Shares of this micro-cap media stock jumped 7 percent in Wednesday’s trading session after the company posted robust Q2 results. In the past five trading sessions, the company’s stock has gained close to 20 percent.
With a market capitalization of Rs 424.46 crores, the stocks of Shemaroo Entertainment Limited started their trading session on Wednesday at Rs 155.75 and currently trades at Rs 156.15, gaining approximately 7 percent as compared to the previous closing levels of Rs 146.55 apiece.
Such sharp movements in the company’s stock prices today were witnessed after it published the financial results for Q2FY24, i.e., for the quarter ended September 2023 through a regulatory exchange filing.
On a sequential basis, the company reported an increase in both the prime business indicators such as operating revenues and after-tax profits.
The operating revenues rose from Rs 154 crores during Q1FY23-24 to Rs 199 crores during Q2FY23-24, and, the after-tax profit figures, during the same time horizon, transitioned from a loss of Rs 1 crore to a profit of Rs 5.45 crores.
In addition, the company, on a YoY basis, showed positive movements in the metrics mentioned above with the operating revenues increasing from Rs 147 crores during Q2FY22-23 to Rs 199 crores during Q2FY23-24, and, the after-tax profits, jumping from Rs 3.45 crores to Rs 5.45 crores exhibiting an increase of 58 percent.
Historically, the company has slowly came back to track with increasing its return on equity (RoE) and return on capital employed (RoCE) with the former moving up from 0.88 percent during FY21-22 to 1.63 percent during FY22-23, and, the latter, during the same time period, shifting up from 3.70 percent to 5.20 percent.
The latest shareholding pattern data, as per the September 2023 quarter, portrays the company’s Promoters holding a 65.88 percent stake followed by the Public (retail) investors holding a 34.04 percent stake in the company.
Shemaroo Entertainment Limited is an entertainment company associated with the business of motion picture, video & television program distribution. Having business operations throughout the country, the company distributes content for satellite channels, physical formats and digital technologies, such as internet, broadband, mobile, direct-to-home, etc.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
