Shalimar Productions Limited

Communication Services — Entertainment · BSE

₹0.22₹0.00 (0.00%)

DalalBaazaar Score

38 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:54 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shalimar Productions Limited is involved in the media and entertainment business in India. It produces regional albums, films, and other media content.

IndustryEntertainment

SectorCommunication Services

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹-725 reaches shareholders as profit, with ₹-584 left at the operating level before interest, tax and depreciation.

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 -1.2% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -92% while net margin moved -21905% 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-92%

Margin effect-21905%

DalalBaazaar Score

38/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

28/ 100

Weak

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

Valuation

85/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

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

EV/EBITDA

—

PEG

—

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 Attention0

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

Red Flags

5 items require attention · 5 high

🔴Debt has risen sharplyFinancial
Total debt is up 733% over 3 years, from ₹0 Cr to ₹2 Cr.
🔴High leverageFinancial
Debt/Equity of 2.13x — earnings must service borrowings before shareholders see anything.
🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 591.5 points, from 7.3% to -584.2%.
🔴Receivables growing faster than salesFinancial
Receivables up 23% against revenue up -92% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 7.3% to -584.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 2.13x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 23% against revenue up -92%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 -586%✓ -584.2%
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%✗ -1.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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
✗ 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 buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 3 neutral · 5 weak

Market Cap

₹22 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

0.44x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0

Loss-making

Negative earnings per share — the business is losing money

ROE

-1.2%

Weak

Weak capital efficiency

ROCE

-1.2%

Weak

Low return on total capital employed

Debt/Equity

2.13x

High

High leverage

Revenue Growth (YoY)

374950.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-68.7%

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

-3.2%

Weak

Thin margins leave little room for error

Net Margin

-76.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

4.78

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.03

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.2 / 0.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹2 Cr	₹3 Cr	₹0 Cr	-57.7%
EBITDA	₹0 Cr	₹0 Cr	-₹0 Cr	-₹1 Cr	—
EBITDA Margin	7.3%	8.9%	-15.8%	-584.2%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	-₹1 Cr	-₹1 Cr	—
EPS	₹0.07	—	₹0.01	₹0.01	-48.6%
ROE	0.1%	0.1%	-0.7%	-1.2%	—
ROCE	0.1%	0.1%	-0.7%	-1.2%	—
Total Debt	₹0 Cr	₹1 Cr	₹0 Cr	₹2 Cr	+102.7%
Free Cash Flow	-₹0 Cr	₹0 Cr	-₹0 Cr	₹0 Cr	—

🔴 Revenue has shrunk at 57.7% a year over 3 years.

🔴 EBITDA has turned negative, from ₹0 Cr to -₹1 Cr.

🔴 EBITDA Margin has fallen from 7.3% to -584.2% over 3 years (-591.5 pts).

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

🔴 EPS has shrunk at 48.6% a year over 3 years.

🔴 ROE has fallen from 0.1% to -1.2% over 3 years (-1.3 pts).

🔴 ROCE has fallen from 0.1% to -1.2% over 3 years (-1.3 pts).

🔴 Total Debt has grown at 102.7% a year over 3 years.

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

Balance Sheet & Cash Flow — FY2026

Total Assets

₹108 Cr

Total Liabilities

₹8 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

24.1%

Peer Comparison

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

Recent News

1 mixed5 general

Shalimar Productions - 10 penny stocks plunge up to 75% in six months

The Economic Times, 18 Oct

Shalimar Productions Ltd enters arrangement for Punjabi film

scanx.trade, 05 Oct

Media Penny Stocks in India 2027: 5 Top Picks

Univest, 16 Sept

Shalimar Productions Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Shalimar Productions Q1 Results: Net loss narrows to ₹2.42 lakh

scanx.trade, 12 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Shalimar Productions - 15 penny stocks crash up to 50% in 3 months: Are you holding any?

The Economic Times, 23 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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

StrongValuation

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 5 high-severity red flags sit above this conclusion and should be read first.

1 of 3 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑