Understanding the Current Rating
The Strong Sell rating assigned to Cinevista Ltd indicates a cautious stance for investors, suggesting that the stock currently exhibits significant risks and challenges. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the stock’s investment potential.
Quality Assessment
As of 06 January 2026, Cinevista Ltd’s quality grade is considered below average. The company’s long-term fundamental strength remains weak, with an average Return on Capital Employed (ROCE) of 0%. This figure highlights a lack of efficient capital utilisation to generate profits. Furthermore, operating profit has declined sharply, with an annualised contraction rate of -262.84% over the past five years. Such a steep decline in operating profitability signals structural issues in the company’s core business operations.
Additionally, the company’s ability to service its debt is poor, as reflected by an average EBIT to Interest ratio of -3.03. This negative ratio indicates that earnings before interest and taxes are insufficient to cover interest expenses, raising concerns about financial stability and solvency.
Valuation Perspective
The valuation grade for Cinevista Ltd is classified as risky. The stock is trading at levels that suggest elevated risk compared to its historical valuation benchmarks. Negative EBITDA further compounds this risk, signalling that the company is currently not generating positive earnings before interest, taxes, depreciation, and amortisation. Investors should be wary of the stock’s valuation given these financial stress indicators.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
Despite the negative outlook in quality and valuation, Cinevista Ltd’s financial grade is currently positive. This suggests some improvement or stability in recent financial trends, although it is important to interpret this cautiously given the broader context. The latest data shows that over the past year, the stock has delivered a return of -11.17%, reflecting a decline in shareholder value. Profitability has also deteriorated significantly, with profits falling by -268.2% in the same period.
Shorter-term returns present a mixed picture: the stock has gained 3.82% year-to-date and 6.40% over the past month, but it has declined by 14.21% over the last six months and 9.29% over three months. This volatility underscores the uncertain financial trajectory of the company.
Technical Outlook
The technical grade for Cinevista Ltd is bearish, indicating that the stock’s price momentum and chart patterns are currently unfavourable. This bearish technical stance aligns with the overall Strong Sell rating, signalling that market sentiment and trading behaviour do not support a positive near-term outlook.
Moreover, the stock has underperformed the BSE500 index over the last three years, one year, and three months, reinforcing the view that it has struggled to keep pace with broader market gains.
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What This Rating Means for Investors
For investors, the Strong Sell rating on Cinevista Ltd serves as a cautionary signal. It suggests that the stock currently carries significant risks related to its fundamental quality, valuation, and technical outlook. While the financial trend shows some positive elements, these are outweighed by the company’s weak profitability, poor debt servicing capacity, and negative earnings indicators.
Investors should carefully consider these factors before initiating or maintaining positions in Cinevista Ltd. The rating implies that the stock may face continued challenges and could underperform relative to the broader market and sector peers. Those with a higher risk tolerance might monitor the company for any signs of turnaround, but a conservative approach would favour avoiding exposure at this stage.
It is also important to note that all financial metrics and returns referenced here are current as of 06 January 2026, providing the most up-to-date view of the company’s status beyond the rating update date of 08 December 2025.
Company Profile and Market Context
Cinevista Ltd operates within the Media & Entertainment sector and is classified as a microcap company. Its modest market capitalisation and sector dynamics contribute to the stock’s volatility and risk profile. Investors should weigh these factors alongside the company’s financial and technical assessments when making investment decisions.
Summary of Key Metrics as of 06 January 2026
- Mojo Score: 17.0 (Strong Sell)
- Quality Grade: Below Average
- Valuation Grade: Risky
- Financial Grade: Positive
- Technical Grade: Bearish
- 1-Year Return: -11.17%
- 6-Month Return: -14.21%
- Year-to-Date Return: +3.82%
- Operating Profit Growth (5 years annualised): -262.84%
- EBIT to Interest Ratio (average): -3.03
- Profit Decline (1 year): -268.2%
These figures collectively underpin the Strong Sell rating and highlight the challenges facing Cinevista Ltd at present.
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