City Pulse Multiventures Limited

Communication Services — Entertainment · BSE

₹102.55+₹4.70 (+4.80%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:04 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

City Pulse Multiventures Limited engages in the cinema and entertainment business in India. It has launched WOWPLEX, an OTT platform that offers web series, movies, short stories, etc.

IndustryEntertainment

SectorCommunication Services

Annual revenue₹5 Cr

How does it make money?

Turns over ₹5 Cr a year. Of every ₹100 of sales, about ₹49 reaches shareholders as profit, with ₹93 left at the operating level before interest, tax and depreciation.

EBITDA margin93.1%

Net margin49.5%

Who are its competitors?

The closest listed comparisons in its industry are BHARTI AIRTEL LIMITED, VODAFONE IDEA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

BHARTI AIRTEL LIMITEDP/E 39.8x · ROE 20.2%

VODAFONE IDEA LIMITEDP/E 3.6x · ROE —

What is its competitive advantage?Little sign of one

Returns on capital of 3.4% 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.

ROCE3.4%

ROE2.5%

Peer median ROE20.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +856% while net margin moved -132% 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+856%

Margin effect-132%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.48 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

51/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

52.6x

2Y Median

2257.0x

28 monthly readings · mean 2041.1x · range 42.8x–5229.5x

Sector Median

21.7x

median of 2 sector peers

🟢Current valuation is approximately 98% below its 2y median of 2257.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 142% above the peer median of 21.7x.

vs. its own history

Cheap

2257.0x median over 28 months · -98%

vs. sector peers

Expensive

21.7x median of 2 peers · +142%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

52.6x

P/B

1.17x

EV/EBITDA

24.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -75.9% to 93.1% over 3 years.
Cash generation is improving
Free cash flow is up 619% over 3 years.
Return on equity is rising
ROE has improved from -16.1% to 2.4%.
Return on capital is rising
ROCE has improved from -11.0% to 3.4%.
Valuation below its historical average
At 52.6x the stock trades 98% below its own median of 2257.0x.

🔴 What Needs Attention1

Debt is rising
Total debt is up 115% over 3 years — worth checking what it funded.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 115% over 3 years, from ₹2 Cr to ₹4 Cr.
🔴High leverageFinancial
Debt/Equity of 4.17x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 221% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -75.9% to 93.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 98% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 4.17x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 142% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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
3 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

1Revenue growth stays above 84% a year✓ 112.2% CAGR
Latest reported year was 513.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 91%✓ 93.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 3.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 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
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹109 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

52.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.17x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.95

Profitable

Profitable on a per-share basis

ROE

2.5%

Weak

Weak capital efficiency

ROCE

3.4%

Weak

Low return on total capital employed

Debt/Equity

4.17x

High

High leverage

Revenue Growth (YoY)

513.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

96.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹102.55

ROA

2.0%

Weak

Assets generate little profit

Operating Margin

59.9%

Good

Healthy core-business profitability

Net Margin

45.5%

Good

Strong bottom-line conversion

Current Ratio

2.13

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.48

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

85.3 / 143.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

72.5

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹1 Cr	₹3 Cr	₹5 Cr	+112.2%
EBITDA	-₹0 Cr	₹1 Cr	₹2 Cr	₹4 Cr	—
EBITDA Margin	-75.9%	82.3%	88.3%	93.1%	—
PAT (Net Profit)	-₹1 Cr	₹0 Cr	₹1 Cr	₹2 Cr	—
EPS	₹-2.24	₹0.44	₹1.26	₹2.14	—
ROE	-16.1%	0.2%	1.5%	2.4%	—
ROCE	-11.0%	0.4%	22.4%	3.4%	—
Total Debt	₹2 Cr	₹3 Cr	₹2 Cr	₹4 Cr	+29.2%
Free Cash Flow	₹0 Cr	₹0 Cr	₹2 Cr	₹2 Cr	+93.1%

🟢 Revenue has grown at 112.2% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹4 Cr.

🟢 EBITDA Margin has risen from -75.9% to 93.1% over 3 years (+169.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹1 Cr to ₹2 Cr.

🟢 EPS has turned positive, from ₹-2.24 to ₹2.14.

🟢 ROE has risen from -16.1% to 2.4% over 3 years (+18.6 pts).

🟢 ROCE has risen from -11.0% to 3.4% over 3 years (+14.4 pts).

🔴 Total Debt has grown at 29.2% a year over 3 years.

🟢 Free Cash Flow has grown at 93.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹102 Cr

Total Liabilities

₹8 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

94.3%

Peer Comparison

Company	P/E	ROE
BHARTI AIRTEL LIMITED	39.8x	20.2%
VODAFONE IDEA LIMITED	3.6x	—

Recent News

1 mixed5 general

City Pulse Multiventures Q2FY27 Results: Board meeting postponed to Oct 23

scanx.trade, 18 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

City Pulse Multiventures Upper Circuit Streak: Day 2 Price and Data

Univest, 13 Oct

City Pulse Multiventures Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 03 Sept

City Pulse Multiventures Ltd. Lower Circuit: Price and Key Data

Univest, 05 Oct

City Pulse Multiventures and Peer Group Overview

Kalkine India, 15 Sept

City Pulse Multiventures cancels July 1 board meeting

scanx.trade, 01 Jul

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟢Business QualityStrong14.3/20

🟡Financial HealthAdequate11.2/20

🟢GrowthStrong18.4/20

🟢ProfitabilityStrong10/15

🟡ValuationFair9.7/15

🔴RiskHigh3.9/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 84% a year112.2% CAGR
✓EBITDA margin holds above 91%93.1%
✓Free cash flow remains positive₹2 Cr
✓Debt / EBITDA stays below 2x1.0x
✗ROCE stays above 8%3.4%