Synopsis:
Media and Entertainment company’s shares are in focus after the company announced the issue of bonus shares.
A small cap company that is primarily engaged in the business of production and distribution of Media Entertainment & Content gained attention after announcing the board approved the issue of bonus shares.
With Market Capitalization of Rs. 1,425.87 crore, Panorama Studios International Ltd is trading at 201.05, up by 0.63 percent from its previous closing price of Rs. 199.80 per equity share. The stock reached a high of Rs. 204 in today’s trading session.
What’s the News?
Panorama Studios International Ltd’s board has approved to issue bonus shares in the ratio of 5:2, giving five new fully paid-up equity shares of Rs. 2 for 2 existing shares, with the record date to be announced later.
The Board also approved increasing the Authorised Share Capital from Rs. 16 cr (8 cr shares of Rs. 2 each) to Rs. 60 cr (30 cr shares of Rs. 2 each) to accommodate a higher paid-up capital.
A bonus issue is when a company distributes additional shares to its existing shareholders for free, according to a set ratio, using its earnings. Here, the company has chosen to issue bonus shares instead of paying out dividends from its profits.
Also Read: NBFC stock jumps 8% after company’s net profit increases by 762% YoY
About the Company
Panorama Studios International Limited, based in Mumbai and incorporated in 1980, operates in the entertainment and media sector in India. The company, along with its subsidiaries, provides film production and distribution, project development, postproduction, music, equipment rental, and publicity design services.
A return on equity (ROE) of about 25.7 percent, a return on capital employed (ROCE) of about 27.2 percent and debt to equity ratio of 0.41 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 32.9x lower as compared to its industry P/E 192x.
In Q1FY26, the company reported revenue of Rs. 136.35 cr, up 283 percent YoY from Rs. 35.59 cr in Q1FY25 but down 35.8 percent QoQ from Rs. 212.54 cr in Q4FY25. Net profit rose to Rs. 3.5 cr, a 45.8 percent increase YoY from Rs. 2.4 cr, but declined sharply 88.7 percent QoQ from Rs. 31.02 cr.
Written By Akshay Sanghavi
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