Vision Cinemas Limited

Communication Services — Entertainment · BSE

₹1.05+₹0.01 (+0.96%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

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, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vision Cinemas Limited, together with its subsidiaries, identifies, designs, builds, and operates multiplexes in India. It also provides marketing services to multiplexes. In addition, the company engages in movie exhibitions, advertisement films, and movie screening services.

IndustryEntertainment

SectorCommunication Services

Employees4

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹-15 reaches shareholders as profit, with ₹-5 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹22.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹22.3 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 -1.8% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +123% while net margin moved -113% 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+123%

Margin effect-113%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 6.8 points over the period

Quality vs. Valuation

Company Quality

44/ 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 generation is improving
Free cash flow is up 28993% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 5.2% to -1.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 1.6% to -1.8% — 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 -1481.0x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 30.2 points, from 25.6% to -4.6%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 151.0x to -1481.0x.

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 25.6% to -4.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 5.2% to -1.6%. 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
3 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

1Revenue growth stays above 23% a year✓ 30.6% CAGR
Latest reported year was -72.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -7%✓ -4.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✗ -1481.0x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ -1.8%
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
✓ 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

₹7 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

0.09x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.15

Loss-making

Negative earnings per share — the business is losing money

ROE

-1.6%

Weak

Weak capital efficiency

ROCE

-1.8%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-72.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-45.1%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

-1.0%

Weak

Assets generate little profit

Operating Margin

-19.6%

Weak

Thin margins leave little room for error

Net Margin

-14.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

6.10

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.81

Market-like

Moves roughly in line with the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1.1 / 1.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹2 Cr	₹3 Cr	₹1 Cr	+30.6%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	-₹0 Cr	—
EBITDA Margin	25.6%	1.8%	1.2%	-4.6%	—
PAT (Net Profit)	₹0 Cr	-₹0 Cr	-₹0 Cr	-₹0 Cr	—
EPS	₹0.06	₹-0.01	₹-0.01	₹-0.02	—
ROE	5.2%	-1.3%	-1.1%	-1.6%	—
ROCE	1.6%	-1.3%	-1.0%	-1.8%	—
Free Cash Flow	₹0 Cr	-₹0 Cr	-₹0 Cr	₹2 Cr	+562.6%

🟢 Revenue has grown at 30.6% a year over 3 years.

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

🔴 EBITDA Margin has fallen from 25.6% to -4.6% over 3 years (-30.2 pts).

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

🔴 EPS has turned negative, from ₹0.06 to ₹-0.02.

🔴 ROE has fallen from 5.2% to -1.6% over 3 years (-6.8 pts).

🔴 ROCE has fallen from 1.6% to -1.8% over 3 years (-3.4 pts).

🟢 Free Cash Flow has grown at 562.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹12 Cr

Total Liabilities

₹4 Cr

Total Debt

—

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

50.3%

Peer Comparison

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

Recent News

6 general

Vision Cinemas Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 07 Oct

Compare VISION TECHO with

Equitymaster, 11 Oct

Vision Cinemas shareholders reject related party transactions at 33rd AGM

scanx.trade, 18 Sept

Understanding the tech behind Dolby Cinema: What makes it different from a regular theatre?

The Economic Times, 17 Oct

Vision Cinemas Ltd. Peer Comparison – Compare with Others

Value Research, 03 Sept

Vision Cinemas claims SEBI exemption from corporate governance filings

Indian Television Dot Com, 11 Apr

Watch Items

Revenue growth is negative (-72.2%) on the latest reported period — check if this is one-off or a trend.
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

StrongGrowth

MiddlingFinancial Health · Valuation

WeakBusiness Quality · 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.

2 of 5 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑