Touchwood Entertainment Ltd. (TOUCHWOOD) AI Stock Analysis

• Market Cap: ₹804.83M
• Dividend Yield: 0.38%
• Average Volume (3M): 18.09K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.07
• Revenue Growth: 134.18%
• EPS Growth: 105.54%
• Country: IN
• Employees: 18
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Advertising Agencies
• EPS (TTM): 1.60
• 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: 68 Neutral
• Price Target: ₹77.00 ▼(-27.18% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is led by strong underlying financial performance (growth, profitability, and balance sheet stability), but is materially offset by weak technical conditions (price below major averages and bearish momentum) and a cash-flow caution (negative operating cash flow). Valuation is neutral-to-slightly supportive with a moderate P/E but limited help from a low dividend yield.

Positive Factors

Revenue and gross margin strength

Touchwood's recent strong revenue growth paired with a high gross profit margin indicates durable demand and pricing or cost advantages in its services. This combination supports sustainable operating leverage, funds reinvestment into content and sales, and underpins profitability over the next 2–6 months.

Healthy balance sheet and low leverage

The company's low leverage and solid equity backing reduce solvency and refinancing risk, while strong ROE signals efficient use of shareholder capital. These balance-sheet strengths provide financial flexibility to pursue growth or absorb shocks without materially increasing financial distress risk.

Improving free cash flow trends

Improvement in free cash flow suggests management is beginning to convert profits into usable cash, which supports capex, content investment or deleveraging. If sustained, this trend enhances liquidity and reduces dependence on external funding over a multi-month horizon.

Negative Factors

Negative operating cash flow

Negative operating cash flow indicates the core business is not generating sufficient cash from operations, forcing reliance on financing or working capital. Persisting OCF weakness can constrain investing, limit payout flexibility and undermine the durability of reported earnings through the next several quarters.

Declining EPS

Negative EPS growth shows per-share profitability has fallen, which can reflect margin pressures, cost increases, or one-offs that erode retained earnings. Continued EPS decline reduces internal funding for growth and weakens fundamentals that support longer-term shareholder returns.

Operational cost pressure (net margin lag)

A gap between high gross margins and weaker net margins signals that SG&A, overhead or other operating expenses are eroding profitability. Structural cost pressure limits scalable margin expansion; unless management cuts costs or improves operating efficiency, net margin recovery may be slow.

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

Strong income statement and balance sheet signals (revenue growth, high gross margin, solid ROE, and low leverage), but cash flow quality is a clear constraint due to negative operating cash flow and weaker cash conversion versus net income.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	835.79M	688.54M	332.47M	367.09M	266.20M	100.58M
Gross Profit	812.11M	616.76M	332.47M	368.07M	266.24M	100.60M
EBITDA	95.12M	79.46M	50.39M	42.38M	36.45M	20.95M
Net Income	62.40M	51.86M	32.46M	24.66M	21.11M	9.80M
Balance Sheet
Total Assets	556.24M	493.82M	429.38M	339.15M	185.30M	179.18M
Cash, Cash Equivalents and Short-Term Investments	240.67M	224.73M	266.76M	196.52M	71.60M	44.22M
Total Debt	39.98M	13.57M	17.20M	2.68M	4.50M	6.57M
Total Liabilities	133.18M	86.96M	69.95M	77.59M	28.50M	44.05M
Stockholders Equity	416.68M	400.40M	352.83M	254.84M	156.80M	135.12M
Cash Flow
Free Cash Flow	-82.98M	-35.08M	-50.45M	21.59M	28.20M	-1.75M
Operating Cash Flow	-38.78M	-1.43M	-24.01M	26.46M	39.50M	5.44M
Investing Cash Flow	-61.49M	-34.83M	-17.17M	503.00K	-7.60M	-6.92M
Financing Cash Flow	25.33M	-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: Positive
• STOCH: Neutral

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 77.81, above the 50-day MA of 89.33, and above the 200-day MA of 99.91, indicating a bearish trend. The MACD of -5.84 indicates Positive momentum. The RSI at 28.02 is Positive, neither overbought nor oversold. The STOCH value of 29.55 is Neutral, 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	68 Neutral	₹804.83M	16.12	―	0.38%	134.18%	105.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BALAJITELE	55 Neutral	₹11.47B	-12.87	―	―	-50.42%	2921.37%
SHEMAROO	45 Neutral	₹2.68B	-1.32	―	―	-2.93%	-50.62%
MUKTAARTS	43 Neutral	₹1.11B	-24.35	―	―	-3.03%	6.44%
RADAAN	43 Neutral	₹155.44M	-4.58	―	―	-79.97%	-219.35%
EROSMEDIA	37 Underperform	₹756.76M	―	―	―	-69.51%	71.68%