Why is Prime Focus Ltd ?
1
With HIgh Debt (Debt-Equity Ratio at 10.58 times)- the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate 0% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 0 times
- The company has reported losses. Due to this company has reported negative ROE
2
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 24-Feb-25 and has generated -14.11% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
3
With ROCE of -3, it has a Expensive valuation with a 1.5 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 -13.74%, its profits have fallen by -14.7%
4
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
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Film Production, Distribution & Entertainment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Prime Focus for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Prime Focus
-12.88%
-0.26
52.14%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
5.03%
EBIT Growth (5y)
61.29%
EBIT to Interest (avg)
0.43
Debt to EBITDA (avg)
8.63
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.79
Tax Ratio
29.21%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
11.25%
ROCE (avg)
3.90%
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
40
Price to Book Value
6.43
EV to EBIT
69.01
EV to EBITDA
11.92
EV to Capital Employed
1.47
EV to Sales
2.03
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-2.97%
ROE (Latest)
-48.29%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
10What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 1.78 times
PBDIT(Q)
Highest at Rs 268.02 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 29.47%
PBT LESS OI(Q)
Highest at Rs -9.95 cr.
NET SALES(Q)
Highest at Rs 909.46 cr
-3What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.59 times
INTEREST(Q)
Highest at Rs 150.24 cr
PAT(Q)
At Rs -60.18 cr has Fallen at -8.8 %
Loading Valuation Snapshot...
Here's what is working for Prime Focus
Operating Profit to Interest - Quarterly
Highest at 1.78 times and Grown
each quarter in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Highest at Rs 268.02 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 29.47% and Grown
each quarter in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs -9.95 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 909.46 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Prime Focus
Interest - Quarterly
Highest at Rs 150.24 cr
in the last five quarters and Increased by 17.70 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit After Tax (PAT) - Quarterly
At Rs -60.18 cr has Fallen at -8.8 %
Year on Year (YoY)MOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 6.59 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio