Film Production, Distribution & Entertainment · Founded 2007 · www.dqentertainment.com · BSE 533176 · NSE DQ ENT · ISIN INE656K01010
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Business
DQ Entertainment (International) Ltd. is a global animation, gaming, and entertainment production and distribution company based in India. Its core business involves the creation, co-production, distribution, and licensing of animated intellectual properties (IPs) for television, film, digital platforms, and merchandise. The company primarily focuses on content for children and family audiences. It makes money through co-production agreements, sales of distribution rights to broadcasters and streaming platforms worldwide, and licensing fees from merchandising, publishing, and gaming based on its owned or co-owned IPs.
Revenue Mix
While specific revenue contribution percentages are not publicly detailed in the prompt, DQ Entertainment's business activities typically fall into these key segments:
Co-production & Production Services: Revenue generated from co-producing animated series and films with international partners, as well as providing work-for-hire animation services.
IP Licensing & Distribution: Revenue derived from selling distribution rights of its owned/co-owned content to global broadcasters and streaming services, along with licensing fees for merchandising, digital content, and gaming based on its IPs (e.g., "The Jungle Book," "Peter Pan").
Industry
DQ Entertainment operates in the global film production, distribution, and entertainment industry, with a specific focus on animated content. This industry is characterized by high demand for quality content, especially for children, driven by traditional broadcasters and the rapid expansion of Over-The-Top (OTT) streaming platforms. The company is positioned as an established international player from India, known for its extensive co-production network with major global studios and broadcasters like Disney, BBC, Nickelodeon, and DreamWorks. While not a top-tier global studio, it is a significant and internationally recognized animation production house from India, leveraging a cost-effective production base with global quality standards.
MOAT
DQ Entertainment's competitive advantages include:
Established IP Portfolio: Ownership or co-ownership of globally recognized animation IPs such as "The Jungle Book," "Peter Pan," and "The Little Prince" provides recurring revenue streams and brand recognition.
Global Co-production Network: Long-standing relationships and a track record of successful co-productions with major international broadcasters and studios facilitate access to funding, distribution, and global reach.
Scalable Production Capacity: As one of India's larger animation studios, it possesses significant production capacity and talent, potentially offering cost advantages in high-volume animation production.
Growth Drivers
Key factors that can drive growth for DQ Entertainment over the next 3-5 years include:
Surge in Streaming Content Demand: The continuous global growth of OTT platforms and their increasing need for original and licensed animated content.
IP Expansion and Monetization: Developing new seasons, spin-offs, and expanding merchandising/licensing opportunities for existing popular IPs.
New IP Development: Successful creation and launch of new intellectual properties that resonate with global audiences.
Diversification into New Platforms: Exploring opportunities in gaming, interactive content, and emerging digital platforms.
Leveraging India's Talent Pool: Continued ability to provide high-quality animation at competitive costs, attracting international partners.
Risks
Content Demand Volatility: Reliance on content commissions and acquisitions from broadcasters and streaming services, which can be cyclical.
High Production Costs & IP Risk: Animation production requires significant upfront investment, and the success of new IPs is not guaranteed.
Intense Competition: Facing competition from numerous global and local animation studios, as well as in-house production capabilities of large media conglomerates.
IP Infringement & Piracy: Risks associated with protecting its intellectual property rights globally.
Technological Shifts: The need to continuously adapt to evolving animation technologies, distribution methods, and consumer consumption patterns.
Foreign Exchange Fluctuations: A significant portion of its revenue is likely in foreign currencies, exposing it to currency exchange rate risks.
Management & Ownership
DQ Entertainment (International) Ltd. is a publicly listed company in India (DQE). It is typically led by its promoters, who often hold a significant stake, guiding the company's strategic direction in the animation and entertainment sector. Specific details on individual management quality beyond their roles are not provided in the prompt.
Outlook
DQ Entertainment is positioned in a growing global animation industry, benefiting from the increasing demand for content across various platforms. Its established IP portfolio and strong international co-production relationships provide a stable foundation and avenues for future growth. However, the company operates in a highly competitive and capital-intensive sector where the success of content is inherently uncertain. Future performance will largely depend on its ability to consistently produce engaging content, effectively monetize its intellectual properties across multiple formats, manage production costs efficiently, and adapt to rapidly evolving market dynamics and technological advancements.
Price goes above X
Price falls below X
PE goes above X
PE falls below X
| #(Fig in Cr.) | Mar 2018 | Jun 2018 | Sep 2018 | Dec 2018 | Mar 2019 | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 26 | 23 | 23 | 24 | 28 | 18 | 13 | 6 | 5 | 1 |
| Other Income | 6 | 34 | 1 | 1 | 19 | 1 | 8 | 3 | 0 | 1 |
| Total Income | 31 | 56 | 25 | 25 | 47 | 19 | 21 | 9 | 5 | 1 |
| Total Expenditure | 2 | 16 | 16 | 19 | 16 | 24 | 22 | 17 | 13 | 11 |
| Operating Profit | 29 | 40 | 8 | 5 | 31 | -5 | -1 | -9 | -8 | -10 |
| Interest | 13 | 11 | 12 | 11 | 13 | 12 | 12 | 8 | 9 | 9 |
| Depreciation | 34 | 11 | 11 | 13 | 39 | 13 | 17 | 3 | 5 | 3 |
| Exceptional Income / Expenses | 18 | -28 | 8 | 3 | -13 | 5 | -22 | 2 | 6 | 1 |
| Profit Before Tax | 0 | -10 | -7 | -15 | -34 | -25 | -53 | -18 | -16 | -21 |
| Provision for Tax | -22 | -2 | -4 | 2 | 0 | -0 | -2 | -1 | -3 | -1 |
| Profit After Tax | 23 | -8 | -3 | -18 | -34 | -25 | -51 | -17 | -12 | -20 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 23 | -8 | -3 | -18 | -34 | -25 | -51 | -17 | -12 | -20 |
| Adjusted Earnings Per Share | 2.9 | -1 | -0.4 | -2.2 | -4.3 | -3.2 | -6.4 | -2.1 | -1.6 | -2.6 |
| #(Fig in Cr.) | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 208 | 227 | 229 | 240 | 195 | 210 | 94 | 80 | 98 | 25 |
| Other Income | 10 | 9 | 3 | 25 | 1 | 53 | 9 | 89 | 55 | 12 |
| Total Income | 218 | 236 | 233 | 265 | 196 | 264 | 103 | 169 | 153 | 36 |
| Total Expenditure | 135 | 133 | 118 | 139 | 123 | 121 | 170 | 52 | 98 | 63 |
| Operating Profit | 82 | 103 | 115 | 125 | 73 | 142 | -67 | 117 | 55 | -28 |
| Interest | 13 | 19 | 21 | 25 | 43 | 59 | 69 | 89 | 47 | 38 |
| Depreciation | 34 | 42 | 53 | 55 | 43 | 45 | 82 | 65 | 75 | 28 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -13 |
| Profit Before Tax | 35 | 43 | 41 | 45 | -13 | 38 | -219 | -37 | -67 | -108 |
| Provision for Tax | 7 | 10 | 4 | 2 | 7 | 8 | -1 | -22 | -3 | -7 |
| Profit After Tax | 28 | 33 | 37 | 43 | -20 | 30 | -218 | -15 | -63 | -100 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 28 | 33 | 37 | 43 | -20 | 30 | -218 | -15 | -63 | -100 |
| Adjusted Earnings Per Share | 3.5 | 4.2 | 4.7 | 5.4 | -2.5 | 3.8 | -27.5 | -1.9 | -8 | -12.7 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 23% | -22% | -16% | 0% |
| Operating Profit CAGR | -53% | -27% | -15% | 0% |
| PAT CAGR | 0% | NAN% | NAN% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 0% | -7% | 4% | -27% |
| ROE Average | -59% | -47% | -28% | -11% |
| ROCE Average | -3% | -5% | 0% | 5% |
| #(Fig in Cr.) | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 355 | 395 | 432 | 504 | 447 | 510 | 123 | 107 | 109 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 86 | 84 | 110 | 139 | 278 | 263 | 393 | 517 | 372 |
| Other Non-Current Liabilities | 25 | 40 | 48 | 55 | 38 | 7 | -71 | -76 | -80 |
| Total Current Liabilities | 135 | 200 | 165 | 242 | 264 | 350 | 266 | 220 | 290 |
| Total Liabilities | 600 | 719 | 755 | 940 | 1028 | 1130 | 710 | 768 | 691 |
| Fixed Assets | 177 | 181 | 182 | 148 | 168 | 228 | 243 | 246 | 341 |
| Other Non-Current Assets | 200 | 272 | 339 | 480 | 387 | 499 | 377 | 434 | 292 |
| Total Current Assets | 224 | 266 | 233 | 312 | 473 | 404 | 91 | 87 | 58 |
| Total Assets | 600 | 719 | 755 | 940 | 1028 | 1130 | 710 | 768 | 691 |
| #(Fig in Cr.) | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 58 | 52 | 69 | 2 | 1 | 75 | 12 | 19 | 0 |
| Cash Flow from Operating Activities | 35 | 55 | 51 | 64 | 37 | 113 | 40 | 38 | 0 |
| Cash Flow from Investing Activities | -128 | -53 | -117 | -81 | -120 | -120 | -61 | -79 | 0 |
| Cash Flow from Financing Activities | 87 | 15 | 0 | 15 | 152 | -46 | 29 | 33 | 0 |
| Net Cash Inflow / Outflow | -6 | 16 | -66 | -2 | 69 | -53 | 8 | -8 | 0 |
| Closing Cash & Cash Equivalent | 52 | 69 | 2 | 1 | 75 | 20 | 19 | 12 | 0 |
| # | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 3.51 | 4.17 | 4.71 | 5.39 | -2.49 | 3.78 | -27.5 | -1.87 | -8 |
| CEPS(Rs) | 7.85 | 9.43 | 11.35 | 12.36 | 2.97 | 9.48 | -17.13 | 6.29 | 1.41 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 44.74 | 49.76 | 54.5 | 63.59 | 56.43 | 64.26 | 15.46 | 13.49 | 13.77 |
| Core EBITDA Margin(%) | 34.96 | 41.54 | 48.6 | 41.87 | 36.74 | 42.36 | -80.2 | 34.52 | 0.07 |
| EBIT Margin(%) | 23.1 | 27.17 | 27.12 | 29.19 | 15.2 | 46.21 | -158.19 | 65.12 | -20.13 |
| Pre Tax Margin(%) | 16.96 | 18.92 | 17.99 | 18.69 | -6.73 | 18.13 | -231.65 | -45.98 | -68.28 |
| PAT Margin (%) | 13.4 | 14.53 | 16.26 | 17.84 | -10.12 | 14.23 | -230.89 | -18.51 | -64.88 |
| Cash Profit Margin (%) | 29.94 | 32.9 | 39.23 | 40.9 | 12.07 | 35.73 | -143.86 | 62.2 | 11.43 |
| ROA(%) | 5.39 | 5.01 | 5.06 | 5.05 | -2 | 2.77 | -23.69 | -2.01 | -8.7 |
| ROE(%) | 8.2 | 8.82 | 9.03 | 9.14 | -4.14 | 6.26 | -68.98 | -12.93 | -58.7 |
| ROCE(%) | 10.71 | 11.17 | 10.04 | 9.87 | 3.59 | 10.53 | -18.43 | 7.58 | -2.82 |
| Receivable days | 150.59 | 164.86 | 222.18 | 321.5 | 563.78 | 571.52 | 676.83 | 145.86 | 94.47 |
| Inventory Days | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Payable days | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| PER(x) | 16.01 | 5.68 | 2.26 | 5.13 | 0 | 5.38 | 0 | 0 | 0 |
| Price/Book(x) | 1.26 | 0.48 | 0.2 | 0.43 | 0.43 | 0.32 | 1.49 | 0.85 | 0.45 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 2.66 | 1.39 | 1.3 | 2.02 | 2.83 | 2.83 | 7.38 | 8.64 | 6.23 |
| EV/Core EBITDA(x) | 6.7 | 3.05 | 2.59 | 3.87 | 7.57 | 4.18 | -10.38 | 5.92 | 11.1 |
| Net Sales Growth(%) | 18.45 | 9.31 | 0.97 | 4.48 | -18.73 | 8.01 | -55.12 | -15.12 | 21.96 |
| EBIT Growth(%) | 46.66 | 28.55 | 0.78 | 12.46 | -57.67 | 228.28 | -253.62 | 134.95 | -137.69 |
| PAT Growth(%) | 4.45 | 18.54 | 12.97 | 14.65 | -146.09 | 251.86 | -828.25 | 93.19 | -327.4 |
| EPS Growth(%) | 4.44 | 18.54 | 12.97 | 14.65 | -146.09 | 251.86 | -828.25 | 93.19 | -327.39 |
| Debt/Equity(x) | 0.45 | 0.5 | 0.5 | 0.53 | 0.97 | 0.89 | 4.36 | 5.73 | 5.17 |
| Current Ratio(x) | 1.66 | 1.33 | 1.41 | 1.29 | 1.79 | 1.15 | 0.34 | 0.4 | 0.2 |
| Quick Ratio(x) | 1.66 | 1.33 | 1.41 | 1.29 | 1.79 | 1.15 | 0.34 | 0.4 | 0.2 |
| Interest Cover(x) | 3.76 | 3.29 | 2.97 | 2.78 | 0.69 | 1.65 | -2.15 | 0.59 | -0.42 |
| Total Debt/Mcap(x) | 0.36 | 1.05 | 2.55 | 1.21 | 2.26 | 2.83 | 2.92 | 6.74 | 11.58 |
| # | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2022 | Mar 2023 | Jun 2023 | Sep 2023 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 75 | 75 | 75 | 75 | 75 | 75 | 74.76 | 75 | 75 | 75 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 25 | 25 | 25 | 25 | 25 | 25 | 25.24 | 25 | 25 | 25 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2022 | Mar 2023 | Jun 2023 | Sep 2023 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 5.95 | 5.95 | 5.95 | 5.95 | 5.95 | 5.95 | 5.95 | 5.95 | 5.95 | 5.95 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 1.98 | 1.98 | 1.98 | 1.98 | 1.98 | 1.98 | 2.01 | 1.98 | 1.98 | 1.98 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 | 7.95 | 7.93 | 7.93 | 7.93 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | +23% | -22% | -16% | — |
| Operating Profit CAGR | -53% | -27% | -15% | — |
| PAT CAGR | — | 0% | 0% | — |
| Share Price CAGR | 0% | -7% | +4% | -27% |
| ROE Average | -59% | -47% | -28% | -11% |
| ROCE Average | -3% | -5% | 0% | +5% |
| # | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2022 | Mar 2023 | Jun 2023 | Sep 2023 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 75 | 75 | 75 | 75 | 75 | 75 | 74.76 | 75 | 75 | 75 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 25 | 25 | 25 | 25 | 25 | 25 | 25.24 | 25 | 25 | 25 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2022 | Mar 2023 | Jun 2023 | Sep 2023 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 5.95 | 5.95 | 5.95 | 5.95 | 5.95 | 5.95 | 5.95 | 5.95 | 5.95 | 5.95 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 1.98 | 1.98 | 1.98 | 1.98 | 1.98 | 1.98 | 2.01 | 1.98 | 1.98 | 1.98 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 | 7.95 | 7.93 | 7.93 | 7.93 |
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