Shares of this multibagger stock under the ‘micro-cap’ category jumped up to 7 percent in Friday’s trading session after the Government of India unveiled initiatives boosting the visual effects (VFX) sector in the country.
With a market capitalization of Rs 367.27 crores, the stocks of Digikore Studios Limited opened their trading hour on Friday at Rs 601.15 and currently trade at Rs 579.95. The company’s scrip witnessed an intra-day high price of Rs 614 indicating a jump of around 7 percent compared to the previous close of Rs 575.25 apiece.
Through a recent regulatory filing with the National Stock Exchange (NSE), the company announced that the Indian Government unveiled an initiative aimed at bolstering the country’s animation and visual effects (VFX) industry.
The Govt has decided to provide ‘direct cash rebates’ to international projects utilizing Indian services. This strategic move is poised to boost India’s VFX and animation sector into an era of tremendous growth and global recognition.
Moreover, Foreign production houses availing pure animation post-production and visual effects services in India can receive up to 30 percent of the Qualifying Expenses (75 percent of the contract value) along with an additional bonus of 5 percent, with a maximum rebate capped at Rs 300 million.
“This initiative not only enhances our competitive edge but also reinforces India’s status as a global hub for animation and VFX production.”, commented Mr. Abhishek More, MD, Digikore Studios Limited, on the Govt’s initiatives.
According to the latest half-yearly financials reported, the company reported net sales at Rs 24 crores and profit after tax (PAT) numbers of around Rs 6 crores.
Keeping a purview of the last year, the company’s stock delivered multibagger returns of 115 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.15 lakhs.
As per the latest presentations, the global VFX market size reached $9.3 Billion in 2022. Looking forward, IMARC Group, a market researcher, expects the market to reach $15.2 Billion by 2028, exhibiting an 8.5 percent CAGR during 2023-2028.
Incorporated in 2000, Digikore Studios Limited is a Pune-based company engaged in the business of visual effects (VFX), video graphics, and animation. The company offers VFX for TV series, films, commercials, web series, documentaries, and virtual production.
Written by Amit Madnani
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