🧠 At a Glance
Basilic Fly Studio is a high-growth VFX services company based in Chennai with clients across the US, UK, and Canada. From ₹25 Cr sales in FY22 to ₹304 Cr in FY25, the company is going multibagger in both profit and popcorn. With an ROCE of 31%, global clientele, and surprisingly clean numbers for an entertainment stock, the question is — can it fly higher or is the climax already priced in?
1️⃣ Introduction with Hook
What do Deadpool, Loki, The Mandalorian, and your last favorite Netflix thriller have in common?
Probably not Basilic Fly.
But give it time.
This Chennai-based VFX house has quietly executed over 10,000 projects, across 900 movies, 2,000+ web series, and 8,000 commercials — while growing at 3-digit CAGR. It IPO’d in 2023, and since then? 📈
- Revenue: Up 12x in 3 years
- PAT: Up 46x
- ROCE: A healthy 31%
- FCF? Still a work in progress 😅
The multibagger crowd is circling. But does Basilic have real juice, or is this another digital illusion?
2️⃣ WTF Do They Even Do? (Business Model)
🧑🎨 Basilic Fly Studio is in the post-production VFX business.
Core services:
- Visual Effects (VFX) for film, OTT, ads
- 2D & 3D conversion (important for Hollywood releases)
- Matchmove, compositing, stereo, CG & environment design
🛰️ Clients are from Hollywood, Canada, UK, etc. — essentially anyone who wants cheaper, faster post without compromising quality.
🏢 Offices in Chennai, Canada & UK. Operations scaled globally post IPO.
3️⃣ Financials – Growth, Profit & Margin
📊 Key Metrics (Consolidated)
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM % | ROCE | ROE |
|---|---|---|---|---|---|
| FY22 | ₹25 | ₹1 | 6% | – | – |
| FY23 | ₹79 | ₹28 | 49% | 172% | – |
| FY24 | ₹103 | ₹37 | 48% | 63% | – |
| FY25 | ₹304 | ₹46 | 21% | 31% | 25% |
🚀 Revenue CAGR (3Y): 129%
📈 PAT CAGR (3Y): 255%
⚠️ Margins have dropped from 49% → 21% — probably due to expansion and cost normalization.
4️⃣ Valuation – Cheap, Meh, or Crack?
📌 CMP: ₹423
📌 Market Cap: ₹984 Cr
📌 P/E: 24.4x
📌 P/B: 4.87x
Compared to peers:
| Company | P/E | OPM | ROE |
|---|---|---|---|
| Tips Industries | 52x | 66% | 86% |
| Saregama | 48x | 24% | 13% |
| Prime Focus | N/A | 21% | -16% |
| Basilic Fly | 24x | 21% | 25% |
🎯 Verdict: Valuation is not crazy. For a company doubling revenue yearly, 24x P/E = meh.
5️⃣ What’s Cooking – News, Triggers, Drama
🗞️ Recent developments:
- 🎧 No UPSI shared during investor meetings (we checked)
- 🧾 NSE sought clarification on Q4 FY25 results — standard regulatory
- 🔍 Auditors issued unmodified opinion (a rare clean chit in this industry)
- 🧠 Concall hints at studio expansions & more offshore contracts
💬 No scandals. No creative accounting. Just quiet scaling. We like.
6️⃣ Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Total Debt | ₹4 Cr | ₹4 Cr | ₹2 Cr | ₹51 Cr 😬 |
| Reserves | ₹3 Cr | ₹15 Cr | ₹100 Cr | ₹179 Cr |
| Networth | ₹4 Cr | ₹32 Cr | ₹123 Cr | ₹202 Cr |
| D/E Ratio | 1.0x | 0.13x | 0.02x | 0.25x |
🧮 FY25 debt jumped — but well-covered by rising reserves. Still manageable.
7️⃣ Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (Capex) | CFF (Debt/Equity) | Net Cash |
|---|---|---|---|---|
| FY23 | ₹11 | -₹5 | -₹1 | ₹6 |
| FY24 | -₹28 | -₹32 | ₹53 | -₹7 |
| FY25 | ₹10 | -₹72 | ₹89 | ₹27 |
⚒️ Capex explosion in FY24-25 = infrastructure + overseas offices
🧪 FCF-negative for now. But justified for a fast-scaling tech service firm.
8️⃣ Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 25% |
| ROCE | 31% |
| Debtor Days | 93 ✅ (down from 189) |
| Dividend Yield | 0% 🚫 |
| OPM | 21% ⬇️ from 49% |
| Working Cap | 150 days ⚠️ |
No payout yet. But debtor cycle is improving, which is rare for service exporters.
9️⃣ P&L Breakdown – Show Me the Money
FY25 Snapshot:
- 🎬 Sales: ₹304 Cr
- 💼 EBITDA: ₹65 Cr (21% margin)
- 💰 PAT: ₹46 Cr
- 💳 EPS: ₹16.11
- 🧾 Tax rate: 13% (low, flagged in Screener)
High PAT = partly low tax. But margin compression suggests hiring & scale costs are catching up.
🔟 Peer Comparison – Who Else in the Game?
| Company | Sales (₹ Cr) | PAT (₹ Cr) | OPM % | ROE % | P/E |
|---|---|---|---|---|---|
| Tips Industries | ₹311 | ₹166 | 66% | 86% | 52x |
| Saregama | ₹1,171 | ₹201 | 24% | 13% | 48x |
| Prime Focus | ₹3,599 | -₹100 | 21% | -16% | NA |
| Basilic Fly | ₹304 | ₹46 | 21% | 25% | 24x |
🎯 Verdict: Only Basilic is combining high growth, profitable, international and affordable valuation.
🔢 Miscellaneous – Shareholding, Promoters
| Shareholder Type | Holding (Mar ’25) |
|---|---|
| Promoters | 59.9% |
| FIIs | 0.28% |
| DIIs | 0.01% |
| Public | 39.81% |
| No. of holders | 5,401 |
🛑 No dilution drama. FIIs small but rising. No pledging. Decent skin in the game.
🧠 EduInvesting Verdict™
If Prime Focus and Red Chillies VFX had a nerdy little brother who did everything clean, profitably, and quietly — you’d get Basilic Fly Studio.
- ✅ Massive revenue growth
- ✅ Global client base
- ✅ Reasonable P/E at 24x
- ✅ Clean balance sheet + improving cash flows
- ⚠️ OPM falling, capex-heavy phase, no dividend
🎯 FV Range:
- FY25 EPS = ₹16.11
- Assuming FY26 EPS = ₹22 (30% growth)
- Fair P/E range = 25x to 30x
- 🎯 Fair Value Range = ₹550 to ₹660
At CMP ₹423, this VFX stock is not a mirage. But you’ll need conviction to sit through the capex and margin compression arc.
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Basilic Fly Studio, VFX stock, SME multibagger, Indian entertainment, visual effects, Prime Focus, Tips, Saregama, EduInvesting
