Eros International Media Faces Severe Financial Challenges Amidst Declining Performance Metrics

Eros International Media has experienced significant volatility, hitting a new 52-week low of Rs. 7.82 today. The stock has underperformed its sector by 6.03%, reflecting ongoing challenges within the company. Over the past year, Eros International Media's performance has declined by 59.48%, contrasting sharply with the Sensex, which has gained 6.02% during the same period.
The company's financial metrics reveal a concerning trend, with net sales dropping by 73.2% to Rs. 31.57 crore. Profit before tax (PBT) has also seen a substantial decline, falling by 66.5% to Rs. -78.32 crore, while profit after tax (PAT) decreased by 63.2% to Rs. -52.43 crore. Eros International Media's ability to service its debt is weak, indicated by a poor EBIT to interest ratio of -1.74, and its return on equity stands at a mere 2.61%.

Additionally, institutional investor participation has waned, with a 0.76% decrease in stake over the last quarter, now holding only 1.29% of the company. The stock is currently trading below all key moving averages, indicating a bearish trend in the market.