Company Overview

Picturepost Studios Ltd is a creative and innovative post-production company specializing in film editing, Computer Generated Imagery (CGI), visual effects (VFX), video conversion, grading, and mastering for channels and digital platforms. The company covers the entire spectrum of post-production requirements, ranging from digital intermediates and visual effects to online editorials. It operates as a studio specializing in films, Web series, and advertisements, with a strong focus on high-end colour grading, motion design, visual effects, and online editing.

With a team of professionals, the company offers a wide range of services to cater to the diverse needs of the entertainment industry, specializing in visual effects, post-production, color grading, motion design, and creating captivating visual experiences for global audiences. The company's post-production activities include Offline Editing Services, Computer Generated Imagery, Mastering and Quality Check, Visual Effects (VFX), Color Grading, and Creative Editorial.

Corporate History and Structure

Picturepost Studios Limited was originally formed as a Limited Liability Partnership Firm under the name "M/s. Prodace Solutions LLP" on August 22, 2019. Subsequently, its name was changed to "Picturepost Studios LLP" on August 26, 2022.

The LLP then converted into a Private Company, "Picturepost Studios Private Limited," on June 01, 2023. Following this, the company was converted into a Public Limited Company, "Picturepost Studios Limited," with a fresh Certificate of Incorporation dated May 14, 2024, issued by the Registrar of Companies, Mumbai.

Stock Market Performance and Valuation

The shares of Picturepost Studios Ltd were listed on the NSE SME on August 9, 2024. The Picturepost Studios IPO price band was set at ₹24 per share. The scrip listed at ₹30, a premium of 25% over the initial public offer (IPO) price. On the NSE, shares were quoting at ₹31.50, a premium of 29.17% compared to the issue price of ₹24.

The stock has shown significant volatility since its listing. The 52-week high for Picturepost Studios Ltd share price is ₹45.60, while the 52-week low is ₹24.90. The current market capitalization of Picturepost Studios Ltd (PPSL) stands at ₹86.23 Cr as of April 17, 2025.

Financial Performance

#### Key Financial Metrics

Picture Post Studios Ltd has an operating revenue of ₹67.16 Cr on a trailing 12-month (TTM) basis. The company shows an outstanding annual revenue growth of 104%. It boasts a great pre-tax margin of 16% and an exceptional Return on Equity (ROE) of 41%. The company is debt-free, possessing a strong balance sheet that enables it to report stable earnings growth across business cycles.

For the period ending March 31, 2024, the company recorded revenue from operations of ₹21.97 crore and a net profit of ₹2.92 crore. The TTM profit for Picturepost Studios is ₹3.28 Crores, with ₹2.92 Crores reported for March 2024.

#### Debt Management and Working Capital

The debt of Picturepost Studios has been decreasing. The latest reported debt as of September 2024 is ₹1.22 Crs, which is less than the ₹5.48 Crs reported in March 2024. However, the company has high debtors, averaging 166 days, and working capital days have increased significantly from 26.2 days to 90.7 days.

IPO and Capital Structure

Picture Post Studios' IPO was a book-built issue totaling ₹18.72 crores, consisting entirely of a fresh issue of 78.00 lakh shares. The issue was subscribed an impressive 180.31 times. Post-IPO, the promoter and promoter group shareholding diluted from 93.02% to 68.27%.

The company intends to utilize the net proceeds for capital expenditure requirements towards the purchase of equipment and software, prepayment of certain borrowings, and for general corporate purposes. Ahead of the IPO, Picturepost Studios successfully raised ₹5.29 crore from anchor investors on August 1, 2024.

Management and Operations

Key management personnel include Parish Tekriwal as Chairman and Abhishek Sharma as the Company Secretary for Picturepost Studios Ltd. As of April 30, 2024, the company employed 105 individuals across various departments.

Market Position and Industry Classification

Picturepost Studios Ltd (PPSL) operates within the Consumer Discretionary sector, specifically in the Animation & Post-Production Services sub-sector. The company serves the entertainment industry by providing comprehensive post-production services, positioning itself as a specialized player in the visual effects and film production support sector.

The company's recent financial performance indicates strong growth momentum with exceptional ROE and revenue growth. However, investors should consider the working capital challenges and high debtor days when evaluating the stock. The successful IPO listing and strong subscription rates suggest market confidence in the post-production and visual effects sector.