Turnaround story: This micro-cap stock delivered multibagger returns in a year!

Shares of this company have given more than 30 per cent returns in the last six months.

UFO Moviez India, a company in the Indian cinema advertising business, is witnessing a turnaround after a rough patch during COVID-19. The company’s advertisement revenue has grown 83 per cent YoY, with the screen count expanding to 3,407. Key triggers for this growth include successful movie releases in the latter half of 2023 and an increase in the number of minutes of ad time sold per screen. While government ad spending remains low, UFO Moviez India is looking to corporate advertisers to fill the gap.

The company’s management is optimistic about growth due to the return of movie audiences and the limited number of alternative big-screen options for advertisers. Additionally, the company’s recent tie-up with TSR Films expands its network to southern markets and unlocks the potential for higher ad sales per screen. While reaching pre-pandemic ad revenue levels from Central Government spending might be difficult, UFO Moviez India is confident in its ability to make up for the shortfall by selling more ad space and increasing advertising rates.

In Q3FY24, UFO Moviez India posted a 6.81 per cent increase in its consolidated revenue at Rs 118.12 crore compared to Rs 110.59 crore from the previous year’s corresponding quarter. The operating profit of the company stood at Rs 19.68 crore, while the PAT of the company stood at Rs 4.21 crore, from a loss of Rs 2.51 crore last year's same quarter. The stock has also delivered multibagger returns of over 120 per cent in the last one year.

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