Sharpline Broadcast Limited

Communication Services — Broadcasting · BSE

₹8.80−₹1.10 (−11.11%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Sharpline Broadcast Limited operates as an advertising company in India. It is involved in the provision of advertising on all mass media, such as radio, television, newspaper, magazine printed publicity, exhibition outdoor publicity, and other modes.

IndustryBroadcasting

SectorCommunication Services

Annual revenue₹110 Cr

How does it make money?

Turns over ₹110 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹15 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?Some evidence

ROCE of 19.4% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +249% while net margin moved -601% 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+249%

Margin effect-601%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

71/ 100

Good

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

Valuation

88/ 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

1.7x

2Y Median

12.6x

28 monthly readings · mean 20.4x · range 2.0x–47.5x

Sector Median

21.7x

median of 2 sector peers

🟢Current valuation is approximately 87% below its 2y median of 12.6x. 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 92% below the peer median of 21.7x.

vs. its own history

Cheap

12.6x median over 28 months · -87%

vs. sector peers

Cheap

21.7x median of 2 peers · -92%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

3.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 8.6% to 14.6% over 3 years.
Return on equity is rising
ROE has improved from -3.3% to 16.9%.
Return on capital is rising
ROCE has improved from 2.3% to 19.4%.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 1 high · 3 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Debt is increasingFinancial
Total debt is up 47% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹28 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 149% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 8.6% to 14.6%. 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 87% 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 92% 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 39% a year✓ 51.7% CAGR
Latest reported year was 90.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 14.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹28 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 16%✓ 19.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹15 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1.7x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹5.26

Profitable

Profitable on a per-share basis

ROE

16.9%

Strong

Strong capital efficiency

ROCE

19.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.71x

Moderate

Moderate leverage

Revenue Growth (YoY)

90.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1373.6%

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

-₹28 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.09

Comfortable

Healthy short-term liquidity

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

8.9 / 9.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹31 Cr	₹31 Cr	₹58 Cr	₹110 Cr	+51.7%
EBITDA	₹3 Cr	₹3 Cr	₹3 Cr	₹16 Cr	+80.9%
EBITDA Margin	8.6%	10.2%	4.9%	14.6%	—
PAT (Net Profit)	-₹0 Cr	₹2 Cr	₹1 Cr	₹8 Cr	—
EPS	₹-0.39	₹0.93	₹0.32	₹4.4	—
ROE	-3.3%	7.1%	2.4%	16.9%	—
ROCE	2.3%	10.6%	6.6%	19.4%	—
Total Debt	₹23 Cr	₹10 Cr	₹12 Cr	₹33 Cr	+13.6%
Free Cash Flow	₹6 Cr	₹6 Cr	-₹16 Cr	-₹28 Cr	—

🟢 Revenue has grown at 51.7% a year over 3 years.

🟢 EBITDA has grown at 80.9% a year over 3 years.

🟢 EBITDA Margin has risen from 8.6% to 14.6% over 3 years (+6.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹8 Cr.

🟢 EPS has turned positive, from ₹-0.39 to ₹4.4.

🟢 ROE has risen from -3.3% to 16.9% over 3 years (+20.1 pts).

🟢 ROCE has risen from 2.3% to 19.4% over 3 years (+17.0 pts).

🔴 Total Debt has grown at 13.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹6 Cr to -₹28 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹122 Cr

Total Liabilities

₹69 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹27 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

41.4%

Peer Comparison

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

Recent News

6 general

Sharpline Broadcast appoints Ritesh as independent director

scanx.trade, 07 Oct

Sharpline Broadcast adopts FY26 financials; all AGM resolutions pass

scanx.trade, 01 Oct

Sharpline Broadcast case: Sebi modifies order against 15 individuals

Business Standard, 01 Nov

Sharpline Broadcast proposes MSEI delisting citing low volume

scanx.trade, 10 Sept

How Indian YouTube influencers are manipulating the stock market

Quartz India, 03 Mar

Pump & dump: How SEBI caught Arshad Warsi & others ‘manipulating’ stock prices in ‘finfluencer’ scheme

ThePrint, 03 Mar

Watch Items

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

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality

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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑