🧠 1. At a Glance
Once a household name behind Indian television content, BAG Films & Media is now a micro-cap enigma. Profitable? Yes. Growing? Barely. And with a stock price that still needs a 5x move just to reach old highs, investors are asking: is there anything worth binge-watching here?
🎥 2. WTF Do They Even Do?
- BAG Films & Media Ltd (BSE: 532507, NSE: BAGFILMS) was incorporated in 1993.
- It creates content across genres — drama, comedy, movies, OTT, news and non-news.
- Once known for shows like Siddhant and Kumkum, it now pitches content to MX Player, Applause, etc.
- Also owns “News24” and “E24 Bollywood”.
- Operates in a highly competitive space with bigger players like Balaji Telefilms, Zee, Sun TV.
💰 3. Financials Overview – Profit, Margins, ROE, Growth
| Metric | Value (FY25) |
|---|---|
| Revenue | ₹136 Cr |
| Net Profit | ₹10 Cr |
| Operating Margin | 15% |
| 5Y Profit CAGR | 22% |
| 5Y Sales CAGR | 2.4% (yikes) |
| ROE (FY25) | 4.03% |
| ROCE (FY25) | 7.73% |
| Book Value | ₹7.95 |
| Current Price | ₹7.57 |
🧾 TL;DR:
- Profits have improved recently.
- But sales haven’t.
- Returns (ROE/ROCE) are low.
📊 4. Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹7.57
- P/E: 24.1x
- Price/Book: 0.95x (looks cheap… or is it just dead?)
Fair Value Range (EduInvesting):
- Using 5Y avg EPS of ~₹0.20, assigning a conservative P/E of 20x:
- FV = ₹4 – ₹5
- If FY25 EPS of ₹0.31 is sustainable, FV = 0.31 x 20 = ₹6.2
- ✅ Edu FV Range: ₹4.5 – ₹6.5 (stock is currently above that!)
🔥 5. What’s Cooking – News, Triggers, Drama
- 834% YoY profit growth in Mar ’25 quarter (₹6.49 Cr).
- OPM jumped to 24% – highest in years.
- AGM scheduled on Sept 11, 2025.
- Slight FII activity (up to 0.08%, now dropped again).
- However, no big IP, no major OTT hits announced.
🧾 6. Balance Sheet – How Much Debt, How Many Dreams?
- Borrowings = 0. Yes, it’s now debt-free. ✅
- Reserves up to ₹118 Cr.
- But working capital days = 273 (was 502!). Still bloated.
- Debtor Days = 179 (down from 232). Recovering slowly.
💸 7. Cash Flow – Sab Number Game Hai
| FY | CFO (₹ Cr) | FCF? |
|---|---|---|
| FY23 | -5 | ❌ |
| FY24 | +19 | ✅ |
| FY25 | +2 | Meh |
- Cash from ops has turned positive, but not consistent.
- FCF sustainability is questionable.
📉 8. Ratios – Sexy or Stressy?
- ROE: 4.03%
- ROCE: 7.73%
- No dividend ever (not even for TRP milestones 😆)
- Promoter holding: 46.86%
- Public: 53.13% (61,227 shareholders!)
💵 9. P&L Breakdown – Show Me the Money
| Year | Sales (₹ Cr) | Net Profit (₹ Cr) | OPM % | EPS (₹) |
|---|---|---|---|---|
| FY23 | 112 | -1 | 11% | -0.08 |
| FY24 | 132 | 7 | 16% | 0.20 |
| FY25 | 136 | 10 | 15% | 0.31 |
- OPM has improved from 11% to 15%
- EPS trend positive but low in absolute terms
🤼 10. Peer Comparison – Who Else in the Game?
| Name | P/E | ROE % | OPM % | CMP/BV |
|---|---|---|---|---|
| Sun TV | 13.5 | 15.7 | 53 | 2.03 |
| Zee | 18.3 | 6.8 | 14.6 | 1.22 |
| TV Today | 12.5 | 9.3 | 10 | 1.16 |
| BAG Films | 24.1 | 4.0 | 15.2 | 0.95 |
- BAG Films has higher P/E than peers despite lower ROE 🤔
🧩 11. Miscellaneous – Shareholding, Promoters
- Promoter Holding stable at 46.86% for years
- No major FII/DII holding
- Public holding high (53.13%) with 61K shareholders – typical of microcap media stocks
🧠 12. EduInvesting Verdict™
BAG Films is like that one serial your mom still watches out of habit. The company has cleaned up its debt, posted a few profitable quarters, and looks statistically cheap. But with poor sales growth, weak RoE, and zero dividends, it’s hard to binge-invest in this story.
Unless a content hit or major OTT deal changes the script, this looks like a “watchlist, not watch again” stock.
✍️ Written by Prashant | 📅 July 1, 2025
Tags: BAG Films, penny stocks, media industry, TV broadcasting, smallcap stocks, stock analysis, Indian media stocks
