SEBI Advisor Calls It High-Risk, High-Reward Bet Despite Recent Marquee Investors’ Interest

Shares of Prime Focus Ltd. are in focus after marquee investors, including Madhukela, Yashkela, Ramesh Damani, Samyak Enterprises, Utpal Shah, and FF Securities, disclosed stakes in the company as of September. 

While their entry has sparked retail attention, SEBI-registered investment advisor Wealth Wishers advises investors to assess the business independently, rather than blindly following big names.

Prime Focus has rallied 16% in the past month. 

Prime Focus derives about 80% of its revenue from DNEG’s high-end visual effects business, while Redefine contributes 10–12% with lower-budget VFX work. 

Prime Focus Technologies, recently integrated into DNEG, offers AI-driven workflow and post-production tools, creating a combined platform for clients. The company operates across 23 locations in seven time zones, with 84% of revenue coming from overseas clients.

Strengths

Wealth Wishers pointed to Prime Focus’ leadership in global VFX, its one-stop model combining VFX and AI, its wide geographical footprint, and the growing demand for visual effects in the streaming and entertainment industries. 

The advisor also noted that after two years of losses linked to industry strikes, profitability has begun to show signs of recovery.

Risks

The advisor flagged heavy leverage as the biggest concern. Prime Focus has a debt of around ₹7,000 crore, with interest costs alone of ₹525 crore against annual revenue of about ₹955 crore. 

Its fixed-cost-heavy model, dominated by skilled manpower salaries, adds further risk during industry slowdowns. 

Cyclical factors, such as strikes, production delays, and reduced content spending, can also pressure earnings, while investor sentiment can swing sharply depending on the headlines.

Outlook

Wealth Wishers described Prime Focus as a high-risk, high-reward opportunity. Its strong positioning in Hollywood VFX and integration of AI-driven tools offer long-term potential, but meaningful returns depend on stabilizing revenues and reducing debt. 

The advisor stressed that the stock may suit only those with patience, deep risk tolerance, and confidence in the long-term growth of the entertainment sector.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘neutral’ amid ‘normal’ message volume.

Prime Focus’ stock has risen 32.8% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.