ScoreWhy is Prime Focus Ltd ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of 9.63% 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
2
With ROCE of 8.2, it has a Very Expensive valuation with a 3.7 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 142.19%, its profits have risen by 245.8% ; the PEG ratio of the company is 0.4
3
Despite the size of the company, domestic mutual funds hold only 0.21% 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 ReportHow 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
90.31%
2.17
65.39%
Sensex
-5.08%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.01%
EBIT Growth (5y)
39.76%
EBIT to Interest (avg)
0.74
Debt to EBITDA (avg)
8.06
Net Debt to Equity (avg)
2.29
Sales to Capital Employed (avg)
0.75
Tax Ratio
9.83%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
4.83%
ROCE (avg)
5.53%
ROE (avg)
167.48%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
79
Industry P/E
65
Price to Book Value
9.14
EV to EBIT
31.20
EV to EBITDA
16.78
EV to Capital Employed
3.47
EV to Sales
5.11
PEG Ratio
0.03
Dividend Yield
NA
ROCE (Latest)
11.13%
ROE (Latest)
11.51%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend33What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 3.30 times
PAT(Latest six months)
Higher at Rs 174.87 cr
ROCE(HY)
Highest at 11.19%
NET SALES(Q)
Highest at Rs 1,384.47 cr
PBDIT(Q)
Highest at Rs 488.48 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 35.28%
PBT LESS OI(Q)
Highest at Rs 122.70 cr.
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 688.29 cr
DEBT-EQUITY RATIO(HY)
Lowest at 2.74 times
-6What is not working for the Company
PAT(Q)
At Rs 88.42 cr has Fallen at -40.7%
INTEREST(Q)
Highest at Rs 148.06 cr
Loading Valuation Snapshot...
Here's what is working for Prime Focus
Operating Profit to Interest - Quarterly
Highest at 3.30 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
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 122.70 cr has Grown at 564.07%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 1,384.47 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 1,384.47 cr has Grown at 41.42%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 488.48 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 35.28% 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 122.70 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 688.29 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio - Half Yearly
Lowest at 2.74 times
in the last five half yearly periodsMOJO 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 88.42 cr has Fallen at -40.7%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Quarterly
Highest at Rs 148.06 cr
in the last five quarters and Increased by 11.42 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
