Basilic Fly Studio Limited (BASILIC) Multibagger Analysis

Basilic Fly Studio Limited (BASILIC) — Multibagger Analysis

AI research on 1 Expansion / Order-win announcement by Basilic Fly Studio Limited since August 2026 — deal magnitude, revenue and EPS impact, execution risk, and the actual return since each announcement measured from the next trading day's open and benchmarked against the Nifty Smallcap 250.

Updates

03 August 2026 · Expansion · Strong Candidate · Entertainment / Electronic Media Software · score 76/100

Deal

Deal value₹105 Cr

Deal vs businessorder = 0.31x TTM revenue (Rs 105 Cr order vs Rs 342 Cr TTM revenue)

Size vs own revenue0.31×

Execution period0.75 yr

Fundamental gradeB

AI projections

Revenue uplift (yr1 / steady)30.7% / 35.0%

EPS uplift30.6%

Upside base / bull / bear65.0% / 120.0% / -25.0%

Horizon12-24 months

Realized market record

Entry — next-day open (04 Aug 2026)₹202.9

Latest close (15 Oct 2026)₹199.15

Return since-1.8%

α vs Smallcap 250+0.7%

α vs own sectorshown once held 90+ days — Entertainment / Electronic Media Software median is -9.6% over 8 matured picks

Positives

Major international order win of Rs 105 Cr (~30.7% of TTM revenue) for FY27 from major clients including Netflix, Disney, and Apple.
Record bidding pipeline of Rs 700 Cr (~2x TTM revenue) with >40% in advanced evaluation stages, providing multi-year growth visibility.
Highly attractive valuation at 9.8x trailing P/E vs peer median of 14.2x, following a 52.9% 12-month stock price correction.
Strong balance sheet with ROCE of 21.0%, D/E of 0.31, and Rs 85 Cr QIP capital earmarked for North American M&A growth.
Margin enhancement drivers including UK 40% VFX tax relief and Bengaluru low-cost artist expansion.

Risks

Slower recovery of aged foreign studio receivables (only 16% recovered from March 2025 balance).
Overseas studio pricing pressure squeezing international project margins by an estimated 5-10%.
Dependency on top streaming platforms (Netflix, Amazon, Apple) for consistent order inflow.

Full AI brief

1. Ramp-Aware Impact Math

TTM Base: Revenue ₹342.36 Cr, Net Profit ₹52.58 Cr (NPM 15.36%), EPS ₹20.30.
New Order Size: ₹105 Cr (~GBP 8.2 Mn) scheduled for completion within FY27 (~0.75 years remaining execution window).
Year-1 Revenue Uplift: ₹105 Cr / ₹342.36 Cr = +30.7% immediate top-line addition.
Earnings Impact: Assuming stable steady-state NPM of 15.36%, the ₹105 Cr order generates ~₹16.13 Cr in incremental PAT.
Revised FY27 Profit Profile: Estimated baseline PAT rises from ₹52.58 Cr to ~₹68.71 Cr, translating to a forward EPS of ~₹26.52 (+30.6% uplift).
Valuation Context: At the current market price of ₹199.4 (Market Cap ₹517 Cr), the stock trades at 9.8x trailing P/E and ~7.5x forward P/E based solely on this order execution.

2. Industry Context & Capital Intensity

Capital Intensity: LOW. VFX operations rely on creative talent, digital infrastructure, software licensing, and cloud rendering ('Project Hybrid').
Execution Difficulty: MEDIUM. Project delivery requires high-skilled artists (423 in India, 271 in London) and tight coordination with studio release schedules.
Industry Tailwinds: Global media/VFX market growing at ~9.1% CAGR, significantly catalyzed by the enhanced 40% UK tax relief taking effect in 2025.

3. Fundamental Quality & SEPA Grade

SEPA Grade: B. FY26 net profit grew 38.4% YoY to ₹52.58 Cr (EPS ₹20.30 vs ₹13.45 in FY25).
Financial Health: ROCE stands at a healthy 21.0%, D/E ratio is modest at 0.31 (Debt ₹78 Cr vs Net Worth ₹252 Cr), and promoter holding is stable at 55.32%.
Catalyst Cash Reserves: Rs 85 Cr QIP funds raised specifically for inorganic expansion into North America, offering secondary growth vectors.

4. Valuation Scenarios (12-24 Months)

Base Case (+65% Upside to ~₹329): Rs 105 Cr order executes on schedule in FY27; bidding pipeline converts at normal 20-25% rates; P/E re-rates modestly to 12.5x on EPS of ₹26.3.
Bull Case (+120% Upside to ~₹438): Rapid pipeline conversion (>30% of Rs 700 Cr bidding pipeline), successful earnings-accretive North American M&A via QIP funds, and P/E re-rating to peer median of 16.5x on EPS of ₹26.5+.
Bear Case (-25% Downside to ~₹149): Delayed realization of international receivables, overseas margin squeeze (NPM drops to 11%), and valuation de-rates to 7.5x P/E.

5. Verdict Rationale

Basilic Fly Studio presents a highly compelling risk-reward setup. The company has secured an order equal to 30.7% of its TTM revenue, backed by a massive Rs 700 Cr record bidding pipeline. Despite solid annual growth (FY26 EPS up 51% YoY) and high capital efficiency (ROCE 21%), the stock has fallen 52.9% over the past 12 months, driving trailing P/E down to 9.8x. This combination of strong execution visibility, cheap valuation, and low balance sheet risk makes it a STRONG MULTIBAGGER CANDIDATE.

Analysis as of 2026-08-03 (price ₹199.45) · AI research, not investment advice.

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Verdicts and projections on this page are produced by an AI model from Basilic Fly Studio Limited's public exchange filings and are not investment advice. "Return since" is measured from the opening price of the next trading day after each announcement to the latest available close, so it reflects a price an investor could actually have paid. See all analysed companies on Multibagger AI.