Understanding the Current Rating
The Strong Sell rating assigned to Panorama Studios International Ltd indicates a cautious stance for investors, signalling significant concerns across multiple evaluation parameters. This rating is derived from a comprehensive assessment of the company’s quality, valuation, financial trend, and technical indicators. It suggests that the stock currently exhibits characteristics that may pose risks to shareholders and that investors should carefully consider these factors before taking a position.
Quality Assessment
As of 07 February 2026, Panorama Studios International Ltd holds an average quality grade. This reflects moderate operational efficiency and business fundamentals but does not inspire confidence in robust or sustainable growth. The company’s net sales have grown at an annualised rate of 12.37% over the past five years, while operating profit has increased at a slower pace of 8.31% annually. These figures indicate modest expansion but also highlight challenges in converting revenue growth into proportional profitability gains.
Valuation Perspective
The stock’s valuation is currently graded as fair. This suggests that, relative to its earnings and asset base, Panorama Studios International Ltd is neither significantly undervalued nor overvalued in the market. Investors should note that fair valuation does not imply an attractive entry point, especially when considered alongside other negative factors such as financial performance and technical trends.
Financial Trend and Profitability
The company’s financial trend is decidedly very negative as of today. The latest quarterly results reveal a sharp decline in key profitability metrics. Operating profit fell by 22.21%, with net sales dropping 33.0% compared to the previous four-quarter average. Profit before tax excluding other income (PBT less OI) plunged by 114.5%, registering a loss of ₹1.84 crores, while net profit after tax (PAT) declined by 81.2% to ₹2.04 crores. These figures underscore a deteriorating earnings profile and raise concerns about the company’s near-term financial health.
Moreover, Panorama Studios International Ltd has reported negative results for two consecutive quarters, signalling persistent operational challenges. The company’s microcap status further amplifies the risks associated with limited liquidity and market depth.
Technical Analysis
The stock’s technical grade is bearish, reflecting downward momentum and weak price action. Over the past year, the stock has underperformed significantly, delivering a negative return of 15.93%, while the broader BSE500 index has generated a positive return of 7.71% over the same period. Short-term price movements have been volatile, with a 1-day gain of 3.57% and a 1-month increase of 15.30%, but these have been offset by declines over three and six months (-14.00% and -9.70%, respectively).
Adding to the technical concerns is the high level of promoter share pledging, which currently stands at 26.55%. This is an increase of 10.38% over the last quarter. Elevated pledged shares can exert additional downward pressure on the stock price, especially in falling markets, as promoters may be forced to liquidate holdings to meet margin calls.
Stock Returns and Market Performance
As of 07 February 2026, Panorama Studios International Ltd’s stock returns paint a challenging picture for investors. The stock’s year-to-date return is a positive 12.10%, but this is overshadowed by a 15.93% loss over the past 12 months. The mixed short-term gains and longer-term declines suggest volatility and uncertainty in the stock’s price trajectory.
Investors should weigh these returns against the broader market context, where the BSE500 index has delivered a 7.71% gain over the last year, highlighting the stock’s relative underperformance.
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What This Rating Means for Investors
The Strong Sell rating on Panorama Studios International Ltd serves as a cautionary signal. It reflects a combination of average operational quality, fair valuation, deteriorating financial trends, and bearish technical indicators. For investors, this rating suggests that the stock currently carries elevated risks and may not be suitable for those seeking stable or growth-oriented investments.
Investors should consider the company’s recent financial performance, including declining sales and profitability, alongside the technical weakness and promoter share pledging risks. While short-term price gains have occurred, the overall trend remains negative, and the stock has underperformed the broader market significantly over the past year.
Those holding the stock may wish to reassess their positions in light of these factors, while prospective investors should exercise caution and conduct thorough due diligence before considering an entry.
Sector and Market Context
Operating within the Media & Entertainment sector, Panorama Studios International Ltd faces industry-specific challenges such as shifting consumer preferences, content competition, and evolving digital platforms. The company’s microcap status further exposes it to liquidity constraints and market volatility, which can exacerbate price swings and investor uncertainty.
Given these dynamics, the current rating reflects a prudent approach to risk management, emphasising the need for investors to prioritise quality and financial stability when evaluating stocks in this sector.
Summary
In summary, Panorama Studios International Ltd is rated Strong Sell by MarketsMOJO, with the rating last updated on 12 Nov 2025. The current analysis as of 07 February 2026 highlights average quality, fair valuation, very negative financial trends, and bearish technical signals. The stock’s recent performance and elevated promoter share pledging add to the risk profile, making it a less favourable option for investors seeking growth or stability.
Investors are advised to carefully consider these factors and monitor the company’s financial and operational developments closely before making investment decisions.
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