Imagicaaworld Entertainment Limited

Communication Services — Entertainment · NSE

₹46.67+₹0.32 (+0.69%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, 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. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Imagicaaworld Entertainment Limited develops and operates theme-based entertainment destinations in India. It operates through Parks and Hotel Divisions.

IndustryEntertainment

SectorCommunication Services

Employees738

Annual revenue₹345 Cr

How does it make money?

Turns over ₹345 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹35 left at the operating level before interest, tax and depreciation. Each of its 738 employees supports ₹46.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹46.7 lakh

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 1.8% 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.

Peer median ROE20.2%

What is the outlook?

1 analysts covering the stock expect revenue to shrink about 0.4% and earnings to grow about 16.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth-0.4%

Est. earnings growth+16.7%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +44% while net margin moved -100% 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+44%

Margin effect-100%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.1% is weak
✗ ROE has fallen by 151.8 points over the period

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

28/ 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.

Historical Valuation

Current P/E

186.7x

3Y Median

8.3x

40 monthly readings · mean 515.5x · range 4.9x–5629.0x

Sector Median

21.7x

median of 2 sector peers

⚠️Current valuation is approximately 2160% above its 3y median of 8.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 759% above the peer median of 21.7x.

vs. its own history

Expensive

8.3x median over 40 months · +2160%

vs. sector peers

Expensive

21.7x median of 2 peers · +759%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

25.3x

PEG

5.46

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 57% over 3 years.
Very low debt
Debt/Equity of 0.27x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 151.9% to 0.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 47.5% to 1.8% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 2 high · 4 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 36.1 points, from 71.4% to 35.3%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 9.5x to 1.4x.
🟡Profit is decliningFinancial
Net profit is down 100% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 38% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.51 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 57% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹62 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 71.4% to 35.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 2160% 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.
Returns on shareholder capital are falling
ROE has dropped from 151.9% to 0.1%. 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.
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

1Revenue growth stays above 10% a year✓ 13.0% CAGR
Latest reported year was 19.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 33%✓ 35.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹62 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹2,750 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

186.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.48x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.25

Profitable

Profitable on a per-share basis

ROE

0.1%

Weak

Weak capital efficiency

ROCE

1.8%

Weak

Low return on total capital employed

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

19.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

34.2%

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

₹62 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

33.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

36.8%

Good

Healthy core-business profitability

Net Margin

3.4%

Average

Average bottom-line conversion

Current Ratio

0.51

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.36

Defensive

Steadier than the market

52W Range Position

39%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

49.7 / 50.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

21.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹239 Cr	₹242 Cr	₹370 Cr	₹345 Cr	+13.0%
EBITDA	₹170 Cr	₹107 Cr	₹179 Cr	₹122 Cr	-10.6%
EBITDA Margin	71.4%	44.1%	48.4%	35.3%	—
PAT (Net Profit)	₹357 Cr	₹541 Cr	₹77 Cr	₹1 Cr	-87.9%
EPS	₹9.8	₹10.75	₹1.43	₹0.01	-89.9%
ROE	151.9%	73.2%	6.2%	0.1%	—
ROCE	47.5%	61.7%	5.9%	1.8%	—
Total Debt	₹806 Cr	₹340 Cr	₹167 Cr	₹343 Cr	-24.8%
Free Cash Flow	₹60 Cr	-₹25 Cr	₹30 Cr	₹62 Cr	+1.3%

🟢 Revenue has grown at 13.0% a year over 3 years.

🔴 EBITDA has shrunk at 10.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 71.4% to 35.3% over 3 years (-36.1 pts).

🔴 PAT (Net Profit) has shrunk at 87.9% a year over 3 years.

🔴 EPS has shrunk at 89.9% a year over 3 years.

🔴 ROE has fallen from 151.9% to 0.1% over 3 years (-151.8 pts).

🔴 ROCE has fallen from 47.5% to 1.8% over 3 years (-45.6 pts).

🟢 Total Debt has shrunk at 24.8% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (1.3% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,754 Cr

Total Liabilities

₹500 Cr

Cash & Equivalents

₹16 Cr

Operating Cash Flow

₹110 Cr

Capex

-₹48 Cr

Shareholding (proxy)

Institutional Holding

0.1%

Insider Holding

78.8%

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹63

+35.0% vs CMP

Target Range

₹63 – ₹63

Peer Comparison

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

Recent News

1 mixed5 general

Why Did Imagicaaworld Entertainment Share Price Hit 20% Upper Circuit?

NDTV Profit, 27 Aug

Imagicaaworld Entertainment (NSEI:IMAGICAA) Stock Price

Simply Wall Street, 10 Aug

Imagicaaworld Entertainment Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Buy Imagicaaworld Entertainment; target of Rs 62: Prabhudas Lilladher

Moneycontrol.com, 12 Aug

Imagicaaworld Entertainment (IMAGICAA.NS) Holds Flat at ₹54.55 as Key Range Bounds the Stock - Charm Flow

siam.in, 03 Sept

Imagicaaworld Entertainment, NMDC Steel surge on high trading volumes

CNBC TV18, 27 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · 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. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑