Inspire Films Limited

Sector n/a · NSE

₹33.00+₹0.50 (+1.54%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

The 60-second version of Inspire Films 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 ₹10 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation.

EBITDA margin15.6%

Net margin3.7%

What is its competitive advantage?Little sign of one

Returns on capital of 3.7% 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.

ROCE3.7%

ROE1.4%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -79% while net margin moved -56% 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-79%

Margin effect-56%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 40.8% a year
✗ Profit has declined at 54.8% a year

Quality vs. Valuation

Company Quality

35/ 100

Weak

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

Valuation

18/ 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

P/E (Trailing)

—

P/B

—

EV/EBITDA

38.4x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 82% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 30.9% to 1.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 31.7% to 3.7% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 202% against revenue growth of -79% — stock may not be moving.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 82% over 3 years, from ₹9 Cr to ₹17 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🔴Inventory building faster than salesFinancial
Inventory up 202% against revenue up -79% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 91% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 10.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 30.9% to 1.4%. 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.
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

1EBITDA margin holds above 14%✓ 15.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 10.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 3.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

3 good · 6 neutral · 2 weak

Market Cap

₹45 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

1.4%

Weak

Weak capital efficiency

ROCE

3.7%

Weak

Low return on total capital employed

Debt/Equity

0.60x

Moderate

Moderate leverage

Revenue Growth (YoY)

30.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

107.3%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹33

Gross Margin

35.0%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

3.7%

Average

Average bottom-line conversion

Current Ratio

2.62

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

10.3 / 9.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

87.9

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹49 Cr	₹30 Cr	₹8 Cr	₹10 Cr	-40.8%
EBITDA	₹7 Cr	₹6 Cr	-₹3 Cr	₹2 Cr	-39.3%
EBITDA Margin	14.5%	18.9%	-39.5%	15.6%	—
PAT (Net Profit)	₹4 Cr	₹3 Cr	-₹5 Cr	₹0 Cr	-54.8%
EPS	₹2.97	₹3.07	₹-3.75	—	—
ROE	30.9%	7.6%	-17.8%	1.4%	—
ROCE	31.7%	12.9%	-10.2%	3.7%	—
Total Debt	₹9 Cr	₹7 Cr	₹14 Cr	₹17 Cr	+22.2%
Free Cash Flow	-₹3 Cr	-₹15 Cr	-₹0 Cr	₹0 Cr	—

🔴 Revenue has shrunk at 40.8% a year over 3 years.

🔴 EBITDA has shrunk at 39.3% a year over 3 years.

🟢 EBITDA Margin has risen from 14.5% to 15.6% over 3 years (+1.1 pts).

🔴 PAT (Net Profit) has shrunk at 54.8% a year over 3 years.

🔴 ROE has fallen from 30.9% to 1.4% over 3 years (-29.5 pts).

🔴 ROCE has fallen from 31.7% to 3.7% over 3 years (-28.0 pts).

🔴 Total Debt has grown at 22.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹52 Cr

Total Liabilities

₹24 Cr

Total Debt

₹17 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹1 Cr

Recent News

2 mixed4 general

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Univest, 27 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

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Moneycontrol.com, 28 Apr

PVR Inox shares tumble 14% in four months while Dhurandhar films earn over Rs 2,000 crore: What's spooking

The Economic Times, 08 AprPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate11.8/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair7.5/15

🔴RiskHigh2.3/10

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. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 14%15.6%
✗Debt / EBITDA falls below 3x10.4x
✗Interest cover stays above 3x1.5x
✓Free cash flow remains positive₹0 Cr
✗ROCE stays above 8%3.7%