Shemaroo Entertainment Ltd. (SHEMAROO) AI Stock Analysis

• Market Cap: ₹2.68B
• Dividend Yield: N/A
• Average Volume (3M): 4.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -2.93%
• EPS Growth: -50.62%
• Country: IN
• Employees: 663
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): -20.29
• Shares Outstanding: 27,320,300
• 10 Day Avg. Volume: 1,025
• 30 Day Avg. Volume: 4,716
• PEG Ratio: -0.03
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 3.73
• 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: 51 Neutral
• Price Target: ₹99.00 ▼(-11.61% Downside)

Shemaroo Entertainment Ltd. faces significant financial challenges, with declining profitability and inconsistent revenue growth being the most impactful factors. Technical analysis provides some short-term bullish signals, but valuation concerns due to negative earnings and lack of dividend yield weigh heavily on the stock's attractiveness.

Positive Factors

Diversified content monetization

Owning and curating a broad content library with licensing, digital distribution, branded channels and ancillary rights creates multiple durable revenue channels. This diversification reduces single-platform exposure, supports recurring licensing cycles, and enhances long-term cash generation potential.

Moderate balance sheet stability

Reasonably managed leverage and substantial assets provide financial flexibility to fund content acquisition and absorb cyclical demand shocks. This lowers near-term refinancing risk, preserves investment capacity for distribution and library refreshes, and supports operational resilience over the medium term.

Positive operating cash generation

A positive operating cash flow to net income ratio indicates the core media distribution business generates real cash despite accounting losses, enabling reinvestment in content rights and platform activity. Sustained operational cash generation reduces reliance on external funding and supports working capital needs.

Negative Factors

Declining revenue and earnings

Negative revenue growth and a severe EPS decline signal persistent demand or monetization issues. Continued top-line contraction erodes scale, weakens negotiating leverage with platforms and broadcasters, and constrains free cash available for content investment, hindering medium-term growth prospects.

Eroding profitability and margins

A negative gross margin and net losses point to structural pricing or cost pressures in content acquisition/distribution. Even if revenues stabilize, persistent margin erosion undermines reinvestment capacity and may force asset sales or cuts to content spend, damaging long-term competitiveness.

Revenue dependence on licensing renewals

Earnings materially hinge on renewing and expanding licensing deals and on the library's monetizability. This creates structural revenue risk: adverse changes in partner terms, platform mix, or failed renewals can materially reduce licensing income and destabilize medium-term cash flows.

Shemaroo Entertainment Ltd. Business Overview & Revenue Model

Company Description

Shemaroo Entertainment Limited engages in the distribution of content for broadcasting of satellite channels, physical formats, and emerging digital technologies in India. The company is involved in the movie production; online video streaming over the top (OTT) platform; and syndication business that distributes its content to satellite, cable, and terrestrial networks. It also deals in curating and providing content to DTH services on DTH platforms; and provides inflight eclectic mix of content service. In addition, the company offers studio services comprising digital intermediate, digital restoration, VFX, telecine, film scanning, film grading, etc. to various content owners and distributors, as well as offers mobile applications. Further, it company offers pre-loaded devotional speakers. Shemaroo Entertainment Limited was founded in 1962 and is based in Mumbai, India.

How the Company Makes Money

Shemaroo generates revenue through multiple streams, including film distribution, where it earns from theatrical releases and licensing fees. The company also profits from its extensive catalog of content by selling and licensing rights to cable and satellite television networks, as well as digital platforms. Additionally, Shemaroo has ventured into digital streaming services, monetizing its content through subscription models and ad-based revenues. Significant partnerships with OTT platforms and telecommunications companies enhance its reach and revenue potential, while its investment in content creation and curation allows for continuous income generation from diverse audiences.

Shemaroo Entertainment Ltd. Financial Statement Overview

Summary

Shemaroo Entertainment Ltd. faces significant financial challenges, with declining profitability and inconsistent revenue growth. The balance sheet shows moderate stability but increased liabilities, and cash flow management is inconsistent despite some positive signals.

Income Statement

Shemaroo Entertainment Ltd. has been facing declining revenues and worsening profitability. The gross profit margin turned negative in the latest year, indicating a significant cost pressure or revenue decline. The net profit margin is also negative, reflecting struggles with operational efficiency and cost management. The revenue growth rate is volatile, with a recent decline, and both EBIT and EBITDA margins have deteriorated, showing operational challenges.

Balance Sheet

The balance sheet shows moderate stability with a debt-to-equity ratio that is reasonably managed, though the company's equity ratio has decreased slightly, indicating a higher reliance on debt financing. Return on equity has turned negative, signaling a need to improve profitability. The company maintains a substantial amount of assets, but the increasing liabilities are concerning.

Cash Flow

Cash flow analysis reveals challenges in maintaining consistent free cash flow, with recent improvements overshadowed by historical negative trends. The operating cash flow to net income ratio is positive, suggesting some operational cash generation, but the free cash flow to net income ratio is inconsistent, highlighting the need for better cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.70B	6.85B	7.07B	5.57B	3.81B	3.11B
Gross Profit	-353.57M	-281.31M	645.37M	1.73B	1.35B	325.93M
EBITDA	-1.15B	-797.53M	44.95M	506.90M	377.14M	135.94M
Net Income	-1.14B	-849.59M	-406.67M	93.64M	52.70M	-214.83M
Balance Sheet
Total Assets	0.00	8.66B	10.22B	10.38B	8.89B	8.77B
Cash, Cash Equivalents and Short-Term Investments	25.21M	25.21M	2.35M	19.73M	80.10M	71.18M
Total Debt	0.00	3.05B	3.40B	3.21B	2.54B	2.69B
Total Liabilities	-4.69B	3.98B	4.73B	4.51B	3.12B	3.05B
Stockholders Equity	4.69B	4.72B	5.53B	5.92B	5.82B	5.76B
Cash Flow
Free Cash Flow	0.00	701.22M	154.27M	-368.03M	409.86M	92.44M
Operating Cash Flow	0.00	751.52M	255.88M	-172.32M	441.34M	101.48M
Investing Cash Flow	0.00	-14.79M	-74.66M	-190.01M	-23.95M	-7.02M
Financing Cash Flow	0.00	-727.33M	-188.14M	355.50M	-409.77M	-93.23M

Shemaroo Entertainment Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 112.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHEMAROO, the sentiment is Neutral. The current price of 112 is above the 20-day moving average (MA) of 101.62, above the 50-day MA of 105.71, and below the 200-day MA of 113.16, indicating a bearish trend. The MACD of -2.46 indicates Positive momentum. The RSI at 42.14 is Neutral, neither overbought nor oversold. The STOCH value of 24.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SHEMAROO.

Shemaroo Entertainment Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAREGAMA	63 Neutral	₹65.69B	32.31	―	2.59%	26.97%	8.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BALAJITELE	59 Neutral	₹10.18B	11.83	―	―	-50.42%	2921.37%
MUNJALAU	56 Neutral	₹7.21B	21.80	―	1.24%	13.34%	-26.93%
SHEMAROO	51 Neutral	₹2.68B	-1.79	―	―	-2.93%	-50.62%
MUKTAARTS	43 Neutral	₹1.30B	-7.93	―	―	-3.03%	6.44%
EROSMEDIA	37 Underperform	₹756.76M	-1.24	―	―	-69.51%	71.68%

Shemaroo Entertainment Ltd. Corporate Events

Shemaroo Entertainment Releases Q3 and 9M FY26 Earnings Presentation

Shemaroo Entertainment Limited has released its earnings presentation for the quarter and nine months ended December 31, 2025, in line with its disclosure obligations under SEBI’s listing regulations. The presentation, made available to stock exchanges and on the company’s website, provides investors and stakeholders with detailed financial and operational updates for Q3 and the first nine months of FY26, supporting transparency and informed decision-making in the market.

Shemaroo Entertainment Grants Stock Options to Employees

Shemaroo Entertainment Limited announced that its Nomination and Remuneration Committee has approved the grant of 9,000 stock options to eligible employees under the Shemaroo Entertainment Limited Employees Stock Option Scheme – 2021. The exercise price for these options is set at Rs. 67 per option, representing a 41% discount to the market price as of November 20, 2025. This move is likely to enhance employee engagement and align their interests with the company’s growth objectives.