Touchwood (TOUCHWOOD) | News Based Sentiment Analysis

• On September 6, 2025, Touchwood Entertainment announced its Q1 FY2025-26 results, reporting a significant 103.9% year-on-year increase in revenue to ₹16.9 crore. While revenue was up substantially, it did decrease by 20.4% compared to the previous quarter, and net profit also saw a quarterly decline of 8.8% to ₹1.25 crore, despite a 60.1% year-over-year increase.
• Following the Q1 results, the company projected full-year FY2025-26 revenue of ₹69.24 crore and a profit of ₹5.17 crore. This optimistic outlook suggests confidence in future performance, even with the recent quarterly dip.
• Also on September 6, 2025, Touchwood Entertainment appointed Kiswanto, a 72-year-old Birkbeck University of London postgraduate, as a new director. The company confirmed there are no related-party relationships concerning this appointment, reinforcing good corporate governance.
• The company announced its 28th Annual General Meeting (AGM) will be held on September 26, 2025, with a public notice published in newspapers on September 1, 2025. This is a standard corporate event, providing shareholders with an opportunity to engage with management.
• An analysis released on September 8, 2025, estimated Touchwood Entertainment’s intrinsic value at ₹354.12, significantly higher than its trading price of around ₹105.77. This suggests the stock is currently trading at a -70% discount to its estimated intrinsic value, potentially indicating undervaluation.
• Market capitalization figures showed a slight increase from ₹117.21 crore on September 8, 2025, to ₹118.05 crore on September 9, 2025. The Price-to-Earnings (PE) ratio was 18.77 on September 8th and 18.96 on September 7th, while the Price-to-Book (PB) ratio was 2.85 and 2.93 respectively, indicating relatively stable valuation metrics.
• Stock performance data reveals a mixed picture: while the 1-week return was up 1.55%, 3-month return was up 16.49%, and 6-month return was up 29.00%, the 1-year return showed a decline of -28.37% (as of September 9, 2025) and -32.10% (as of September 6, 2025). On September 9, 2025, the share price closed at ₹104.02, down 1.65% for the day.

The Investment Story: September was a month of mixed signals for Touchwood Entertainment, with strong year-over-year growth in Q1 offset by a quarterly decline and a significant discount to its estimated intrinsic value. The appointment of a new director and upcoming AGM represent standard corporate governance activities.

What It Means for Investors: The undervaluation highlighted by the intrinsic value analysis could present a buying opportunity, but investors should be aware of the recent quarterly performance dip and the longer-term negative 1-year return. The company's full-year projections offer a positive outlook, but monitoring quarterly results will be crucial.

Looking Ahead: Investors should closely watch the company's performance in the coming quarters to see if it can meet its full-year projections and address the recent quarterly decline. The AGM on September 26, 2025, will be an opportunity to hear directly from management and gain further insights into the company's strategy.

The Bottom Line: Touchwood Entertainment presents a potentially undervalued investment opportunity, but with some short-term performance concerns. The company's growth trajectory and future performance will be key determinants of its investment attractiveness.