Recent Price Movement and Market Context
On 26 Dec 2025, Imagicaaworld Entertainment's share price touched Rs.46.37, the lowest level in the past year. This decline comes after a three-day losing streak, during which the stock's returns contracted by approximately 5.03%. The day’s movement showed a 1.30% fall, aligning with sector trends. The broader market, represented by the Sensex, opened 183.42 points lower and was trading at 85,087.82, down 0.38% on the day. Despite this, the Sensex remains close to its 52-week high of 86,159.02, just 1.26% away, supported by bullish moving averages and mid-cap gains.
Imagicaaworld Entertainment’s share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained downward momentum relative to its recent trading history.
Financial Performance Overview
The company’s financial results have shown pressures over recent quarters. Imagicaaworld Entertainment reported negative earnings for two consecutive quarters, with profit after tax (PAT) for the latest quarter at Rs. -39.31 crores, reflecting a decline of 492.9% compared to the previous period. Profit before tax excluding other income (PBT less OI) stood at Rs. -39.09 crores, down by 42.46%. Interest expenses for the nine-month period reached Rs. 13.17 crores, representing a growth of 113.45%.
Return on capital employed (ROCE) is recorded at 2.6%, while the enterprise value to capital employed ratio is 2, suggesting a valuation that may be considered elevated relative to the company’s capital base. Over the past year, the stock has generated a negative return of 34.77%, contrasting with the Sensex’s positive 8.43% return over the same period. Profitability has also contracted by 70.4% year-on-year, underscoring the challenges faced by the company.
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Comparative Market and Sector Performance
Imagicaaworld Entertainment’s performance has lagged behind broader market indices and sector peers. The stock’s 52-week high was Rs.76, indicating a substantial decline from its peak. Over the last three years, the stock has underperformed the BSE500 index across multiple time frames, including the last three months, one year, and three years. This underperformance highlights persistent challenges relative to the wider market and sector benchmarks.
Within the Leisure Services sector, the stock’s valuation appears discounted compared to the average historical valuations of its peers. Despite this, the company’s market capitalisation grade is modest, rated at 3, reflecting its relative size and market presence.
Debt Servicing and Institutional Holdings
Imagicaaworld Entertainment maintains a strong capacity to service its debt obligations, with an average EBIT to interest ratio of 14.61. This suggests that earnings before interest and tax comfortably cover interest expenses, providing some stability in financial leverage management.
Institutional interest from domestic mutual funds remains limited, with holdings at just 0.33% of the company’s equity. Given the capability of these funds to conduct detailed research, this small stake may indicate a cautious stance towards the company’s current valuation or business outlook.
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Summary of Key Metrics
To summarise, Imagicaaworld Entertainment’s stock has reached a new low of Rs.46.37, reflecting a year marked by declining profitability and subdued returns. The company’s financial indicators show contraction in earnings and elevated interest expenses, while its valuation metrics suggest a premium relative to capital employed. The stock’s technical position below all major moving averages signals continued downward pressure in the near term.
Meanwhile, the broader market environment remains relatively positive, with the Sensex trading near its yearly highs and mid-cap stocks showing modest gains. This divergence highlights the specific challenges faced by Imagicaaworld Entertainment within the Leisure Services sector.
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