Prime Focus Ltd.
ISIN: INE367G01038 • Market Cap: ₹21,728 Cr
The 5-Pillar Quality Audit for Prime Focus Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (29.2%), Return on Capital Employed (15.2%), and equity compounding (—).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 7.31 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (1.9%) and 3Y PAT CAGR (-0.4%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 187.99 vs PEG of 23.21 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 60.7%, backed by 4.5% institutional ownership.
Key Fundamental Strengths
Consistent Market Standing (Large Cap)
Established player in the Media Entertainment & Publication sector with an overall fundamental quality score of 43/100.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 7.31)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Topline Stagnation (3Y Sales CAGR: 1.9%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Priced for Perfection (P/E: 187.99)
A steep valuation multiple of 187.99 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking PFOCUS against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 43/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Media Entertainment & Publication Sector Peer Comparison
Compare PFOCUS directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Prime Focus Ltd. (PFOCUS)Current | 43/100 | ₹21,728 Cr | 187.99 | 15.2% | 7.31 | — |
| Sun TV Network Ltd. (SUNTV) | 71/100 | ₹18,938 Cr | 12.38 | 19.8% | 0.00 | View |
| Nazara Technologies Ltd. (NAZARA) | 61/100 | ₹13,803 Cr | — | 2.8% | 0.05 | View |
| PVR INOX Ltd. (PVRINOX) | 73/100 | ₹11,796 Cr | 26.53 | 3.3% | 0.10 | View |
| Zee Entertainment Enterprises Ltd. (ZEEL) | 60/100 | ₹9,836 Cr | 47.82 | 9.2% | 0.01 | View |
| Saregama India Ltd (SAREGAMA) | 76/100 | ₹9,801 Cr | 44.26 | 16.5% | 0.00 | View |
Frequently Asked Questions: Prime Focus Ltd.
Q:What is the 5-Pillar Fundamental Score for Prime Focus Ltd. (PFOCUS)?
Prime Focus Ltd. has a RupeeTools Fundamental Score of 43/100, placing it in the 'Caution / Risky' category. Its pillar scores are: Profitability (67/100), Financial Health (38/100), Growth (28/100), Valuation (18/100), and Ownership Quality (60/100).
Q:Is PFOCUS fundamentally strong for long-term investment?
PFOCUS currently holds a moderate quality rating of 43/100. While it operates in the Media Entertainment & Publication sector, investors should monitor its debt health before initiating long-term positions.
Q:Does PFOCUS pass the Coffee Can Investing filter?
Yes! PFOCUS satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does PFOCUS compare against other Media Entertainment & Publication peers?
Within India's Media Entertainment & Publication sector, PFOCUS trades at a P/E of 187.99 and generates an ROCE of 15.2%. Compare its 5-Pillar score of 43/100 against top sector peers like Sun TV Network Ltd. (71/100), Nazara Technologies Ltd. (61/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.