JOJO Limited

Communication Services — Entertainment · BSE

₹120.00−₹2.40 (−1.96%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, 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, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

JOJO Limited, together with its subsidiaries, operates as a vertically integrated entertainment company in India.

IndustryEntertainment

SectorCommunication Services

Employees46

Annual revenue₹24 Cr

How does it make money?

Turns over ₹24 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit, with ₹44 left at the operating level before interest, tax and depreciation. Each of its 46 employees supports ₹52.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹52.2 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?Some evidence

ROCE of 15.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +24404% while net margin moved +105% 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+24404%

Margin effect+105%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 179.1x is demanding — it needs sustained high growth to justify
✗ P/E is 111% above its own historical median of 85.1x — expensive by its own standards
✗ P/B of 22.57x is a steep premium to book

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

34/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

179.1x

3Y Median

85.1x

40 monthly readings · mean 1307.9x · range 40.9x–7690.0x

Sector Median

21.7x

median of 2 sector peers

⚠️Current valuation is approximately 111% above its 3y median of 85.1x. 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 724% above the peer median of 21.7x.

vs. its own history

Expensive

85.1x median over 40 months · +111%

vs. sector peers

Expensive

21.7x median of 2 peers · +724%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

155.6x

PEG

0.26

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 23.2% to 44.2% over 3 years.
Return on equity is rising
ROE has improved from 0.2% to 10.4%.
Return on capital is rising
ROCE has improved from 0.3% to 15.5%.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 3 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 5.89x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 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 32891% against revenue up 24404% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 169% 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 23.2% to 44.2%. 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?

Leverage amplifies any setback
Debt/Equity of 5.89x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 32891% against revenue up 24404%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 111% 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

1Revenue growth stays above 394% a year✓ 525.8% CAGR
Latest reported year was 145.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 42%✓ 44.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 15.5%
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

4 good · 3 neutral · 4 weak

Market Cap

₹1,655 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

179.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

22.57x

Rich

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

EPS (TTM)

₹0.67

Profitable

Profitable on a per-share basis

ROE

10.4%

Moderate

Moderate capital efficiency

ROCE

15.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.89x

High

High leverage

Revenue Growth (YoY)

145.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

438.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.01%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

32.7%

Good

Healthy core-business profitability

Net Margin

25.8%

Good

Strong bottom-line conversion

Current Ratio

1.93

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.11

Defensive

Steadier than the market

52W Range Position

97%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

115.0 / 101.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

66.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹5 Cr	₹4 Cr	₹24 Cr	+525.8%
EBITDA	₹0 Cr	₹4 Cr	₹1 Cr	₹11 Cr	+675.9%
EBITDA Margin	23.2%	81.6%	17.0%	44.2%	—
PAT (Net Profit)	₹0 Cr	₹2 Cr	-₹2 Cr	₹6 Cr	+694.4%
EPS	₹0.01	₹0.75	₹-0.34	₹1.1	+503.7%
ROE	0.2%	7.4%	-3.9%	10.4%	—
ROCE	0.3%	7.9%	-1.0%	15.5%	—
Total Debt	—	₹7 Cr	₹8 Cr	₹3 Cr	—
Free Cash Flow	-₹0 Cr	-₹11 Cr	-₹20 Cr	-₹3 Cr	—

🟢 Revenue has grown at 525.8% a year over 3 years.

🟢 EBITDA has grown at 675.9% a year over 3 years.

🟢 EBITDA Margin has risen from 23.2% to 44.2% over 3 years (+21.0 pts).

🟢 PAT (Net Profit) has grown at 694.4% a year over 3 years.

🟢 EPS has grown at 503.7% a year over 3 years.

🟢 ROE has risen from 0.2% to 10.4% over 3 years (+10.2 pts).

🟢 ROCE has risen from 0.3% to 15.5% over 3 years (+15.2 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹80 Cr

Total Liabilities

₹26 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹11 Cr

Capex

-₹14 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.9%

Corporate Actions

Dividend Rate

₹0.01

Ex-Dividend Date

22 Sept 2026

Peer Comparison

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

Recent News

1 mixed5 general

Jojo Ltd board approves proposal to incorporate entity in DIFC

scanx.trade, 16 Oct

JOJO (BSE:531910) - Stock Analysis

Simply Wall Street, 23 Mar

Dividends, Stock Splits And Rights Issues: Stocks To Watch This Week

ETV Bharat, 12 Oct

JOJO LG Partnership; Shares Rise 2.28% on Smart TV Launch

HDFC Sky, 09 AprPrice 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.

Madhuveer Com 18 Network Ltd. Share Price Near 52W High

Univest, 17 Aug

Jojo Limited board approves share split from ₹10 to ₹5

scanx.trade, 05 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.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑