Shemaroo Entertainment Ltd. (SHEMAROO) AI Stock Analysis

• Market Cap: ₹2.67B
• Dividend Yield: N/A
• Average Volume (3M): 4.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• 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: 45 Neutral
• Price Target: ₹95.00 ▼(-15.18% Downside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is primarily held back by weak financial performance, led by negative margins, deteriorating profitability, and inconsistent free cash flow. Technicals show only a modest near-term improvement (above short-term averages) but momentum remains weak with a negative MACD and price still below the 200-day average. Valuation is also pressured by a negative P/E indicating losses and no provided dividend yield.

Positive Factors

Content monetization model

Shemaroo’s core business is owning and monetizing content rights across multiple distribution windows and models. That diversified revenue mix (licensing, digital ad/subscription, branded channels, ancillary rights) creates durable cash-generation levers tied to library value and recurring licensing cycles.

Moderate balance sheet stability

A reasonably managed debt-to-equity position provides financial flexibility to fund content acquisitions and distribution investments without immediate solvency pressure. Moderate leverage supports multi-window licensing strategies and cushions operational volatility over the next several quarters.

Operational cash generation

Positive operating cash flow relative to net income indicates the core content licensing and distribution operations are producing cash. Reliable OCF helps finance working capital, content renewals and targeted investments without sole reliance on external financing, supporting medium-term sustainability.

Negative Factors

Negative and declining profitability

Persistent negative gross and net margins mean the company is not covering direct and operating costs from core operations, undermining long-term reinvestment capacity. Continued margin erosion threatens licensing competitiveness and the ability to bid for or renew high-value content rights.

Inconsistent free cash flow

Volatile free cash flow constrains strategic spending on content and platform development and increases dependence on external funding. Inconsistency in FCF raises execution risk for multi-quarter initiatives and weakens resilience to cyclical ad and licensing revenue swings.

Rising liabilities and negative ROE

A declining equity ratio and negative return on equity signal deteriorating capital efficiency. Rising liabilities increase financial risk and interest exposure, limiting headroom for strategic investments and pressuring returns to shareholders if profitability is not restored.

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

Income statement weakness dominates: declining revenues and worsening profitability with negative gross and net margins and deteriorating EBIT/EBITDA margins. Balance sheet is moderately stable (manageable debt-to-equity) but rising liabilities and negative ROE add risk. Cash flow shows some operating cash generation, but free cash flow remains inconsistent.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Negative
• 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 Negative. The current price of 112 is above the 20-day moving average (MA) of 103.05, above the 50-day MA of 103.46, and below the 200-day MA of 113.15, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 31.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHEMAROO.

Shemaroo Entertainment Ltd. 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	₹63.58B	32.87	―	2.59%	26.97%	8.03%
BALAJITELE	57 Neutral	₹12.12B	-12.87	―	―	-50.42%	2921.37%
MUNJALAU	56 Neutral	₹7.83B	14.78	―	1.24%	13.34%	-26.93%
SHEMAROO	45 Neutral	₹2.67B	-1.32	―	―	-2.93%	-50.62%
MUKTAARTS	43 Neutral	₹1.17B	-24.35	―	―	-3.03%	6.44%
EROSMEDIA	37 Underperform	₹756.76M	-0.78	―	―	-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.