Cineline India Adjusts Evaluation Score Amid Rising Sales and Profit, Faces Debt Challenges

Cineline India, a microcap player in the Media & Entertainment sector, has recently undergone an adjustment in its evaluation score. This revision reflects a shift in technical trends, moving from a bearish outlook to a mildly bearish stance.
In terms of key financial metrics, Cineline India reported a notable increase in net sales over the latest six months, reaching Rs 118.32 crore, which represents a growth rate of 32.60%. Additionally, the company achieved a higher profit after tax (PAT) of Rs 15.60 crore during the same period. The return on capital employed (ROCE) for the half-year stands at 7.33%, indicating a relatively attractive valuation with an enterprise value to capital employed ratio of 1.8.

Despite these positive indicators, the company faces challenges, including a high debt to EBITDA ratio of 14.81 times and a significant proportion of promoter shares pledged, which has increased by 35.82% over the last quarter. The stock has also underperformed against broader market indices, generating a return of -29.92% over the past year.

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