Creative Eye (CREATIVEYE) | News Based Sentiment Analysis

• On September 22, 2025, Creative Eye Ltd. faced a significant setback as M/s NGS & CO LLP resigned as their statutory auditors, effective immediately. The resignation, initially appointed for a five-year term starting October 1, 2022, cited commercially unviable audit remuneration despite increased professional effort, raising concerns about the complexity of the company’s financial reporting. This follows a pattern of instability within the company.
• The company’s financial performance continued to deteriorate, with a net loss of Rs -0.72 Cr reported for the quarter ending June 30, 2025 – a 17.19% increase year-on-year from Rs 0.61 crore. Revenue also experienced a complete collapse, plummeting by 100.00% year-on-year from Rs 0.16 crore to Rs 0.00 crore, indicating severe challenges in generating sales.
• A series of leadership departures continued throughout September, signaling ongoing instability. Ms. Khushbu Shah resigned as Company Secretary and Compliance Officer on September 6, 2025, citing a better career opportunity, and Independent Director Mr. Vipin Laxminarayan Thakur resigned on September 15, 2025, due to pre-occupation and other professional commitments.
• Adding to the leadership changes, the Managing Director, CFO, and Company Secretary all had resignations effective around October 6, 2025. This mass exodus of key personnel further exacerbates the uncertainty surrounding the company’s future direction and operational capabilities.
• The company’s share price reflected investor concerns, declining by -4.78% from Rs 8.02 on September 19, 2025, to Rs 7.78 by September 22, 2025, with a trading volume of 13,052. On September 26, 2025, the market capitalization was approximately ₹15 Crore.
• As of September 2025, promoters held a substantial 56.26% stake in Creative Eye, but there was no investment from Foreign Institutional Investors (FIIs) or Mutual Funds. This concentrated ownership structure limits broader market support and liquidity, making the company more vulnerable to volatility.
• Creative Eye’s financial health remains deeply concerning, with a negative Return on Equity (ROE) for three consecutive years. The company spent 61.19% of its operating revenues on employee costs and 34.62% on interest expenses in the year ending March 31, 2025, indicating high operating costs and a significant debt burden.

The Investment Story: September was a disastrous month for Creative Eye, characterized by a cascade of negative events – worsening financial results, a series of key leadership resignations, and a critical auditor resignation – all contributing to a rapidly deteriorating investment outlook.

What It Means for Investors: The continued losses, leadership vacuum, and auditor resignation paint a very bleak picture for investors. The stock’s volatility and lack of institutional investment add to the risk, making it a highly speculative investment with substantial downside potential.

Looking Ahead: Investors should closely monitor the outcome of the 39th Annual General Meeting scheduled for September 30, 2025, for any updates on leadership replacements and a potential turnaround strategy. The company’s ability to address its financial woes and restore investor confidence will be critical.

The Bottom Line: Creative Eye Ltd. remains a very high-risk investment. The recent events reinforce the need for extreme caution, and investors should carefully consider the substantial challenges facing the company before making any investment decisions.