Microcap stock engaged in offering a full suite of visual effects services, including VFX for films, television, Web series, and many more, hit a 5 percent upper circuit in the day’s trade upon signing a strategic agreement with Reliance Group Firm.
Price Action
With a market capitalization of Rs. 285 Crores, the shares of Digikore Studios Limited hit a 5 percent upper circuit at Rs. 450.80 per equity share, from its previous day’s close price of Rs. 429.35.
What Happened
Digikore Studios Limited has successfully signed a 58-episode Branded Content contract with Viacom18 Media Private Limited for hosting of 58 episodes Branded Content on Jio Cinema.
This marks a significant milestone in its expansion into Branded Content, to deliver entertaining and engaging content to millions of viewers on Jio Cinema and various other OTT platforms Worldwide.
This contract will help Digikore Studios Limited generate about Rs. 30 crores in revenue by the end of FY25 and achieve its revised targeted revenue of Rs. 70 crores for FY25.
The Intellectual Property (IP) of these shows will be held by Digikore Studios in perpetuity and worldwide. The same will be hosted on various other OTT platforms Worldwide and digital media channels such as Binge Fever (owned by Digikore) on YouTube and will accelerate content monetization from FY26 onwards. The company will generate recurring revenue on these episodes for years to come.
About the Company
Digikore Studios Limited is a visual effects studio that offers a full suite of visual effects services, it provides a variety of services, including VFX for films, VFX for television, VFX for Web series, VFX for television commercials, VFX for documentaries, and VFX for 360 footages.
It provides its services for set extension and crowd multiplication, rotoscopy, reflection removal, general cleanup, wire and rig removal, monitor camps, muzzle flash composition, green screen compositing, driving camps, day to night, match move, CG blood camps, beauty fix, and others.
Financials & Ratios
Its revenue from operations grew by 30.55 percent from Rs. 34.44 Crores in FY23 to Rs. 44.96 Crores in FY24, accompanied by profits of Rs. 4.37 Crores to Rs. 9.54 Crores.
In terms of return ratios, it has reported a return on equity (ROE) of 38.8 percent and a return on capital employed (ROCE) of 44 percent. In terms of liquidity, it has reported a debt-to-equity ratio of 0.21.
Written by: Bharath K.S
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