Understanding the Current Rating
The Strong Sell rating assigned to V R Films & Studios 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 company’s investment appeal and risk profile.
Quality Assessment
As of 26 December 2025, V R Films & Studios Ltd’s quality grade is categorised as below average. The company has demonstrated weak long-term fundamental strength, with a concerning compound annual growth rate (CAGR) of -211.40% in operating profits over the past five years. This steep decline highlights persistent operational challenges and an inability to generate sustainable earnings growth. Additionally, the company’s return on equity (ROE) remains negative, reflecting ongoing losses and limited value creation for shareholders.
Valuation Considerations
The valuation grade for V R Films & Studios Ltd is deemed risky. Currently, the stock trades at valuations that are unfavourable compared to its historical averages. Negative EBITDA further compounds this risk, signalling that the company is not generating sufficient earnings before interest, taxes, depreciation, and amortisation to cover its operational costs. This elevated risk profile is reflected in the stock’s performance, which has delivered a -44.18% return over the past year, underscoring investor concerns about the company’s financial health and growth prospects.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial trend for V R Films & Studios Ltd is currently flat, indicating stagnation in key financial metrics. As of 26 December 2025, the company’s net sales for the nine months ended September 2025 stood at ₹7.55 crores, reflecting a decline of -38.77% compared to the previous period. Correspondingly, the profit after tax (PAT) for the same period was a loss of ₹2.10 crores, also down by -38.77%. These figures highlight ongoing operational difficulties and a lack of growth momentum. The company’s high debt to EBITDA ratio of -1.00 times further emphasises its limited ability to service debt, raising concerns about financial stability.
Technical Outlook
From a technical perspective, the stock is mildly bearish. While short-term movements have shown some positive returns — with a 1-week gain of 4.03% and a 1-month gain of 8.47% — the medium to longer-term trends remain negative. Over three months, the stock has declined by -10.40%, and over six months by -2.27%. The year-to-date (YTD) return is a significant -47.86%, reflecting sustained downward pressure on the share price. These technical signals suggest that investor sentiment remains cautious, with limited momentum for a sustained recovery.
Stock Performance Summary
Currently, V R Films & Studios Ltd is classified as a microcap stock within the Media & Entertainment sector. Its Mojo Score stands at 17.0, placing it firmly in the Strong Sell category. The score reflects a 16-point decline from its previous rating of Sell, as of 03 January 2025. Despite some short-term gains, the stock’s overall performance remains weak, with a one-year return of -44.18% and a year-to-date return of -47.86%. These figures underscore the challenges faced by the company in delivering shareholder value.
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What This Rating Means for Investors
For investors, the Strong Sell rating on V R Films & Studios Ltd serves as a cautionary signal. It suggests that the stock currently carries elevated risks due to weak fundamentals, unfavourable valuation, stagnant financial trends, and bearish technical indicators. Investors should carefully consider these factors before initiating or maintaining positions in the stock. The rating implies that the company may face continued headwinds, and capital preservation should be a priority.
However, it is important to note that market conditions and company fundamentals can evolve. Investors who are interested in this stock should monitor updates closely and consider comprehensive analysis, including peer comparisons and sector trends, to make informed decisions.
Summary
In summary, V R Films & Studios Ltd’s current Strong Sell rating by MarketsMOJO, last updated on 03 January 2025, reflects a challenging investment outlook. As of 26 December 2025, the company exhibits below-average quality, risky valuation, flat financial trends, and mildly bearish technicals. These combined factors justify the cautious stance and highlight the importance of thorough due diligence for prospective investors.
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