V R Films & Studios Limited

Communication Services — Entertainment · BSE

₹11.23+₹0.73 (+6.95%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

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. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:05 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 V R Films & Studios Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

V R Films & Studios Limited engages in film distribution and dubbing in India. It offers lipsync, lector, and para dubbing; and forced narration, audio description and restoration, audio books, mixing, and subtitling services.

IndustryEntertainment

SectorCommunication Services

Employees36

Annual revenue₹12 Cr

How does it make money?

Turns over ₹12 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 36 employees supports ₹32.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin24.7%

Net margin8.1%

Revenue / employee₹32.9 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.

BHARTI AIRTEL LIMITEDP/E 39.8x · ROE 20.2%

VODAFONE IDEA LIMITEDP/E 3.6x · ROE —

What is its competitive advantage?Some evidence

ROCE of 19.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.3%

ROE10.9%

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 +3% while net margin moved +14% 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+3%

Margin effect+14%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.0% — barely ahead of inflation
✗ Profit CAGR of only 5.5%
✗ Latest-year revenue growth of -51.8% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

54/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

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

P/E (Trailing)

Not meaningful

P/B

1.32x

EV/EBITDA

6.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 21.3% to 24.7% over 3 years.
Debt is being paid down
Total debt is down 22% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 6.7% to 10.9%.
Return on capital is rising
ROCE has improved from 11.5% to 19.3%.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.3% 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 21.3% to 24.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 22% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 1.0% 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.
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 23%✓ 24.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 2.8x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 1.0% CAGR
Latest reported year was -51.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹12 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

1.32x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.59

Loss-making

Negative earnings per share — the business is losing money

ROE

10.9%

Moderate

Moderate capital efficiency

ROCE

19.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.85x

Moderate

Moderate leverage

Revenue Growth (YoY)

-51.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

125.7%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹11.23

Operating Margin

-81.0%

Weak

Thin margins leave little room for error

Net Margin

-6.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.81

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.66

Defensive

Steadier than the market

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

11.4 / 12.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11 Cr	₹12 Cr	₹12 Cr	₹12 Cr	+1.0%
EBITDA	₹2 Cr	₹1 Cr	-₹3 Cr	₹3 Cr	+6.1%
EBITDA Margin	21.3%	7.2%	-26.9%	24.7%	—
PAT (Net Profit)	₹1 Cr	-₹1 Cr	-₹4 Cr	₹1 Cr	+5.5%
EPS	₹0.93	₹-0.56	₹-3.41	₹0.88	-2.0%
ROE	6.7%	-5.3%	-47.9%	10.9%	—
ROCE	11.5%	-0.6%	-53.5%	19.3%	—
Total Debt	₹10 Cr	₹10 Cr	₹7 Cr	₹8 Cr	-8.1%
Free Cash Flow	-₹1 Cr	₹0 Cr	₹3 Cr	₹1 Cr	—

🟡 Revenue has been broadly flat over 3 years (1.0% a year).

🟢 EBITDA has grown at 6.1% a year over 3 years.

🟢 EBITDA Margin has risen from 21.3% to 24.7% over 3 years (+3.4 pts).

🟢 PAT (Net Profit) has grown at 5.5% a year over 3 years.

🟡 EPS has been broadly flat over 3 years (-2.0% a year).

🟢 ROE has risen from 6.7% to 10.9% over 3 years (+4.2 pts).

🟢 ROCE has risen from 11.5% to 19.3% over 3 years (+7.9 pts).

🟢 Total Debt has shrunk at 8.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹18 Cr

Total Liabilities

₹9 Cr

Total Debt

₹8 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.7%

Corporate Actions

Ex-Dividend Date

23 Sept 2022

Peer Comparison

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

Recent News

1 positive5 general

ROBOKIDZ EDUVENTURES LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 14 Oct

VR Films turns profitable in FY26 with ₹96.62 lakh PAT; sets Sept 4 AGM

scanx.trade, 13 Aug

Austin Engineering Company Ltd leads gainers in 'B' group

Business Standard, 22 Sept

CRESTO Stock Price and Chart — NSE:CRESTO

TradingView, 11 Sept

V R FILMS & STUDIOS LIMITED Share Price

Upstox, 05 Apr

Shivalik Bimetal Controls consolidated net profit rises 44.91% in the June 2026 quarter

Business Standard, 07 AugResults

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

Watch Items

Revenue growth is negative (-51.8%) 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.

DalalBaazaar Thesis

🟢Business QualityStrong13.1/20

🟢Financial HealthStrong15.4/20

🔴GrowthWeak7.5/20

🟡ProfitabilityModerate7.2/15

🟡ValuationFair7.1/15

🔴RiskHigh4.4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 23%24.7%
✗Debt / EBITDA stays below 2x2.6x
✗Interest cover stays above 3x2.8x
✗Revenue growth stays above 4% a year1.0% CAGR
✓Free cash flow remains positive₹1 Cr