Shares of this micro-cap VFX stock jumped nearly 2 percent after securing strategic partnerships with top Chinese studios, backed by government support, to expand its presence in China’s entertainment market.
Price Movement
In Wednesday’s trading session, Phantom Digital Effects Ltd’s share price reached an intra-day high of Rs.344.00 per share, rising 1.8 percent from its previous close of Rs.337.95 each.
What Happened
On 15 October 2024, Phantom Digital Effects Limited, a leading VFX studio, announced strategic partnerships with major Chinese production houses, backed by government support.
These collaborations aim to expand PhantomFX’s presence in China’s entertainment sector through film projects and short-form content. The partnerships include agreements to provide VFX for three feature films and 100 short dramas, with an estimated value of $1–$1.2 million.
Key Highlights of the Collaboration
PhantomFX’s strategic partnerships with leading Chinese studios provide direct access to high-budget films and the booming short-form content market, enhancing its growth potential.
The collaboration leverages PhantomFX’s expertise in VFX and explores AI-generated content (AIGC), transforming production workflows.
Additionally, the partnership aims to set new standards in short-form content and explore VFX applications beyond entertainment, including smart home technology, unlocking new revenue streams and long-term growth opportunities.
Management Commentary
Binu Joshua Sam, Director of PhantomFX, commented on the partnership that: “These partnerships with the Chinese government and leading production houses present exciting opportunities for PhantomFX, not only in the entertainment space but also in emerging areas such as smart home technology and Al-generated content.
These partnerships mark a significant milestone in PhantomFX’s expansion within China’s entertainment industry and position the company at the forefront of technological innovation in visual effects.”
Financial Overview
In its latest financial update, the company reported remarkable net sales of Rs.26.12 crore for Q1 FY25, reflecting a 10.5 percent increase from Rs.23.65 crore in Q1 FY24. Moreover, net profits surged 2.5 percent to Rs.6.21 crore in Q1 FY25, compared to Rs.6.06 crore in Q1 FY24.
About the company
Phantom Digital Effects Ltd is a creative visual effects (VFX) studio based in India, incorporated in 2016. It specialises in providing high-end VFX services for films, web series, and commercials, and has established itself as a Trusted Partner Network (TPN) certified company.
Written by – Siddesh S Raskar
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.
