Shemaroo Entertainment Limited

Communication Services — Entertainment · NSE

₹105.44+₹1.09 (+1.04%)

DalalBaazaar Score

37 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shemaroo Entertainment Limited engages in the distribution of content for broadcasting of satellite channels and digital technologies in India.

IndustryEntertainment

SectorCommunication Services

Annual revenue₹579 Cr

How does it make money?

Turns over ₹579 Cr a year. Of every ₹100 of sales, about ₹-38 reaches shareholders as profit, with ₹-45 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 -95.9% 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 +4% while net margin moved -2346% 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+4%

Margin effect-2346%

DalalBaazaar Score

37/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 82.6 points over the period

Quality vs. Valuation

Company Quality

34/ 100

Weak

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

Valuation

36/ 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

N/A

No P/E — the company is lossmaking

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 Attention2

Return on equity is falling
ROE has dropped from 1.6% to -81.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 7.3% to -95.9% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -9.1x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹219 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 53.7 points, from 8.9% to -44.8%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -2.3x to -9.1x.

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 8.9% to -44.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 1.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 1.6% to -81.0%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -47%✓ -44.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -9.1x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 4% a year✗ 1.3% CAGR
Latest reported year was -5.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹18 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ -95.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

2 good · 3 neutral · 6 weak

Market Cap

₹303 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

1.12x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-66

Loss-making

Negative earnings per share — the business is losing money

ROE

-81.0%

Weak

Weak capital efficiency

ROCE

-95.9%

Weak

Low return on total capital employed

Debt/Equity

1.13x

Moderate

Moderate leverage

Revenue Growth (YoY)

-5.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-157.3%

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

₹18 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

3.3x

Operating Margin

-2.5%

Weak

Thin margins leave little room for error

Net Margin

-31.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.37

Defensive

Steadier than the market

52W Range Position

46%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

112.8 / 120.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

16.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹557 Cr	₹707 Cr	₹681 Cr	₹579 Cr	+1.3%
EBITDA	₹50 Cr	₹7 Cr	-₹69 Cr	-₹259 Cr	—
EBITDA Margin	8.9%	1.0%	-10.1%	-44.8%	—
PAT (Net Profit)	₹9 Cr	-₹41 Cr	-₹85 Cr	-₹219 Cr	—
EPS	₹3.45	₹-14.94	₹-31.14	₹-79.96	—
ROE	1.6%	-7.4%	-18.0%	-81.0%	—
ROCE	7.3%	-0.4%	-16.6%	-95.9%	—
Total Debt	₹321 Cr	₹340 Cr	₹304 Cr	₹302 Cr	-2.0%
Free Cash Flow	-₹37 Cr	₹15 Cr	₹70 Cr	₹18 Cr	—

🟡 Revenue has been broadly flat over 3 years (1.3% a year).

🔴 EBITDA has turned negative, from ₹50 Cr to -₹259 Cr.

🔴 EBITDA Margin has fallen from 8.9% to -44.8% over 3 years (-53.7 pts).

🔴 PAT (Net Profit) has turned negative, from ₹9 Cr to -₹219 Cr.

🔴 EPS has turned negative, from ₹3.45 to ₹-79.96.

🔴 ROE has fallen from 1.6% to -81.0% over 3 years (-82.6 pts).

🔴 ROCE has fallen from 7.3% to -95.9% over 3 years (-103.2 pts).

🟢 Total Debt has shrunk at 2.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹37 Cr to ₹18 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹686 Cr

Total Liabilities

₹419 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹24 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.5%

Corporate Actions

Ex-Dividend Date

16 Sept 2019

Peer Comparison

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

Recent News

3 mixed3 general

Shemaroo Entertainment (SHEMAROO.NS) Steadies Near ₹105 as Traders Eye Resistance at ₹110.25 - Sector Neutral Pair

https://www.siam.in/, 16 Oct

Shemaroo Entertainment (SHEMAROO) Share Price Falls 9.49% as Micro Cap Slips to Rs 102

Univest, 08 OctPrice 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.

Shemaroo Entertainment loss narrows 82%, targets 20% EBITDA margin

scanx.trade, 23 Jul

Shemaroo Entertainment Share Price Target 2026: Bull Case Rs 170,

Univest, 30 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Shemaroo Entertainment reports consolidated net loss of Rs 8.05 crore in the June 2026 quarter

Business Standard, 24 JulResults

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

Shemaroo Entertainment (SHEMAROO.NS) Eases 1.62% to ₹115.22 as Stock Holds Above Key Support - IV Rank

siam.in, 04 Oct

Watch Items

Revenue growth is negative (-5.6%) 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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

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.

3 of 5 tripwires tripped — Interest cover stays above 3x; Revenue growth stays above 4% a year; ROCE stays above 8% · see Key things to watch ↑