Touchwood Entertainment Ltd. (TOUCHWOOD) AI Stock Analysis

• Market Cap: ₹1.09B
• Dividend Yield: 0.38%
• Average Volume (3M): 18.09K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 1.16
• Revenue Growth: 134.18%
• EPS Growth: 105.54%
• Country: IN
• Employees: 18
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Advertising Agencies
• EPS (TTM): 0.34
• Shares Outstanding: 11,081,245
• 10 Day Avg. Volume: 3,480
• 30 Day Avg. Volume: 18,089
• PEG Ratio: 0.29
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 1.29
• P/FCF Ratio: -25.30
• 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: 67 Neutral
• Price Target: ₹112.00 ▲(5.92% Upside)

Touchwood Entertainment Ltd. has a solid financial foundation with strong revenue growth and effective equity management. However, the negative operating cash flow and neutral technical indicators suggest caution. The stock's valuation is fair, but the modest dividend yield offers limited income potential.

Positive Factors

Revenue Growth

Strong revenue growth indicates a robust market position and effective business model, enhancing long-term sustainability and competitiveness.

Financial Health

A low Debt-to-Equity ratio suggests financial stability, reducing solvency risk and providing flexibility for future investments and growth.

Profitability

High gross profit margins demonstrate efficient cost control and strong pricing power, supporting sustained profitability and competitive advantage.

Negative Factors

Operating Cash Flow

Negative operating cash flow can strain liquidity, affecting the company's ability to fund operations and invest in growth, impacting long-term stability.

Net Profit Margin

Lower net profit margins compared to gross margins indicate operational inefficiencies, which could hinder profitability and require cost management improvements.

Cash Flow Disparity

A disparity between free cash flow and net income suggests potential issues in cash conversion, impacting liquidity and financial flexibility.

Touchwood Entertainment Ltd. Business Overview & Revenue Model

Company Description

Touchwood Entertainment Limited engages in the event management activities in India. It provides wedding management, design and décor, destination wedding, entertainment, political and corporate event, curated IPs, and exhibition services. Touchwood Entertainment Limited was founded in 1997 and is based in New Delhi, India.

How the Company Makes Money

TOUCHWOOD generates revenue through multiple key streams, primarily from the production and licensing of film and television content. The company earns money by producing original shows and movies that are sold to streaming platforms, television networks, and international distributors. Additionally, TOUCHWOOD engages in co-production partnerships with other media companies, which allows for shared investment and risk while maximizing distribution opportunities. Merchandise licensing related to its popular productions also contributes to revenue. The company may also explore opportunities in advertising partnerships and sponsorships associated with its content, further diversifying its income sources.

Touchwood Entertainment Ltd. Financial Statement Overview

Summary

Touchwood Entertainment Ltd. shows strong revenue growth and solid financial health with effective equity management. However, operational cash flow management needs attention due to negative operating cash flow, which could impact long-term stability.

Income Statement

Touchwood Entertainment Ltd. has shown strong revenue growth, with a significant increase from the previous year, indicating a robust growth trajectory. The Gross Profit Margin is high, reflecting effective cost management and strong profitability. However, the Net Profit Margin, while positive, is not as high as the Gross Profit Margin, suggesting some operational cost pressures.

Balance Sheet

The company maintains a healthy Debt-to-Equity ratio, indicating a low level of leverage and financial stability. The Return on Equity is strong, showcasing efficient use of equity to generate profits. The Equity Ratio demonstrates a solid foundation with substantial equity backing the firm's assets, indicating a low risk of solvency issues.

Cash Flow

While the Free Cash Flow has improved, the company reported negative Operating Cash Flow in the most recent year, signaling potential operational cash challenges. The Free Cash Flow to Net Income Ratio suggests a disparity between reported profits and cash generation. However, there is improvement in Free Cash Flow growth, indicating potential for future cash flow stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	818.93M	688.54M	332.47M	367.09M	266.20M	100.58M
Gross Profit	788.89M	616.76M	332.47M	368.07M	266.24M	100.60M
EBITDA	92.34M	79.46M	50.39M	42.38M	36.45M	20.95M
Net Income	61.77M	51.86M	32.46M	24.66M	21.11M	9.80M
Balance Sheet
Total Assets	0.00	493.82M	429.38M	339.15M	185.30M	179.18M
Cash, Cash Equivalents and Short-Term Investments	224.73M	224.73M	266.76M	196.52M	71.60M	44.22M
Total Debt	0.00	13.57M	17.20M	2.68M	4.50M	6.57M
Total Liabilities	-406.86M	86.96M	69.95M	77.59M	28.50M	44.05M
Stockholders Equity	406.86M	400.40M	352.83M	254.84M	156.80M	135.12M
Cash Flow
Free Cash Flow	0.00	-35.08M	-50.45M	21.59M	28.20M	-1.75M
Operating Cash Flow	0.00	-1.43M	-24.01M	26.46M	39.50M	5.44M
Investing Cash Flow	0.00	-34.83M	-17.17M	503.00K	-7.60M	-6.92M
Financing Cash Flow	0.00	-8.06M	78.97M	77.12M	-4.50M	2.10M

Touchwood Entertainment Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 105.74
• 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:TOUCHWOOD, the sentiment is Negative. The current price of 105.74 is above the 20-day moving average (MA) of 103.51, above the 50-day MA of 103.47, and above the 200-day MA of 98.85, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 33.92 is Neutral, neither overbought nor oversold. The STOCH value of 13.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TOUCHWOOD.

Touchwood Entertainment Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOUCHWOOD	67 Neutral	₹1.09B	17.44	―	0.38%	134.18%	105.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BALAJITELE	59 Neutral	₹12.46B	14.78	―	―	-50.42%	2921.37%
SHEMAROO	51 Neutral	₹2.89B	-2.18	―	―	-2.93%	-50.62%
MUKTAARTS	47 Neutral	₹1.49B	-9.54	―	―	-3.03%	6.44%
RADAAN	39 Underperform	₹177.11M	-5.09	―	―	-79.97%	-219.35%
EROSMEDIA	37 Underperform	₹756.76M	-1.24	―	―	-69.51%	71.68%