Low PE & high ROE penny stock at Rs 34: This content creation company signs a web series project with global OTT platform

The shares of the company have a PE of 10x whereas the industry PE is 46x with an ROE of 38 per cent and an ROCE of 38 per cent.

Inspire Films Limited has secured a major contract with a global OTT platform (Amazon) to produce a 20-episode romantic drama web series based on a bestselling novel by a renowned author. Currently in development, the project is slated to begin filming in the first quarter of the upcoming fiscal year (2024-25). This exciting adaptation holds significant potential, aligning perfectly with our company's strategic goals. By transforming a beloved novel into a web series, we aim to captivate a broad audience and solidify Inspire Films Limited's position within the ever-evolving digital entertainment landscape.

Inspire Films Ltd, founded in 2012, is a full-service entertainment company that creates, produces, distributes, and exhibits television and digital content. They cater to both traditional television by developing shows for major Hindi channels like Star Plus and Colors TV, and the booming digital streaming market by producing content for Netflix, Amazon Prime, and Hotstar.

Their contracts typically involve year-long commitments for traditional channels with episode lengths ranging from 30 to 60 minutes, while digital platforms involve shorter series of 8-10 episodes (45-60 minutes) or 25-60 episodes (22-25 minutes) with the possibility of multiple seasons based on success. Inspire Films has also expanded into regional language content for Telugu, Tamil, Malayalam, Bengali, and Marathi audiences. With over 10,000 episodes produced, including 35 original series, they're a major player in shaping Indian entertainment across all platforms.

Today, shares of Inspire Films Limited surged 1.19 per cent to Rs 29.75 per share with an intraday high of Rs 33.80 and an intraday low of Rs 23.55. The stock’s 52-week high is Rs 72.10 and its 52-week low is Rs 29.10.

The company has a market cap of Rs 40.5 crore. The shares of the company have a PE of 10x whereas the industry PE is 46x with an ROE of 38 per cent and an ROCE of 38 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.