Company Note

Company Note
Basilic Fly https://twitter.com/ChintanParikh10

Disc: I am holding since Sep 12 2023 with avg price of 285.5
13 January 2024
For Education, Discussion & Awareness only- No Recommendations-Do Your own Due Diligence and Consult your
Advisor before Investing
dd-mm-yyyy
© Atos - Confidential
https://twitter.com/ChintanParikh10 Chintan Parikh
My Introduction
• My name is Chintan Parikh
• Currently in Munich, Germany
• Working as BDM for Digital business with a French IT

company
• Learning Areas: Techno Funda investing, Momentum trading
• Best way to connect: Twitter
3 | 13-1-2024 https://twitter.com/ChintanParikh10
Disclaimer
• I am not a SEBI registered. I am an individual retail investor and not affiliated with any company related
directly to IPO company discussed in this presentation or any financial or regulatory institution
• The presentation, slides and discussion are only for knowledge sharing and educational purposes only.
• No investment advice or research recommendation (Buy/ Sell/ Hold) is given in this session and I don’t
have any any inside information
• Every participant/ reader must do their own due diligence and research
• Documents/ Guidelines of Regulators/ Exchanges/ Listing arrangements/ rules/regulations as may be

applicable as per prevalent law in participant/ reader’s country
• All are requested to consult their own Stock brokers/ Investment Advisors/ Financial Advisor/ Tax
Consultants/ Banker and people/ organization from such other professional community, in their own country
before investing or buying/ selling/ holding in any investment class/ financial instruments.
• The Speaker (I) / Participants are expressing their own views and not the views of the Institute or the
organization / Knowledge / Study Circle /Group/Committees/ Chapters they represent. I am not
responsible for any investment decisions made based on the discussion or presentations for Educational
Knowledge / Experience Sharing during the session.
Understanding the sector
▶ Origin:
▶ 1st ever special effects were in 1895 in The
Execution of Mary Stuart (1895)
▶ For Indian film industry, ‘Khwaab ki Duniya’ (1937)
was the 1st movie where Mr. Babubhai Mistry
introduced special effects
▶ Market Size:
▶ VFX global market revenue to grow from $26.3
billion in 2021 to $48.9 billion in 2028 at a CAGR of
10.9%
▶ In 2023, the Indian VFX sector grew by 120 per
cent to reach Rs 42.6 billion, while post-production
grew by 54 per cent to reach Rs 18.2 billion
▶ Indian animation and visual effects industry has the
potential to grab 20 to 25% of the worldwide AVGC
market ,it is estimated to generate 75,000-120,000
jobs (ref. BCG & CII)
▶ There was ~150 days strike in Hollywood which
affected the order flow in 2023 for all VFX
companies
In a nutshell – Basilic Fly Studio Ltd.
visual effects (VFX) studio delivers VFX services to movies, TV & net series, and commercials
▶ Started in 2012-2013 as partnership

▶ HQ in Chennai, with subsidiaries operating at
Canada (Nov 21) & UK (Q3 2022)
▶ the company wishes to have its physical presence
in Eastern Europe and South Korea in future times
to come
▶ Team of 500 highly trained technical & Mgmt.
professionals ( EPF – 455 by Dec23 )
▶ TPN certified VFX provide. TPN (Trusted Partner
Network), owned and managed by the Motion
Picture Association (MPA) in USA, is a global,
industry-wide film and television content protection
initiative.
▶ Promoters
– Mr. Balakrishnan
– Mrs. Yogalakshmi S
5 | 13-1-2024 Image reference – company website

https://twitter.com/ChintanParikh10
Customer information & Type of Work
• More than 300 clients

• Top 5 customers contributed 41% in 2023
• Subcontracting Revenue - 90% in FY23
• Completed around more than 900 Movie
projects and 2,000 Series projects and 8,000
commercials
6 | 13-1-2024 Image reference – company website / RHP

Company Financials
• Increase in Trade Receivables - doubled from 15 cr to 31 cr. Some are

not due
• 10% of the total which is more than six months outstanding and we
have around like 61 debtors and out of that only just four
• holding less than 10% are more than six month debtors.
7 | 13-1-2024 Image reference – Screener.in

IPO Proceeds
8 | 13-1-2024 Image reference – company website / RHP

Comparison with Peers
Parameter (FY Mar 23) Basilic Fly Phantom Digikore Prime Focus • Basilic is ahead of competition on several
Market Cap (Rs. Cr.) 1,043 629 282 3,503
parameters
P/E 37.6 33.9 64.6

P/B 9.60 9.88 7.09
Debt to equity 0.03 0.33 0.27 9.21

OPM 49% 37.9 % 18.5 % 16.2 %
Sales growth 213 % 159 % 38.4 % 17.9 %
Promoter holding 59.9 % 54.8 % 66.6 % 70.0 %
Market Cap to Sales 13.2 8.63 8.20 0.73
EVEBITDA 25.2 22.8 35.3 7.50

Free Cash Flow (Rs. Cr.) 6.01 -20.8 -1.87 -103
RoE 156 % 65.4 % 117 % 252 %
RoCE 172 % 75.1 % 75.7 % 15.5 %
RoA 81.0 % 41.4 % 31.9 % 3.75 %
Intrinsic Value (Rs.) 873 525
9 | 13-1-2024 Source reference – Screener.in

What is Ahead
• Excerpt of Concall Nov 23

• Aiming for 60-70% growth in top line and 30% PAT margin for FY2024
• Operating margins expected to stay above 45% going forward
• Expect to double team strength to 800-1000 members in the next year
• Strong relationships with major production networks like Marvel, Warner, Apple, and Paramount Plus
• Canadian subsidiary achieved break-even numbers
• Incorporating AI tools to reduce roto work and focusing on software development for automation
• Global release of 50+ VFX-heavy movies expected in 2023 and early 2024.
• Over 1,000 original titles to be commissioned by top 10 OTT platforms in the coming years.
• Prasar Bharati considering launching a children's TV channel, driving demand for domestic animated content
• Key Shareholders
• Aparna Samir Thakkar - 4.86%
• Umesh Chamdia - 4.86%
• Ashish Kacholia - 2.35%
• Increase in # of shareholders from 1785 in Sep 23 to 2503 by Dec 23
10 | 13-1-2024 Source reference – Screener.in

Thanks https://twitter.com/ChintanParikh10
dd-mm-yyyy
© Atos - Confidential
https://twitter.com/ChintanParikh10 Chintan Parikh

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Basilic Fly https://twitter.com/ChintanParikh10

• My name is Chintan Parikh

• Currently in Munich, Germany

• Working as BDM for Digital business with a French IT

• Learning Areas: Techno Funda investing, Momentum trading

• Best way to connect: Twitter

• Documents/ Guidelines of Regulators/ Exchanges/ Listing arrangements/ rules/regulations as may be

▶ Started in 2012-2013 as partnership

5 | 13-1-2024 Image reference – company website

• More than 300 clients

6 | 13-1-2024 Image reference – company website / RHP

• Increase in Trade Receivables - doubled from 15 cr to 31 cr. Some are

7 | 13-1-2024 Image reference – Screener.in

8 | 13-1-2024 Image reference – company website / RHP

P/E 37.6 33.9 64.6

Debt to equity 0.03 0.33 0.27 9.21

Sales growth 213 % 159 % 38.4 % 17.9 %

Promoter holding 59.9 % 54.8 % 66.6 % 70.0 %

Market Cap to Sales 13.2 8.63 8.20 0.73

EVEBITDA 25.2 22.8 35.3 7.50

RoE 156 % 65.4 % 117 % 252 %

RoCE 172 % 75.1 % 75.7 % 15.5 %

RoA 81.0 % 41.4 % 31.9 % 3.75 %

Intrinsic Value (Rs.) 873 525

9 | 13-1-2024 Source reference – Screener.in

• Excerpt of Concall Nov 23

• Increase in # of shareholders from 1785 in Sep 23 to 2503 by Dec 23

10 | 13-1-2024 Source reference – Screener.in

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