Shares of this micro-cap stock, a prominent player in the event management sector surged over 16 percent after reporting net profit growth of 940 percent in the December quarter from the previous quarter.
Price Movement
In Thursday’s trading session, the share price of Touchwood Entertainment Ltd reached an intra-day high of Rs.127.00 per share, rising 16.08 percent from its previous close of Rs.109.40 apiece. The shares have retreated since then and are currently trading at Rs.117.46 per share.
Quarterly Performance
Touchwood Entertainment Ltd experienced a substantial increase in its stock price, largely driven by impressive growth in both revenue and net profit as outlined in the company’s financial results.
In the third quarter of FY25, Touchwood Entertainment Ltd’s net consolidated profit surged remarkably by 940 percent quarter-on-quarter, reaching Rs.3.25 crore compared to Rs.0.31 crore in Q2 FY25. Year-over-year, the company also saw a notable net profit increase of 200 percent, rising from Rs.1.08 crore in the quarter ending December FY24.
The company reported revenue of Rs.36.11 crore, representing an exceptional 814 percent increase from Rs.3.94 crore in Q2 FY25. Additionally, there was a 516 percent year-on-year growth, with revenue up from Rs.6.99 crore in Q3 FY24.
Touchwood Entertainment’s stock is currently trading at a Price-to-Earnings ratio of 23.8, a similar range of the industry average of 22.3. Regarding return ratios, the Return on Capital Employed (ROCE) is 15.4 percent, while the Return on Equity (ROE) stands at 11.8 percent.
Services Offered
Touchwood provides a comprehensive suite of services, covering event planning, marketing, production, and legal support. Its offerings span mega ground concerts, private social events, wedding planning and decor, destination weddings, political activations, and artist management. With expertise in handling diverse entertainment and promotional needs, Touchwood ensures seamless event execution across various domains.
Segmental Revenue
The company generated revenue from multiple segments, with Event Management Services contributing Rs. 16.25 crore, Trading bringing in Rs. 2.41 crore, and Construction Services accounting for Rs. 17.44 crore.
Written by – Siddesh S Raskar
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