At a Glance
Cinevista Ltd, once a household name in TV content, is now more famous for its financial soap opera than its dramas. Q1 FY26 delivered a tiny PAT of ₹0.99 Cr on revenue of ₹4.63 Cr – the first positive number in what feels like a century. But don’t pop the popcorn yet. This is after years of eroded net worth, recurring losses, and OPM swinging from -4,000% to 42% (yes, those numbers are real). The company has ditched TV programming, pivoting to real estate rentals and occasional production gigs. Share price at ₹18 trades at 2x book value, but with ROE at -47.7%, it’s more of a penny trap than a comeback blockbuster.
Introduction
Cinevista was the creator of iconic serials in the early 2000s – think Dil Chahta Hai meets Ekta Kapoor drama. Fast forward to 2025, and it’s battling survival with tiny revenues, selling bits of its past glory, and trying to repurpose its Mumbai studio into something profitable.
This quarter’s numbers look like a faint heartbeat: sales up from ₹0.03 Cr (Dec 2024) to ₹4.63 Cr now. A 163% YoY profit growth? Sure – when last year’s base was a deep loss, even a rupee looks like growth. The company is alive, but only barely.
Business Model (WTF Do They Even Do?)
Originally a TV software and film production house, Cinevista owned studios, sound stages, and post-production assets. Over time, it lost relevance as streaming giants took over. High capital needs, low returns, and declining audience pushed it out of TV programming. Now:
- Revenue streams: Occasional ad/commercial production, studio rentals, real estate leases.
- New vertical: Real estate development (early stage, cash-hungry).
- Problem: Still carrying a legacy of debt, losses, and shrinking cash reserves.
In short, Cinevista’s current model is “whatever brings in cash.”
Financials Overview
Q1 FY26 revenue was ₹4.63 Cr with an OPM of 42%, giving an operating profit of ₹1.94 Cr. PAT at ₹0.99 Cr is a huge swing from a ₹-25.8 Cr loss in Q1 FY25. But let’s be real – this is more an accounting recovery than operational miracle.
Annual FY25 was another red year:
- Revenue: ₹12 Cr
- PAT: ₹-32 Cr
- EPS: ₹-5.51
- Net worth: Eroded to ₹39 Cr
Observation: The company survives on sporadic income while costs & debt interest bleed it dry.
Valuation
1. P/E Method
- EPS (TTM) = -₹5.06 (negative)
- P/E: Not meaningful (loss-making).
2. EV/EBITDA
- FY25 EBITDA negative → EV/EBITDA useless.
3. DCF (Loose)
- With cash burn and negative equity trends, DCF is a joke.
- Fair Value Range: ₹10 – ₹15 (speculative).
Conclusion: Valuation is pure speculation. No margin of safety.
What’s Cooking – News, Triggers, Drama
- Pivot to real estate – hoping studio complex becomes cash cow.
- Positive Q1 PAT – first sign of life in ages.
- AGM scheduled – expect corporate talk, not action.
- Ongoing survival mode – no new big shows, no OTT tie-ups announced.
Balance Sheet (Standup Edition)
| Assets | ₹ Cr |
|---|---|
| Total Assets | 146 |
| Fixed Assets | 23 |
| Other Assets | 121 |
| Liabilities | ₹ Cr |
|---|---|
| Borrowings | 25 |
| Other Liabilities | 70 |
| Net Worth | 39 |
Remark: Balance sheet is like a haunted set – lots of empty rooms, ghosts of old investments.
Cash Flow – Sab Number Game Hai
| Year | Ops (₹ Cr) | Investing (₹ Cr) | Financing (₹ Cr) |
|---|---|---|---|
| FY23 | -3 | -0 | 7 |
| FY24 | -13 | -6 | 16 |
| FY25 | -1 | -0 | 1 |
Remark: Operating cash is negative or negligible – no real breathing room.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | -47.7% |
| ROCE | -19.9% |
| P/E | NA |
| PAT Margin | -95% |
| D/E | 0.6x |
Remark: Ratios scream distress. This is not a sexy turnaround, just a band-aid on a bullet wound.
P&L Breakdown – Show Me the Money
| Year | Revenue ₹ Cr | EBITDA ₹ Cr | PAT ₹ Cr |
|---|---|---|---|
| FY23 | 1 | -40 | -28 |
| FY24 | 12 | -18 | -32 |
| FY25 | 16 | -15 | -29 |
Remark: Revenue uptick in FY25, but losses remain sticky like old chewing gum under a desk.
Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Saregama | 1,173 | 200 | 46x |
| Tips Music | 325 | 169 | 44x |
| Balaji Telefilms | 453 | 85 | 13x |
| Cinevista | 16 | -29 | NA |
Remark: Peers are making hits. Cinevista is still stuck in reruns.
Miscellaneous – Shareholding, Promoters
- Promoters: 67.4% (they’re staying, but why?)
- Public: 32.6% (mostly stuck retail).
- No institutional interest.
- AGM scheduled Sept 24, 2025 – may reveal restructuring hints.
EduInvesting Verdict™
Cinevista is a nostalgia stock – it reminds investors of a time when TV content paid bills. Today, it’s a penny stock surviving on scraps. Q1’s positive PAT is more like a cameo appearance than a lead role. For a true turnaround, Cinevista needs:
- Clear business pivot (OTT, partnerships)
- Consistent profits
- New capital infusion
SWOT
- Strengths: Studio assets, promoter stability, historical brand value.
- Weaknesses: Recurring losses, eroded net worth, negative cash flows.
- Opportunities: Real estate monetization, OTT partnerships.
- Threats: Debt creep, regulatory pressure, continued irrelevance.
Final Word:
Unless management pulls a rabbit out of the hat, Cinevista stays a high-risk speculative bet. Traders may enjoy occasional spikes, but investors? Better grab popcorn and just watch.
Written by EduInvesting Team | 01 Aug 2025
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Cinevista, Penny Stock, Media Production, Q1 FY26 Results, Distressed Small Cap
