DINESH

Amagi Media Labs

Latest CMP 549
Today's Change ▼ -2.55%
52-Week High / Low 675 | 317
Price Date: 30-Sep-2026
Recommendation Buy
Target Price 951
Expected Upside 31.6%
Forecast Horizon 2 Years
Historical CAGR Not Available
1,000 Invested —
Today's Value —
Investment Period < 5 Years

Stock Snapshot

Post Results Return
-9.1%
Mild Negative Re-rating
1-Year Target Price
732
2-Year Target Price
951
52-Week High / Low
675 / 317
20-Day Return
-2.3%
Market Cap (Cr.)
11,887
Current PE
124.6
P/BV Ratio
6.8
Dividend Yield
—
Industry PE
18.1

Price Performance

Vista Outlook

Basis of our Recommendation

Amagi Media Labs is navigating a transformative phase in the media and entertainment sector, driven by a strategic shift to cloud-native solutions and a focus on AI-driven monetization. Management's commentary highlights a robust operational momentum, with a net revenue retention rate exceeding 125% and a successful transition to positive EBITDA. These factors support Vista's forecast of stable revenue growth and improving margins, as the company capitalizes on the expanding FAST ecosystem and its proprietary AI tools. However, potential execution risks related to industry consolidation and pricing pressures in the monetization segment warrant attention. The broader media industry is experiencing strong growth, bolstered by improving pricing power and stable demand for digital content, which aligns with Amagi's strategic priorities. Over the next 12-24 months, key opportunities include the rollout of new AI products and expansion into international markets, while watchpoints include regulatory compliance challenges and the competitive landscape. Vista's outlook anticipates a 15% upside, with a 12-month target price of approximately 648.52, reflecting confidence in Amagi's long-term growth trajectory despite potential short-term volatility

👍 Why We Like This Stock

  • Strong net revenue retention (>125%) indicates robust customer loyalty and growth potential
  • Transition to positive EBITDA and focus on AI-driven monetization enhance profitability prospects
  • Expansion into international markets and new AI products present significant growth opportunities

⚠ Things To Watch Out For

  • Execution risks related to industry consolidation could impact operational stability
  • Pricing pressures in the competitive monetization segment may affect margins
  • Regulatory compliance challenges could complicate global operations

Key Parameters

Balance Sheet Strength
Conservatively Financed
Market Share
Stable
Industry Outlook
Improving
Analyst View
Strong Buy
Dividend History
No Dividend History
FII Holdings
Stable

Financial Snapshot

View Technicals Analysis →
Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 879 1,163 1,506 1,872 2,287
Profit Before Tax (Cr.) -237 -52 87 136 194
PBT Margin -27.0% -4.5% 5.8% 7.3% 8.5%
Net Profit (Cr.) -258 -77 72 112 159
Earnings Per Share -11.9 -3.6 3.3 5.2 7.4

Analyst Recommendations

Broker Recommendation Target Price Date
ICICI Securities ▲ Buy 700 07-Sep-2026
Kotak Securities ▲ Buy 625 30-Jun-2026
Goldman Sachs ▲ Buy 480 23-Jun-2026
Consensus Recommendation ▲ Strong Buy
Consensus Target 700
Coverage 3 Analysts
Analysts' Viewpoint
Amagi's positioning as a technology enabler for media's shift to cloud infrastructure, coupled with a high Net Revenue Retention rate, drives analyst optimism. The company's expansion in the FAST ecosystem and AI tool monetization further bolster growth prospects. However, execution risks from industry consolidation and pricing pressures in monetization segments present challenges. Analysts highlight the potential for significant margin expansion through operating leverage as revenue growth surpasses fixed costs by FY28.

Company Overview

Show Company Profile

Amagi Media Labs Limited operates as a software-as-a-service company that connects media companies to their audiences through cloud-native technology. The company's platform helps content providers and distributors upload and deliver video over the internet through smart televisions, smartphones, and applications instead of traditional cable or set top box services, as well as helps monetize such content through targeted advertising services for advertisers. It serves various clients in the media and entertainment industry, including content owners, broadcasters, TV networks, streaming platforms, advertisers, sports networks, and digital content providers. The company was founded in 2008 and is based in Bengaluru, India.