Prime Focus Ltd (PFOCUS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

PVR Inox

Tips Music

D B Corp

Prime Focus

Sun TV Network

Zee Entertainmen

Saregama India

Nazara Technolo.

Sri Adhik. Bros.

Hathway Cable

Netwrk.18 Media

Why is Prime Focus Ltd ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 6.84% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 10.12 times
The company has been able to generate a Return on Equity (avg) of 2.22% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 4 consecutive quarters

ROCE(HY) Highest at 10.23%
NET SALES(Q) Highest at Rs 1,060.94 cr
PAT(9M) Higher at Rs 214.66 Cr

With ROCE of 7.5, it has a Expensive valuation with a 2.9 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 41.10%, its profits have risen by 176.6% ; the PEG ratio of the company is 0.7

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Prime Focus should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Prime Focus for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Prime Focus

41.73%

0.72

57.34%

Sensex

4.7%

0.39

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.84%

EBIT Growth (5y)

25.35%

EBIT to Interest (avg)

0.49

Debt to EBITDA (avg)

8.37

Net Debt to Equity (avg)

2.61

Sales to Capital Employed (avg)

0.75

Tax Ratio

30.32%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

5.09%

ROCE (avg)

4.73%

ROE (avg)

2.22%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.94

EV to EBIT

38.82

EV to EBITDA

18.36

EV to Capital Employed

2.92

EV to Sales

4.62

PEG Ratio

0.69

Dividend Yield

ROCE (Latest)

7.53%

ROE (Latest)

8.89%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

ROCE(HY)

Highest at 10.23%

NET SALES(Q)

Highest at Rs 1,060.94 cr

PAT(9M)

Higher at Rs 214.66 Cr

DEBT-EQUITY RATIO(HY)

Lowest at 3.02 times

-6What is not working for the Company

PAT(Q)

At Rs 3.60 cr has Fallen at -89.2%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 141.42 cr

NON-OPERATING INCOME(Q)

is 187.93 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Prime Focus

Net Sales - Quarterly

Highest at Rs 1,060.94 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 3.02 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Prime Focus

Profit After Tax (PAT) - Quarterly

At Rs 3.60 cr has Fallen at -89.2%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Non Operating Income - Quarterly

is 187.93 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 141.42 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents