Khyati Multimedia Entertainment Limited

Communication Services — Advertising Agencies · BSE

₹2.54−₹0.22 (−7.97%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. 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 Khyati Multimedia Entertainment Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Khyati Multimedia Entertainment Limited engages in the multimedia development business in India. It provides services in the areas of desktop publishing, imaging, corporate presentations, advertisements, creative designing, graphic designing, and multimedia software development.

IndustryAdvertising Agencies

SectorCommunication Services

Employees2

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹37 reaches shareholders as profit, with ₹58 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹25.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹25.5 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 11.2% 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 has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +976% while net margin moved -112% 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+976%

Margin effect-112%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.34 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

75/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

15.9x

2Y Median

41.2x

28 monthly readings · mean 39.3x · range 14.9x–64.0x

Sector Median

21.7x

median of 2 sector peers

🟢Current valuation is approximately 62% below its 2y median of 41.2x. 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 27% below the peer median of 21.7x.

vs. its own history

Cheap

41.2x median over 28 months · -62%

vs. sector peers

Cheap

21.7x median of 2 peers · -27%

vs. generic bands

Fair

15x–35x

EV/EBITDA

9.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -429.5% to 57.5% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -7.9% to 14.6%.
Return on capital is rising
ROCE has improved from -7.7% to 11.2%.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Short-term liquidity is tightFinancial
Current ratio of 0.72 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -429.5% to 57.5%. 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 62% 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.
Cheaper than its peers
It trades 27% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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 91% a year✓ 120.8% CAGR
Latest reported year was -72.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 56%✓ 57.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✓ 11.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 41.2x✓ 15.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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

3 good · 7 neutral · 1 weak

Market Cap

₹3 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.9x

Fair

Fairly valued against the generic band

P/B Ratio

2.12x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.16

Profitable

Profitable on a per-share basis

ROE

14.6%

Moderate

Moderate capital efficiency

ROCE

11.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.02x

Moderate

Moderate leverage

Revenue Growth (YoY)

-72.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

120.6%

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

Operating Margin

-578.1%

Weak

Thin margins leave little room for error

Net Margin

32.9%

Good

Strong bottom-line conversion

Current Ratio

0.72

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

2.9 / 2.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹1 Cr	₹2 Cr	₹1 Cr	+120.8%
EBITDA	-₹0 Cr	₹0 Cr	-₹1 Cr	₹0 Cr	—
EBITDA Margin	-429.5%	12.4%	-68.2%	57.5%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	-₹1 Cr	₹0 Cr	—
EPS	₹-0.14	₹0.08	₹-0.85	₹0.17	—
ROE	-7.9%	4.4%	-83.1%	14.6%	—
ROCE	-7.7%	3.7%	-48.0%	11.2%	—
Total Debt	₹1 Cr	₹1 Cr	₹2 Cr	—	—
Free Cash Flow	-₹0 Cr	₹0 Cr	-₹1 Cr	₹0 Cr	—

🟢 Revenue has grown at 120.8% a year over 3 years.

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

🟢 EBITDA Margin has risen from -429.5% to 57.5% over 3 years (+487.1 pts).

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

🟢 EPS has turned positive, from ₹-0.14 to ₹0.17.

🟢 ROE has risen from -7.9% to 14.6% over 3 years (+22.5 pts).

🟢 ROCE has risen from -7.7% to 11.2% over 3 years (+18.9 pts).

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

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3 Cr

Total Liabilities

₹2 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

25.1%

Peer Comparison

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

Recent News

1 positive5 general

Khyati Multimedia Entertainment sets Sep 28 AGM date for shareholder vote

scanx.trade, 05 Sept

Khyati Multimedia Entertainment Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 02 Sept

Khyati Multimedia Entertainment Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Khyati Multimedia AGM concludes in 30 mins; all resolutions passed

scanx.trade, 28 Sept

GMR Hyderabad International Airport standalone net profit rises 498.02% in the March 2026 quarter

Business Standard, 11 JunResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Khyati Multimedia promoter Yash Kartikbhai Patel sells 18,000 shares

scanx.trade, 04 Sept

Watch Items

Revenue growth is negative (-72.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 5 tripwires holding · see Key things to watch ↑