Baweja Studios Limited

Sector n/a · NSE

₹83.75−₹2.35 (−2.73%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

The 60-second version of Baweja Studios Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

How does it make money?

Turns over ₹69 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 9.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -7% while net margin moved -18% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-7%

Margin effect-18%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.4% a year
✗ Profit has declined at 8.7% a year
✗ Latest-year revenue growth of -8.8% is below the longer-term trend — momentum is fading
✗ Profit fell 26.7% in the latest year

Quality vs. Valuation

Company Quality

41/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

35/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

15.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 12.8% to 17.5% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 40.1% to 5.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 52.1% to 9.8% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 2598% over 3 years, from ₹1 Cr to ₹38 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 688% against revenue up -7% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 296% against revenue up -7% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 12.4x to 3.9x.
🟡Profit is decliningFinancial
Net profit is down 24% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 12.8% to 17.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 688% against revenue up -7%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 40.1% to 5.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 16%✓ 17.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.9x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✓ 9.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 6 neutral · 4 weak

Market Cap

₹154 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

5.5%

Weak

Weak capital efficiency

ROCE

9.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.35x

Low

Conservative leverage

Revenue Growth (YoY)

-8.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-26.7%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

20.1%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

8.9%

Average

Average bottom-line conversion

Current Ratio

2.41

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

25.6 / 24.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹74 Cr	₹63 Cr	₹75 Cr	₹69 Cr	-2.4%
EBITDA	₹9 Cr	₹12 Cr	₹13 Cr	₹12 Cr	+8.3%
EBITDA Margin	12.8%	19.2%	17.8%	17.5%	—
PAT (Net Profit)	₹8 Cr	₹8 Cr	₹8 Cr	₹6 Cr	-8.7%
EPS	₹4.32	₹5.44	₹4.5	—	—
ROE	40.1%	8.6%	8.0%	5.5%	—
ROCE	52.1%	11.8%	11.7%	9.8%	—
Total Debt	₹1 Cr	₹4 Cr	₹31 Cr	₹38 Cr	+199.9%
Free Cash Flow	₹3 Cr	-₹23 Cr	-₹70 Cr	-₹5 Cr	—

🔴 Revenue has shrunk at 2.4% a year over 3 years.

🟢 EBITDA has grown at 8.3% a year over 3 years.

🟢 EBITDA Margin has risen from 12.8% to 17.5% over 3 years (+4.7 pts).

🔴 PAT (Net Profit) has shrunk at 8.7% a year over 3 years.

🔴 ROE has fallen from 40.1% to 5.5% over 3 years (-34.6 pts).

🔴 ROCE has fallen from 52.1% to 9.8% over 3 years (-42.3 pts).

🔴 Total Debt has grown at 199.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹3 Cr to -₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹186 Cr

Total Liabilities

₹76 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹5 Cr

Capex

-₹0 Cr

Recent News

6 general

Baweja Studios (NSEI:BAWEJA) - Stock Analysis

Simply Wall Street, 06 Feb

BAWEJA STUDIOS LIMITED Share Price

Upstox, 27 Mar

Baweja Studios IPO: Harman Baweja Takes the Helm as Company Charts a New Course on the Stock Market

Business Standard, 30 Jan

Netflix’s Scoop was a one-off case, Baweja Studios IPO tops Harman Baweja's priorities

Moneycontrol.com, 29 Jan

Harman Baweja's Production House Baweja Studios To Take A Big Jump With Its IPO Debut; Price Band Set At Rs. 170-180

MovieTalkies, 23 Jan

Baweja Studios Limited Company Information

Simply Wall Street, 06 Feb

Watch Items

Revenue growth is negative (-8.8%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Valuation

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑