Eforu Entertainment Limited

Consumer Cyclical — Luxury Goods · BSE

₹105.85₹0.00 (0.00%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:55 pm

Understanding the Business

Company site ↗

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

What does this company do?

Eforu Entertainment Limited engages in organizing and managing various events for corporates, companies, and individuals in India and internationally.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees6

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹65 reaches shareholders as profit, with ₹50 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹22.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹22.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 9.9% 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.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -61% while net margin moved -1971% 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-61%

Margin effect-1971%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 26.7% a year
✗ Profit fell 37.0% in the latest year

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

33/ 100

Expensive

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

77.8x

1.3Y Median

19.0x

16 monthly readings · mean 30.0x · range 10.9x–73.8x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 309% above its 1.3y median of 19.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 69.2x.

vs. its own history

Expensive

19.0x median over 16 months · +309%

vs. sector peers

Fair

69.2x median of 4 peers · +12%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

116.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 5.8% to 49.6% over 3 years.
Return on equity is rising
ROE has improved from -2.1% to 9.9%.
Return on capital is rising
ROCE has improved from 2.2% to 9.9%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 5.8% to 49.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 309% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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.

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

1EBITDA margin holds above 48%✓ 49.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✓ 9.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 19.0x✗ 77.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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

2 good · 6 neutral · 3 weak

Market Cap

₹80 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

77.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

7.24x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹1.36

Profitable

Profitable on a per-share basis

ROE

9.9%

Moderate

Moderate capital efficiency

ROCE

9.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

1.7%

Modest

Modest growth

Profit Growth (YoY)

-37.0%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

32.4%

Good

Healthy core-business profitability

Net Margin

48.1%

Good

Strong bottom-line conversion

Current Ratio

8.94

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.17

Defensive

Steadier than the market

52W Range Position

95%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

102.9 / 99.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

35.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3 Cr	₹1 Cr	₹0 Cr	₹1 Cr	-26.7%
EBITDA	₹0 Cr	-₹0 Cr	₹3 Cr	₹1 Cr	+50.1%
EBITDA Margin	5.8%	-2.3%	1035.1%	49.6%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	₹3 Cr	₹1 Cr	—
EPS	₹-0.2	₹-0.5	₹4.45	₹1.45	—
ROE	-2.1%	-5.7%	33.8%	9.9%	—
ROCE	2.2%	-0.7%	34.1%	9.9%	—
Free Cash Flow	₹0 Cr	-₹0 Cr	-₹2 Cr	₹0 Cr	-30.9%

🔴 Revenue has shrunk at 26.7% a year over 3 years.

🟢 EBITDA has grown at 50.1% a year over 3 years.

🟢 EBITDA Margin has risen from 5.8% to 49.6% over 3 years (+43.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-0.2 to ₹1.45.

🟢 ROE has risen from -2.1% to 9.9% over 3 years (+12.1 pts).

🟢 ROCE has risen from 2.2% to 9.9% over 3 years (+7.7 pts).

🔴 Free Cash Flow has shrunk at 30.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9 Cr

Total Liabilities

₹1 Cr

Total Debt

—

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.1%

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

6 general

EFORU Entertainment Appoints Prashant Modi as CEO with Regulatory Compliance

scanx.trade, 12 Feb

Eforu Entertainment Limited Successfully Completes Postal Ballot for Name Change Ratification

scanx.trade, 12 Jan

PROFX Stock Price and Chart — NSE:PROFX

TradingView, 03 Jul

Gold Penny Stocks in India for 2026 | High Potential

Univest, 16 Mar

7NR Stock Price and Chart — BSE:7NR

TradingView, 23 Jan

Eforu Entertainment acquires film rights for ₹5 Cr to expand portfolio

scanx.trade, 24 Jun

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

WeakGrowth · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

1 of 4 tripwires tripped — Valuation vs its own median of 19.0x · see Key things to watch ↑