Shemaroo Entertainment (NSEI:SHEMAROO) - Share price, News & Analysis

SHEMAROO fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

SHEMAROO Stock Overview

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

Rewards

Trading at 96% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings have declined by 43.7% per year over past 5 years

Interest payments are not well covered by earnings

Volatile share price over the past 3 months

Does not have a meaningful market cap (₹3B)

Shemaroo Entertainment Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Shemaroo Entertainment
Historical stock prices
Current Share Price	₹114.65
52 Week High	₹180.95
52 Week Low	₹94.65
Beta	1.16
1 Month Change	-16.38%
3 Month Change	-5.40%
1 Year Change	12.02%
3 Year Change	-67.87%
5 Year Change	-64.52%
Change since IPO	-32.95%

Recent News & Updates

May 12

The Returns On Capital At Shemaroo Entertainment (NSE:SHEMAROO) Don't Inspire Confidence

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

	SHEMAROO	IN Entertainment	IN Market
7D	-0.8%	1.3%	0.7%
1Y	12.0%	39.1%	10.6%

Return vs Industry: SHEMAROO underperformed the Indian Entertainment industry which returned 40.7% over the past year.

Return vs Market: SHEMAROO exceeded the Indian Market which returned 9% over the past year.

Price Volatility

Is SHEMAROO's price volatile compared to industry and market?
SHEMAROO volatility
SHEMAROO Average Weekly Movement	8.8%
Entertainment Industry Average Movement	7.2%
Market Average Movement	7.2%
10% most volatile stocks in IN Market	10.0%
10% least volatile stocks in IN Market	4.8%

Stable Share Price: SHEMAROO is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: SHEMAROO's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of Indian stocks.

About the Company

Founded	Employees	CEO	Website
1962	514	Raman Maroo	https://www.shemarooent.com

Shemaroo Entertainment Limited engages in the distribution of content for broadcasting of satellite channels, physical formats, and emerging digital technologies in India. The company is involved in the movie production; and syndication business that distributes its content to satellite, cable, and terrestrial networks, as well as distributes videos, CRBT, live streaming, etc. through operator and own branded portals. It also deals in curating and providing content to DTH services on DTH platforms; and provides inflight eclectic mix of content service.

Shemaroo Entertainment Fundamentals Summary

How do Shemaroo Entertainment's earnings and revenue compare to its market cap?
SHEMAROO fundamental statistics
Market Cap	₹3.11b
Earnings (TTM)	₹65.09m
Revenue (TTM)	₹3.83b

47.8x

P/E Ratio

0.8x

P/S Ratio

Is SHEMAROO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SHEMAROO income statement (TTM)
Revenue	₹3.83b
Cost of Revenue	₹3.14b
Gross Profit	₹689.30m
Other Expenses	₹624.21m
Earnings	₹65.09m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.39
Gross Margin	17.99%
Net Profit Margin	1.70%
Debt/Equity Ratio	42.9%

How did SHEMAROO perform over the long term?

See historical performance and comparison

Valuation

Is Shemaroo Entertainment undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SHEMAROO (₹114.65) is trading below our estimate of fair value (₹2899.98)

Significantly Below Fair Value: SHEMAROO is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: SHEMAROO is poor value based on its PE Ratio (47.8x) compared to the Indian Entertainment industry average (45.6x).

PE vs Market: SHEMAROO is poor value based on its PE Ratio (47.8x) compared to the Indian market (20.1x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SHEMAROO's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: SHEMAROO is good value based on its PB Ratio (0.5x) compared to the IN Entertainment industry average (1.4x).

Future Growth

How is Shemaroo Entertainment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.0%

Forecasted Media industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Shemaroo Entertainment has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Shemaroo Entertainment performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-43.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SHEMAROO has high quality earnings.

Growing Profit Margin: SHEMAROO became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: SHEMAROO's earnings have declined by 43.7% per year over the past 5 years.

Accelerating Growth: SHEMAROO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SHEMAROO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Entertainment industry (-5.5%).

Return on Equity

High ROE: SHEMAROO's Return on Equity (1.1%) is considered low.

Financial Health

How is Shemaroo Entertainment's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SHEMAROO's short term assets (₹8.6B) exceed its short term liabilities (₹3.0B).

Long Term Liabilities: SHEMAROO's short term assets (₹8.6B) exceed its long term liabilities (₹127.9M).

Debt to Equity History and Analysis

Debt Level: SHEMAROO's net debt to equity ratio (41.5%) is considered high.

Reducing Debt: SHEMAROO's debt to equity ratio has reduced from 70% to 42.9% over the past 5 years.

Debt Coverage: SHEMAROO's debt is well covered by operating cash flow (33.1%).

Interest Coverage: SHEMAROO's interest payments on its debt are not well covered by EBIT (1.2x coverage).

Balance Sheet

Dividend

What is Shemaroo Entertainment current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SHEMAROO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SHEMAROO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SHEMAROO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SHEMAROO's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: SHEMAROO is not paying a notable dividend for the Indian market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SHEMAROO has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure

CEO

Raman Maroo (71 yo)

0.42

Tenure

₹5,126,000

Compensation

Mr. Raman Hirji Maroo serves as the Managing Director of Shemaroo Entertainment Limited. Mr. Maroo joined Shemaroo in 1974. He has been an Executive Director of Shemaroo Entertainment Limited since Decembe...

CEO Compensation Analysis

Compensation vs Market: Raman's total compensation ($USD65.85K) is above average for companies of similar size in the Indian market ($USD38.73K).

Compensation vs Earnings: Raman's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: SHEMAROO's management team is considered experienced (4.5 years average tenure).

Board Members

Experienced Board: SHEMAROO's board of directors are seasoned and experienced ( 12.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31