Vashu Bhagnani Industries’ turmoil has long been in the making

Published: 10th July 2024 By: Value Research

Vashu Bhagnani Industries’ fall from stardom

The company is making headlines for all the wrong reasons. The speculation that it is under dire financial distress has plunged its share price by 37% between June 21-July 8, 2024.

But it is also a wealth compounder!

In the last one year (between July 4, 2023 and June 21, 2024), its share has climbed 16x from Rs 25 to Rs 406! So, why is it falling so hard now?

Box office flops

Once known for comedy hits like 'Coolie No. 1' and 'Biwi No. 1,' its recent releases have been back-to-back failures. Reports say it owes Rs 250 crore in debt & has sold off its Mumbai office.

Hand in hand with uncertainty

The company denied selling the property. Its books show a net debt of Rs 23 crore as of FY24. But the financial turmoil is not new and its key parameters are shaky .

Stock rally only due to exuberance?

Falling profitability, staggering receivable days of 313 days , poor cash flows and a high P/E of 176 times weakens the stock’s prospects. Get the full picture of its lacklustre financials from the link below. From hero to zero: Why this iconic film producer is in crisis

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