Mukta Arts Limited (MUKTAARTS) AI Stock Analysis

• Market Cap: ₹950.84M
• Dividend Yield: N/A
• Average Volume (3M): 271.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -3.03%
• EPS Growth: 6.44%
• Country: IN
• Employees: 57
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): -0.64
• Shares Outstanding: 22,585,200
• 10 Day Avg. Volume: 408
• 30 Day Avg. Volume: 271
• PEG Ratio: -0.06
• Price to Book (P/B): -3.35
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 39.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ₹41.00 ▼(-34.28% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is primarily held down by weak financial performance—especially negative profitability and a high-risk balance sheet with negative equity—along with bearish technicals (downtrend across key moving averages and negative MACD). Valuation provides limited support because the company is loss-making (negative P/E) and no dividend yield is available.

Positive Factors

Operating & Free Cash Flow

Consistent positive operating and free cash flow provide a durable internal funding source for content production cycles and rights exploitation. This reduces near-term external financing needs, supports working capital through lumpy release schedules, and underpins the business during cyclical revenue periods.

Improving Gross Margin

An improving gross profit margin indicates better production or distribution economics or improved pricing/licensing mix. Sustained margin expansion can materially improve operating leverage in content businesses, helping the company move toward positive operating results even if revenue growth is uneven.

Content Revenue Streams & Library Monetization

A business model that combines production, distribution and library monetization creates multiple, semi-recurring cash streams. Durable library licensing and digital/OTT rights can provide recurring revenue long after releases, reducing reliance on single-title box office performance and smoothing long-term cash conversion.

Negative Factors

Negative Profitability

Persistent negative EBIT and net income erode retained capital and limit reinvestment capacity in new content. Ongoing losses make it harder to build scale, weaken bargaining power with platforms and distributors, and require continued reliance on alternative financing or asset sales to fund operations.

Negative Equity & High Leverage

A negative equity position and elevated debt-to-equity ratio indicate solvency risk and constrained financial flexibility. This structural weakness raises refinancing risk, increases cost of capital, and can limit the firm's ability to greenlight new projects or negotiate favorable partner terms over the medium term.

Steep Revenue Decline

A large year-over-year revenue decline undermines scale economics in filmed entertainment, reducing bargaining power for distribution/licensing and compressing margins. Prolonged top-line contraction makes it harder to leverage fixed content costs and threatens the sustainability of library monetization if new content inflows slow.

Mukta Arts Limited Business Overview & Revenue Model

Company Description

Mukta Arts Limited engages in the production, distribution, and exhibition of films in India. It operates through five segments: Software Division, Equipment Division, Education, Theatrical Exhibition Division, and Others. The Software Division segment is involved in film/TV production and distribution operations. This segment produces/co-produces movies and television content, as well as offers related services; and acquires movie rights for overseas and Indian distribution. The Equipment Division segment provides production equipment to other production houses and independent producers on hire. The Education segment operates an education, research, and training institute that offer training in various skills related to films, television, and the media industry. The Theatrical Exhibition Division segment comprises various services offered at theatres, including the sale of tickets, catering of food and beverages, and providing advertising services at theatres, as well as related services. The Others segment engages in the facility rental business. Mukta Arts Limited was founded in 1978 and is based in Mumbai, India.

How the Company Makes Money

Mukta Arts generates revenue primarily from filmed entertainment activities. Key earnings drivers typically include: (1) Production-related income from developing and producing films and/or other audio-visual content, where revenues are realized through monetization of the finished content; (2) Distribution and exploitation of content rights, such as licensing/sale of theatrical distribution rights, satellite/television rights, digital/OTT rights, music rights, and overseas rights, depending on the title and deal structure; and (3) Library monetization, where the company earns recurring income from licensing or re-licensing its existing catalog of films/content to broadcasters, digital platforms, or other distributors. Specific information on current segment-wise revenue mix, major counterparties/partnerships, and the exact contribution of each stream is null.

Mukta Arts Limited Financial Statement Overview

Summary

Weak profitability (negative EBIT and net income) and declining revenue weigh heavily, while the balance sheet is a major risk due to negative equity and high leverage. Operating and free cash flow are positive, providing some support but not enough to offset the profitability and solvency concerns.

Income Statement

Mukta Arts Limited has faced challenges with profitability as evidenced by consistent negative EBIT and net income over recent years. The gross profit margin improved from 2024 to 2025, but the company has seen a decline in total revenue during the same period. The net profit margin remains negative, indicating ongoing struggles with costs relative to revenue.

Balance Sheet

The balance sheet of Mukta Arts Limited shows high levels of debt relative to equity, with a negative stockholders' equity position, suggesting financial instability. The debt-to-equity ratio is concerning, reflecting potential solvency issues. The equity ratio is negative, indicating that liabilities exceed total assets, which is a significant risk factor.

Cash Flow

The company's cash flow statement shows some positive aspects, such as consistent positive operating cash flow. Free cash flow has been positive, albeit fluctuating. However, the net income to cash flow ratios suggest inefficiencies in converting profits into cash flow, which may point to underlying operational issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.68B	1.67B	1.95B	1.53B	1.22B	728.85M
Gross Profit	1.13B	625.91M	1.33B	1.12B	885.31M	38.92M
EBITDA	195.92M	174.23M	279.91M	157.04M	403.93M	217.54M
Net Income	-156.66M	-169.54M	-66.59M	-187.54M	62.20M	-123.02M
Balance Sheet
Total Assets	2.53B	2.42B	2.24B	2.43B	2.49B	2.44B
Cash, Cash Equivalents and Short-Term Investments	351.67M	246.76M	118.80M	159.19M	182.12M	185.33M
Total Debt	984.71M	1.19B	1.15B	1.24B	1.18B	1.05B
Total Liabilities	2.94B	2.81B	2.46B	2.56B	2.39B	2.43B
Stockholders Equity	-575.69M	-461.28M	-276.89M	-206.10M	45.62M	-31.43M
Cash Flow
Free Cash Flow	5.30M	38.84M	33.10M	37.12M	131.53M	320.97M
Operating Cash Flow	6.86M	117.40M	104.60M	176.97M	358.91M	332.19M
Investing Cash Flow	-2.85M	-45.60M	-47.55M	-98.25M	-246.74M	-7.12M
Financing Cash Flow	-3.81M	-75.48M	-109.35M	-92.22M	-159.38M	-217.25M

Mukta Arts Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MUKTAARTS, the sentiment is Negative. The current price of 62.39 is above the 20-day moving average (MA) of 50.55, above the 50-day MA of 57.09, and below the 200-day MA of 68.62, indicating a bearish trend. The MACD of -4.19 indicates Positive momentum. The RSI at 32.42 is Neutral, neither overbought nor oversold. The STOCH value of 15.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MUKTAARTS.

Mukta Arts Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SAREGAMA	59 Neutral	₹65.23B	32.87	―	2.59%	26.97%	8.03%
BALAJITELE	55 Neutral	₹10.31B	-12.87	―	―	-50.42%	2921.37%
MUKTAARTS	45 Neutral	₹950.84M	-24.35	―	―	-3.03%	6.44%
SHEMAROO	45 Neutral	₹2.60B	-1.32	―	―	-2.93%	-50.62%
RADAAN	43 Neutral	₹159.23M	-4.58	―	―	-79.97%	-219.35%
EROSMEDIA	37 Underperform	₹756.76M	―	―	―	-69.51%	71.68%

Mukta Arts Limited Corporate Events

Mukta Arts Files Revised FY24 Results After SEBI Compliance Clarification

Mukta Arts Limited has submitted a clarification to the National Stock Exchange of India regarding its financial results for the quarter and year ended 31 March 2024, acknowledging that it had inadvertently omitted the balancing figure note required under Regulation 33(3)(e) of the SEBI Listing Regulations. The company has now filed revised standalone financial results including the missing note and has stated that additional checks will be implemented to ensure full compliance in future submissions, aiming to address regulatory concerns and reassure stakeholders about the accuracy and completeness of its financial disclosures.

Exchange Seeks Clarification from Mukta Arts on September 2025 Quarter Results

Mukta Arts Limited, a film and media company involved in the production and distribution of entertainment content, operates within India’s media and entertainment sector. The stock exchange has sought clarification from Mukta Arts Limited regarding its financial results for the quarter ended 30 September 2025 under Regulation 33 of the SEBI Listing Obligations and Disclosure Requirements, and the company’s response is currently awaited, leaving investors and other stakeholders without further details on the nature or implications of the query.