Teamo Productions HQ Limited

Industrials — Engineering & Construction · NSE

₹0.49+₹0.02 (+4.26%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, 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, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Teamo Productions HQ Limited provides film production, distribution, and related media services in India and internationally.

IndustryEngineering & Construction

SectorIndustrials

Employees10

Annual revenue₹112 Cr

How does it make money?

Turns over ₹112 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 10 employees supports ₹11.23 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin0.6%

Net margin0.1%

Revenue / employee₹11.23 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

SIEMENS LTDP/E 88.8x · ROE 10.5%

What is its competitive advantage?Little sign of one

Returns on capital of 0.4% 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.

ROCE0.4%

ROE0.1%

Peer median ROE14.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -87% while net margin moved -74% 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-87%

Margin effect-74%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 48.9% a year
✗ Profit has declined at 67.5% a year

Quality vs. Valuation

Company Quality

33/ 100

Weak

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.

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.

Historical Valuation

Current P/E

8.2x

3Y Median

16.3x

40 monthly readings · mean 14.2x · range 1.4x–42.3x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 50% below its 3y median of 16.3x. 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 73% below the peer median of 30.1x.

vs. its own history

Cheap

16.3x median over 40 months · -50%

vs. sector peers

Cheap

30.1x median of 3 peers · -73%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

8.2x

P/B

0.37x

EV/EBITDA

80.4x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 8.2x the stock trades 50% below its own median of 16.3x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Debt is rising
Total debt is up 33% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 8.4% to 0.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 9.4% to 0.4% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 406% against revenue growth of -87% — customers are taking longer to pay.

Red Flags

5 items require attention · 2 high · 3 watch

🔴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 406% against revenue up -87% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 33% over 3 years.
🟡Profit is decliningFinancial
Net profit is down 97% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 113% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 50% 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 73% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 406% against revenue up -87%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 8.4% to 0.1%. 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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above -1%✓ 0.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹39 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 0.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 6.5x
How much operating profit can fall before interest stops being comfortably covered.

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

5 good · 3 neutral · 3 weak

Market Cap

₹54 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.2x

Cheap

Cheap against the generic band

P/B Ratio

0.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.06

Profitable

Profitable on a per-share basis

ROE

0.1%

Weak

Weak capital efficiency

ROCE

0.4%

Weak

Low return on total capital employed

Debt/Equity

1.02x

Moderate

Moderate leverage

Revenue Growth (YoY)

19.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

500.0%

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

-₹39 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹0.49

Operating Margin

25.1%

Good

Healthy core-business profitability

Net Margin

5.0%

Average

Average bottom-line conversion

Current Ratio

7.20

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.23

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

0.5 / 0.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹840 Cr	₹63 Cr	₹65 Cr	₹112 Cr	-48.9%
EBITDA	₹2 Cr	₹7 Cr	₹5 Cr	₹1 Cr	-26.4%
EBITDA Margin	0.2%	10.4%	7.5%	0.6%	—
PAT (Net Profit)	₹3 Cr	₹5 Cr	₹3 Cr	₹0 Cr	-67.5%
EPS	₹0.79	₹0.06	₹0.03	—	—
ROE	8.4%	4.6%	2.5%	0.1%	—
ROCE	9.4%	6.1%	3.6%	0.4%	—
Total Debt	₹1 Cr	—	—	₹1 Cr	+10.0%
Free Cash Flow	-₹7 Cr	-₹40 Cr	-₹26 Cr	-₹39 Cr	—

🔴 Revenue has shrunk at 48.9% a year over 3 years.

🔴 EBITDA has shrunk at 26.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 0.6% over 3 years.

🔴 PAT (Net Profit) has shrunk at 67.5% a year over 3 years.

🔴 ROE has fallen from 8.4% to 0.1% over 3 years (-8.3 pts).

🔴 ROCE has fallen from 9.4% to 0.4% over 3 years (-9.0 pts).

🔴 Total Debt has grown at 10.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹153 Cr

Total Liabilities

₹17 Cr

Total Debt

₹1 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹37 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

40.2%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive1 mixed1 negative3 general

Teamo Productions HQ Ltd Locks at Upper Circuit With 4.26% Gain — Buyers Queue, Sellers Absent

MarketsMojo, 16 Oct

Teamo Productions HQ Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 11 AugAnalyst view

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

Teamo Productions HQ Share Price and Technical View

Kalkine India, 21 Aug

Teamo Productions HQ Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Teamo Productions FY26 profit falls to ₹9.88 lakh

scanx.trade, 23 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Teamo Productions HQ standalone net profit rises 811.27% in the June 2026 quarter

Business Standard, 14 AugResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak5.9/20

🟡Financial HealthAdequate11.9/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak4.6/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4/10

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. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -1%0.6%
✗Debt / EBITDA stays below 2x2.0x
✗Free cash flow remains positive-₹39 Cr
✗ROCE stays above 8%0.4%
✓Interest cover stays above 4x6.5x