Touchwood Entertainment Ltd. (TOUCHWOOD) AI Stock Analysis

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Touchwood Entertainment Ltd.

(NSE:TOUCHWOOD)

Select Model

Rating:52Neutral

Price Target:INR 54.00▲(1.29% Upside)

Action:reiterated

Date:08/29/26

The score is held back primarily by weak cash conversion and deteriorating FY2026 operating performance (revenue decline and margin compression), despite a conservatively levered balance sheet. Technicals also weigh on the score due to a clear downtrend across major moving averages and negative MACD, while valuation is only moderately supportive with a ~21 P/E.

Positive Factors

Conservative leverageVery low leverage gives Touchwood financial flexibility and reduces the burden of interest obligations. A growing equity and asset base provides a stronger platform for absorbing operating volatility, funding activities, and supporting future expansion without relying heavily on debt.

Negative Factors

Weak cash conversionPersistent negative operating cash flow and deeply negative free cash flow mean reported profits are not currently translating into liquidity. If this continues, Touchwood may face greater funding pressure, reduced reinvestment capacity, and less flexibility to withstand weaker event demand or margin pressure.

Touchwood Entertainment Ltd. (TOUCHWOOD) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 590.74M
Dividend Yield: ―
Average Volume (3M): 2,146
Price to Earnings (P/E): 18.5
Beta (1Y): 1.16
Revenue Growth: -24.73%
EPS Growth: -48.39%
Country: India
Employees: 18
Sector: General
Sector Strength: 55
Industry: Advertising Agencies

Touchwood Entertainment Ltd. Business Overview & Revenue Model

Company Description

Touchwood Entertainment Limited is an Indian company specializing in comprehensive event management. Its extensive range of services covers wedding planning, including destination weddings, alongside design and decor solutions. The company also orche...

How the Company Makes Money

Touchwood Entertainment Ltd. primarily makes money by providing event and experiential marketing services to clients for a fee. Key revenue streams typically include (1) service/management fees charged for event planning and execution (e.g., project...

Touchwood Entertainment Ltd. Financial Statement Overview

Summary

Mixed fundamentals: the balance sheet is strong (low leverage), but operating performance weakened in FY2026 (revenue down ~10.8% with margin compression) and cash generation is a major concern with negative operating cash flow and deeply negative free cash flow over FY2024–FY2026.

Income Statement

63Positive

Balance Sheet

82Very Positive

Cash Flow

33Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	616.41M	745.80M	688.54M	332.47M	367.09M	266.20M
Gross Profit	581.11M	745.80M	616.76M	332.47M	368.07M	266.24M
EBITDA	57.15M	64.87M	79.46M	50.39M	42.38M	36.45M
Net Income	31.70M	40.49M	51.86M	32.46M	24.66M	21.11M
Balance Sheet
Total Assets	0	574.29M	493.82M	429.38M	339.15M	185.30M
Cash, Cash Equivalents and Short-Term Investments	194.69M	194.69M	224.73M	266.76M	196.52M	71.60M
Total Debt	0	35.35M	13.57M	17.20M	2.68M	4.50M
Total Liabilities	-447.41M	126.87M	86.96M	69.95M	77.59M	28.50M
Stockholders Equity	447.41M	441.13M	400.40M	352.83M	254.84M	156.80M
Cash Flow
Free Cash Flow	-82.98M	-53.63M	-35.08M	-50.45M	21.59M	28.20M
Operating Cash Flow	-38.78M	-6.01M	-1.43M	-24.01M	26.46M	38.97M
Investing Cash Flow	-61.49M	-68.26M	-34.83M	-17.17M	503.00K	-7.07M
Financing Cash Flow	25.33M	21.77M	-8.06M	78.97M	77.12M	-4.50M

Touchwood Entertainment Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price53.31

Price Trends

50DMA59.38Negative

100DMA63.89Negative

200DMA71.59Negative

Market Momentum

MACD-1.85Positive

RSI32.88Neutral

STOCH11.97Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TOUCHWOOD, the sentiment is Negative. The current price of 53.31 is below the 20-day moving average (MA) of 56.83, below the 50-day MA of 59.38, and below the 200-day MA of 71.59, indicating a bearish trend. The MACD of -1.85 indicates Positive momentum. The RSI at 32.88 is Neutral, neither overbought nor oversold. The STOCH value of 11.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TOUCHWOOD.

Touchwood Entertainment Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:TOUCHWOOD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:TOUCHWOOD	52Neutral	INR 590.74M	18.51	―	―	-24.73%	-48.39%
IN:EROSMEDIA	45Neutral	INR 756.76M	-0.63	―	―	-31.13%	-126.35%
IN:SHEMAROO	41Neutral	INR 3.04B	-1.52	―	―	-14.17%	-55.75%
IN:RADAAN	39Underperform	INR 147.86M	-3.89	―	―	-20.82%	-119.89%
IN:TIPSFILMS	39Underperform	INR 1.37B	-2.77	―	―	-45.35%	18.72%
IN:MUKTAARTS	27Underperform	INR 1.06B	-13.48	―	―	7.94%	50.69%

* General Sector Average

Performance Comparison

IN:TOUCHWOOD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:TOUCHWOOD	Touchwood Entertainment Ltd.	53.31	-50.69	-48.74%
IN:EROSMEDIA	Eros International Media Limited	7.89	0.00	0.00%
IN:MUKTAARTS	Mukta Arts Limited	47.00	-20.15	-30.01%
IN:RADAAN	Radaan Mediaworks (I) Ltd.	2.73	-0.74	-21.33%
IN:SHEMAROO	Shemaroo Entertainment Ltd.	105.90	-7.80	-6.86%
IN:TIPSFILMS	Tips Films Limited	317.15	-120.15	-27.48%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 29, 2026

Touchwood Entertainment Ltd. AI Stock Analysis

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