Stock Price Movement and Market Context
The stock closed at Rs.5.05, down sharply from its 52-week high of Rs.8.59, representing a decline of approximately 41.2% over the past year. Despite outperforming its sector by 5.69% on the day, the share price remains below key moving averages, including the 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. It is, however, trading above its 5-day moving average, indicating some short-term support.
In contrast, the broader market, represented by the Sensex, experienced a volatile session. After a gap-up opening of 3,656.74 points, the index lost momentum and fell by 1,618.84 points, closing at 83,704.36, down 2.5%. The Sensex remains close to its 52-week high of 86,159.02, just 2.93% away, with mega-cap stocks leading the gains. The index is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, suggesting a mixed technical outlook.
Financial Performance and Profitability Concerns
B A G Films & Media Ltd’s financial metrics highlight challenges that have contributed to the stock’s decline. The company’s return on equity (ROE) stands at a modest 2.47%, indicating limited profitability relative to shareholders’ funds. This figure is notably low compared to industry standards and reflects constrained earnings generation capacity.
Net sales have grown at an annualised rate of 9.53% over the past five years, a pace that is moderate but insufficient to drive significant shareholder value appreciation. The latest quarterly results for September 2025 showed a sharp contraction in profit after tax (PAT), which fell by 78.2% to Rs.0.36 crore compared to the previous four-quarter average. Operating profit to interest coverage ratio also declined to a low of 1.64 times, while PBDIT for the quarter was Rs.3.38 crore, marking the lowest level in recent periods.
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Long-Term and Recent Performance Trends
Over the last year, B A G Films & Media Ltd has delivered a total return of -30.69%, significantly underperforming the Sensex, which gained 8.57% over the same period. The stock has also lagged behind the BSE500 index across one-year, three-year, and three-month timeframes, underscoring persistent underperformance relative to broader market benchmarks.
The company’s market capitalisation grade is rated 4, reflecting its micro-cap status, while its overall Mojo Score is 37.0, with a Mojo Grade of Sell. This represents a downgrade from a previous Hold rating issued on 3 December 2025, signalling a deterioration in the company’s fundamental outlook.
Valuation and Capital Structure
Despite the subdued performance, the stock’s valuation metrics suggest it is trading at a discount relative to its peers. The price-to-book value ratio stands at 0.7, which is attractive compared to historical averages within the sector. The company’s ROE of 4.1% on a trailing basis, while still modest, supports this valuation perspective.
Debt levels remain minimal, with an average debt-to-equity ratio of zero, indicating a conservative capital structure and limited financial leverage. This low indebtedness reduces financial risk but has not translated into stronger profitability or growth.
Interestingly, while the stock price has declined, the company’s profits have increased by 248.4% over the past year, resulting in a PEG ratio of 0.1. This disparity between profit growth and share price performance may reflect market concerns about sustainability and broader sector headwinds.
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Shareholding Pattern and Sector Positioning
The majority of B A G Films & Media Ltd’s shares are held by non-institutional investors, which may contribute to lower liquidity and higher volatility in the stock price. The company operates within the Media & Entertainment sector, which has experienced mixed performance amid evolving consumer preferences and competitive pressures.
While the broader sector has seen some recovery, B A G Films & Media Ltd’s relative underperformance highlights company-specific factors influencing investor sentiment and valuation.
Summary of Key Metrics
To summarise, the stock’s 52-week low of Rs.5.05 reflects a combination of subdued profitability, modest sales growth, and recent quarterly earnings declines. The company’s low ROE and limited interest coverage ratio further illustrate challenges in generating robust returns for shareholders. Despite an attractive valuation on price-to-book and PEG ratios, the stock has underperformed both its sector and broader market indices over multiple time horizons.
Market conditions remain volatile, with the Sensex showing mixed technical signals and mega-cap stocks driving broader gains. B A G Films & Media Ltd’s micro-cap status and shareholding structure add to the complexity of its market performance.
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