it raises concerns about potential forced selling or liquidity issues.

Technical Outlook

The technical grade for Bodhi Tree Multimedia Ltd is bearish, reflecting negative momentum in the stock’s price action. Technical indicators suggest that the stock may face resistance in mounting a sustained rally, and investors should be cautious of potential further declines. The recent price movements, including a 6-month return of -4.34% and a year-to-date loss of -11.58%, reinforce this cautious stance.

Implications for Investors

For investors, the 'Sell' rating implies that Bodhi Tree Multimedia Ltd currently carries elevated risks that outweigh its potential rewards. The combination of below-average quality, high promoter share pledging, and bearish technical signals suggests that the stock may continue to face headwinds. While the attractive valuation and positive financial trends offer some counterbalance, these factors alone do not sufficiently mitigate the risks inherent in the company’s current profile.

Investors should carefully consider their risk tolerance and investment horizon before engaging with this stock. Those seeking stable, long-term growth may find better opportunities elsewhere, while value investors might monitor the stock for signs of fundamental improvement or reduced promoter pledging before considering entry.

Summary of Key Metrics as of 09 February 2026

The stock’s recent returns highlight its volatility and underperformance relative to the market. Over the past month, the stock declined by 1.12%, while over three months it gained a modest 0.89%. The six-month return is negative at -4.34%, and the year-to-date performance shows a loss of 11.58%. These figures underscore the challenges the company faces in regaining investor confidence and market momentum.

From a fundamental standpoint, the company’s operating profit growth of 16.50% annually over five years is a positive sign but insufficient to offset concerns about debt levels and promoter pledging. The high Debt to EBITDA ratio of 3.91 times signals financial leverage that could constrain future growth or increase vulnerability during economic downturns.

Promoter share pledging at 55.87% remains a significant risk factor. In falling markets, this can lead to forced selling, further depressing the stock price and increasing volatility. Investors should monitor this metric closely as it can materially impact the stock’s risk profile.

Conclusion

Bodhi Tree Multimedia Ltd’s current 'Sell' rating by MarketsMOJO reflects a cautious stance grounded in a thorough analysis of quality, valuation, financial trends, and technical factors. While the stock offers an attractive valuation and some positive financial trends, these are overshadowed by weak fundamentals, high promoter pledging, and bearish technical signals. Investors are advised to approach this stock with caution and consider alternative opportunities that offer stronger fundamentals and more favourable risk-reward profiles.

Maintaining awareness of the company’s evolving financial health and market conditions will be essential for those tracking this stock. The rating and analysis will continue to be updated as new data emerges, ensuring investors have the latest insights to inform their decisions.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →