At a Glance:
Baweja Studios, led by Harry Baweja (yes, the director behind Love Story 2050), wants to be the next big content house. They make films, web series, and animations. FY25 revenue touched ₹75 Cr, profit is steady — but working capital is a mess, and cash flows are worse than a bad remake.
🧠 1. Business Model – Script to Screen
- 🎬 End-to-end media production house
- 🧪 In-house script R&D + full-stack film/web series production
- 💰 Owns content IP → monetizes via platforms, distributors
- 🎧 Covers feature films, OTT/web, music, animation, TV shows
Think of them as trying to be mini-Balaji + YRF + Rajshri — but on an SME budget
💰 2. Financials – Decent Box Office, But Where’s the Cash?
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM | ROE | ROCE |
|---|---|---|---|---|---|
| FY21 | ₹19.4 | ₹7.6 | 62% (!) | – | – |
| FY23 | ₹73.8 | ₹7.9 | 12% | 14% | 71% |
| FY24 | ₹64.3 | ₹8.2 | 17.6% | 8.3% | 19% |
| FY25 | ₹75.6 | ₹8.3 | 19% | 8.3% | 11.2% |
- EPS FY25: ₹4.49
- 3-Year Sales CAGR: 23%
- 3-Year PAT CAGR: 44%
- TTM PAT growth: Flat (1%) — 📉 slowdown?
📦 High OPM, flat PAT = cost creep? stalled monetization? Let’s investigate…
🔁 3. Working Capital – The Real Horror Film
| Metric | FY24 | FY25 |
|---|---|---|
| Debtor Days | 122 → 346 days 😱 | |
| Working Capital Days | 230 → 586 | |
| Cash from Operations | –₹18.3 Cr → –₹69.5 Cr 😨 | |
| Net Cash Flow | –₹46 Cr |
Even Karan Johar movies don’t take 346 days to get paid.
🧾 4. Valuation – The Price is Right-ish
- CMP: ₹53.2
- EPS: ₹4.49
- P/E: 11.8x
- Book Value: ₹56.4 → P/BV: 0.94x ✔️
- Market Cap: ₹98 Cr
🧠 Cheap on paper, but the paper may have delayed payments, interest costs, and “IOUs from OTT platforms”.
🎯 Fair Value Estimate:
| Scenario | EPS FY26E | P/E | FV |
|---|---|---|---|
| 🎬 Realistic | ₹5 | 12x | ₹60 |
| 🧂 Conservative | ₹4.5 | 10x | ₹45 |
| 🎟️ Optimistic OTT Deal | ₹6 | 15x | ₹90 |
🎯 FV Range: ₹45 – ₹90
(CMP ₹53 = mid-range, not screaming value, but not overbought either)
📉 5. Red Flags – More Than a Filmfare Jury
- ❌ Debtor Days = 346
- ❌ Cash flows negative for 2 years
- ❌ IPO cash almost fully utilized (₹67.7 Cr), but no dividend
- ❌ Borrowings jumped 9x in FY25 (₹3.6 Cr → ₹31 Cr!)
- ❌ FY25 Net Profit = only ₹8.3 Cr → same as FY24
🎬 Box office collections growing, but backstage chaos visible
🧍♂️ 6. Shareholding – No Drama Here
| Entity | Mar 2025 |
|---|---|
| Promoters | 70.69% (unchanged) |
| Public | 28.42% |
| FII/DII | Minimal (FII 0%, DII 0.89%) |
😇 Promoters not selling yet. But no institutional push either.
🏗️ 7. Where the Money Went (Post IPO)
- 🎥 Buying stake in Three Knot Studios
- 🎧 Expanding IP + music asset library
- 💼 No major infra capex → pure content-driven spending
- 📜 SEBI filing confirms fund utilization as of March 2025
But returns on content are long-cycle. Is cash burn just beginning?
🎬 Verdict – Promising Script, Risky Production
Baweja Studios Ltd is not a fraud. It’s a legit content house with decent financials on paper. But “content IP” is hard to value, working capital is out of control, and cash flow is a concern.
🟢 Why You Might Like It:
- Trading below book value
- Sticky revenues & margins
- Strong promoter hold
- Content/IP monetization could scale
🔴 Why You Should Be Wary:
- Absurd working capital
- Flat profit despite growth
- IPO money largely gone
- FII/DII are still not biting
🏷️ Tags:
Baweja Studios, Bollywood IPO, Film Production Stocks, SME Media Company, EduInvesting, Fair Value Analysis, OTT Content Stocks, Working Capital Trap
✍️ Written by Prashant | 📅 June 26, 2025
