detailed review of basilic.
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Basilic Fly Studio Ltd has worked on renowned films such as Avengers Endgame, Avatar 2, Spiderman Far from Home, Extraction 2, shang-chi ✅ etc. Additionally, their expertise extends to hit series like Stranger Things 4, The Crown, The Witcher, etc. Also, The Company has been audited by multiple studios like Netflix, Disney, FOX Studios, SONY,🔥 etc.
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▪️Incorporated in 2016, Basilic Fly Studio Ltd. (BFSL) is a Chennai headquartered visual effects (VFX) studio in India with subsidiaries operating in Canada and the UK which specialize in creating visual experiences that captivate audiences around the world. BFSL has emerged as a top visual effects (VFX) studio in India transforming imaginations into visuals.
▪️Basilic Fly Studio provides VFX solutions for movies, TV, net series, and commercials. BFSL's service list includes:-
1)Final Compositing and Rotoscopy.
2)Camera/ Body Tracking and Rotomation/ Object Tracking.
3)Paint And Preparation.
4)Previs or Previsualization.
5)Computer Graphics.
6)Onset Supervision.
▪️The company holds proficiency in the VFX industry and has delivered high-quality VFX solutions for movies, TV, net series, and commercials. BFSL has established a strong presence in the industry by forging direct partnerships with diverse production houses, as well as collaborating with prominent VFX companies and studios through sub-contracting arrangements✅. Many VFX companies and studios choose to outsource certain aspects to specialized teams that are equipped with expertise, infrastructure, and technology to manage large-scale VFX projects. It has generated major revenue from VFX companies and Studios. Average over 88% of annual revenue comes from sub-contract services.
▪️Over ten years, BFSL has consistently pushed the boundaries of creativity and technology. The Company boasts a team of skilled artists and a commitment to the latest technological advancements🔥, setting them apart in the industry.
▪️With an impressive track record of serving over 300 clients and delivering a staggering 10,000+ projects, BFSL's proficiency is evident. Their extensive credentials include contributions to 900+ films✅, involvement in 2,000+ series✅, and the production of 8,000+ commercials✅. Their portfolio showcases their vast expertise in the industry.
▪️The company has over 500 skilled individuals and has offices in Pune, London, and Vancouver💫.
▪️BFSL has mastered in VFX studios and has a global presence with a niche place🔥.
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▪️IPO price: Rs.97
▪️IPO size: 66.35 CR
▪️Market cap: Rs.660CR
▪️CMP:Rs.284
▪️P/E: 24
▪️ROE:155.63%
▪️EPS: 12( post ipo)
▪️ROCE:104.73%
▪️Debt/Equity:0.14
▪️RoNW:87.59%
📌FINANCIALS:
▪️FY23 revenue is 78.95 CR as compared to 25.28 CR(FY22), 212%✅ growth yoy.
(Revenue breakup:-North America-35%, Europe-44%, Australia and New Zealand-16% ,Rest of the world-5%)
▪️FY23 PAT is 27.74 CR as compared to 0.9 CR(FY22), 2980%✅ growth yoy.
▪️355%🔥 growth in Revenue in last 2 years.
▪️8140%🔥 growth in PAT in last 2 years.
▪️CLOSING CASH AND CASH EQUIVALENT: 10.17Cr
(It has posted spectacular performance for FY23, reaping the benefits of timely expansion. The company is expanding further to enhance its global reach and is poised for bright prospects ahead.✅)
📌Awards:
Basilic Fly Studio has been awarded:-
➢Company of the year (Creative Media Solution 2022) at India Icons Awards.🔥
➢most prominent Company 2023 (Animation Category) at Nation Wide Awards. 🔥
➢Excellence in VFX and Post Production at the Times Business Awards 2023. 🔥
📌IPO funds:
The company intends to utilize the net proceeds from the issue towards the funding of the following objects:
1)Expenditure for setup of Studio/Facility at Hyderabad and Salem.(Rs. 21.36 cr)✅
2)Expenditure for adding infrastructure to further strengthen the existing facilities/offices of the company located in Chennai and Pune.(Rs. 19.61 cr.)✅
3)Making investments through equity in the subsidiaries for expansion of workspace by acquiring new office space located in London and strengthening the existing facilities/offices located in Vancouver.(Rs. 4.65 cr.)✅
4)General Corporate Purposes and Issue Expenses.
📌PEERS:
As per the offer document, BFSL has shown Phantom Digital as its listed peer. It is currently trading at a P/E of 34.20 (as of August 29, 2023). However, they are not truly comparable on an apple-to-apple basis.
📌SECTOR GROWTH:
▪️The global animation and visual effects market size was estimated at USD 168 billion in 2021 and is projected to grow to USD 290 Bn by 2024 at a CAGR of 10.94% between 2020 and 2026.✅
▪️Visual effects (VFX) are a crucial part of today’s media and entertainment industry. About 90 percent of films, videos, and series use visual effects.💫
▪️The global visual effects (VFX) market attained a value of USD 9.95 billion in 2022. The market is further expected to grow in the forecast period of 2023-2028 at a CAGR of 10.4% to reach almost USD 18.02 billion by 2028. The global market is being led by North America, majorly being driven by the increasing use of VFX in Hollywood movies. ✅
▪️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. Jointly the animation, VFX and post-production sector is expected to reach Rs.180 billion by 2024.✅
▪️Indian film makers are significantly increasing their spending on VFX in the domestic market. High-budget films like Brahmastra and RRR allocated 25% to 30% of their total production budget to VFX works 🔥.
📌STRENGTH:
➢Well equipped with advance technology.✅
➢Experienced Promoters and Technically Sound Operation Team.
➢They have established a strong presence in the industry by forging direct partnerships with diverse production houses, as well as collaborating with prominent VFX companies and studios through sub-contracting arrangements.
➢Strict quality control in production process.
📌Weakness:
▪️High cost of capital, basic inputs, and manpower cost.✅
▪️Upgradation of knowledge on new technologies deployed and services provided by the Company.
▪️Dependency on KMPs.
📌FUTURE PLAN:
▪️Focusing on Increasing Process Services & consistency in operating practices.
▪️Expanding their Network and Enhance customer base by entering new geographies. ✅
▪️Growing their business with existing clients with quality and efficient services.
▪️The company plans to open 2 more dedicated facilities in India.✅
▪️Company wishes to have its physical presence in Eastern Europe and South Korea in future times to come.✅
📌Disclosure: Not a buy recommendation. only for study and education purpose. Please consult your financial advisor before investing.