UFO Moviez India Ltd

UFO Moviez India Ltd maintains a strong liquidity position, with cash and equivalents amounting to INR 1,001.26 million, representing 18.5% of total assets. The company's liquidity FPT score indicates a low liquidity risk, supported by a current ratio of 1.69, which is above the industry median. The operating cash flow of INR 936.52 million further reinforces its ability to meet short-term obligations.

Profitability metrics show a return on equity (ROE) of 2.1% and a return on assets (ROA) of 1.11%, both below the industry median for entertainment production firms. The net income of INR 60.30 million reflects a 5.1% margin, which is modest compared to peers. The company's operating income of INR 42.06 million indicates a 3.5% operating margin, suggesting room for improvement in cost management.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and regulatory changes. The absence of segment-specific financials limits the ability to assess performance across different lines of business.

Looking ahead, the company is projected to experience a 12% year-over-year revenue growth in the current fiscal year, driven by increased cinema attendance and new multiplex openings. However, the next fiscal year outlook is more conservative, with a projected 5% growth, reflecting potential market saturation and competitive pressures.

Risk factors include a low liquidity risk and a low dilution potential, with no immediate filing-based flags detected. The company's debt-to-equity ratio of 0.27 is well below the industry median, indicating a conservative capital structure. However, the long-term debt of INR 764.39 million could become a concern if interest rates rise significantly.

Recent events include the filing of the latest annual report, which disclosed plans for expanding the multiplex network and enhancing digital infrastructure. No significant regulatory or legal issues were reported in the latest filings, and the company has not issued any new shares in the past 12 months.

Revenue grew at a 48.6% CAGR over four years, demonstrating strong top-line expansion for the entertainment production company.

Net margin of 5.08% outperforms the 1.42% cohort median, indicating superior profitability relative to industry peers.

Cash conversion of 15.53 is best-in-class compared to the 0.73 median, highlighting exceptional efficiency in generating cash.

The company achieved positive free cash flow of INR 290.96 million in FY2024, marking a turnaround from previous deficits.

Revenue growth slowed drastically to just 3.5% year-over-year, suggesting the rapid expansion phase may be maturing.

Revenue INR 4.08B, +3,1% YoY; Operating income +227,4% YoY.

• ▍Revenue INR 4.08B, +3,1% YoY
• ▍Operating income +227,4% YoY
• ▍Net income +223,9% YoY
• ▍Free cash flow +271,4% YoY
• ▍Net margin 4.0%

Revenue INR 3.96B, +147,2% YoY; Operating income +83,9% YoY.

• ▍Revenue INR 3.96B, +147,2% YoY
• ▍Operating income +83,9% YoY
• ▍Net income +84,8% YoY
• ▍Free cash flow +117,4% YoY
• ▍Net margin -3.3%

Revenue INR 1.60B, +85,0% YoY; Operating income +29,2% YoY.

• ▍Revenue INR 1.60B, +85,0% YoY
• ▍Operating income +29,2% YoY
• ▍Net income +26,1% YoY
• ▍Free cash flow +43,3% YoY
• ▍Net margin -54.2%

Revenue INR 865.7M; Operating income -INR 1.51B.

• ▍Revenue INR 865.7M
• ▍Operating income -INR 1.51B
• ▍Net margin -135.8%