Hi @VijayBenda,

Thank you for sharing your thoughts. You said “I might either loose…” – Charlie Munger said, “You don’t have to pee on an electric fence to learn not to do it.”

As indicated by Nishanth, the thread is rich with information, and all the details are there. However, you mentioned some data points, so let me respond to them:

460 cr – They don’t have that much cash. They may have less than 100 cr. Please recheck. Indeed, they went negative on cash in FY 23, then did some QIP/warrant @ Capriglobal.

Bonus issue: Smart move to distribute cash? How???
A bonus issue has no impact whatsoever. It’s similar to asking whether you want a pizza in 4 or 8 slices—does it make any difference?

I was banging my head when I saw the shareholding data of EMT:
When the promoter held 75% / public held 10% with Nos of shareholder 47,600,
Now, the promoter holds 64.3% / public holds 30.5% with Nos at 744,165 (15x).
Recent data will be more horrible.

so with a Capacity of about 5 lakhs, and assuming an average price of about 4 lakhs , thats about 200cr is that right?

Thanks for your inputs. You are Right. Dr. Sumitha Nandan was appointed as ED, Hence, yes – we can say next generation there in board.

But as a minority shareholder – I am concerned if the Promoter Family cum management is serious in growing the company (and generating sustainable risk adjusted return) – if not better than the competition – then atleast at par with competition.

If not, why not to have a professional management – who have the fire in belly for growth.

For Ex: Aditya Birla Capital (ABC) – They brought in ex-ICICI ED to run the show and not some Birla family kid.

Manappuram & ABC – both NBFC – hence comparing.

Note: My thoughts are just to discover the reasons for continuous under-performance of Manappuram, and not to pin-point anything negative about an individual or group. Thanks.

Future Growth Guidance

Strong Revenue Growth: The company has provided future guidance with a projected 20%-25% revenue growth** for FY25 (conservative estimates), with expectations for upward potential once market conditions improve​.

International Expansion: PhantomFX is focusing heavily on international markets, especially North America and Europe. The acquisition of Tippett Studio is expected to drive substantial growth, with potential revenue increases projected to exceed previous years by multiple times​.

New Segments: Management is expanding into animation and gaming, which opens new revenue streams. Their existing projects, such as securing major contracts from streaming platforms like Netflix and Disney, and moving into proprietary IP (intellectual property) projects, position them for continued success in the entertainment industry​.

Scalability: The company expects to expand its workforce by 250-300 employees across India, the US, and Canada. This workforce expansion is aligned with increasing demand for projects in both the domestic and international markets​.

Risks

Receivables and Cash Flow Risk: There have been mentions of a significant increase in receivables (INR 40-50 crores), and a notable percentage of these receivables have been delayed due to external factors such as the North American strike in the entertainment industry​.
“This indicates potential cash flow risks that could impact short-term liquidity.”

Project Delays Due to Strikes: The strikes in North America have delayed several international projects, which impacted billing cycles. Although the company has diversified into domestic markets, the strikes slowed revenue recognition from key markets like Hollywood​.

Dependence on Key Projects: While PhantomFX has a strong order book and project pipeline, the financial performance is dependent on the timely completion and success of high-profile projects like Ayalaan and the ongoing work with major streaming services​.

High Competition and Margin Pressure: The VFX industry is highly competitive, and though PhantomFX has established a strong position, future profitability might face pressure as the company expands and invests heavily in technology, R&D, and infrastructure.