Is Phantom Digital Effect worth Investing?

Company Description

Phantom Digital Effects Limited (PDEL) is a Certified Trusted Partner Network (TPN) company which operates with a full-fledged creative VFX studio, based in India with offices operating in US and Canada. PDEL was incorporated in the year 2016 and as a TPN Certified studio, they offer end-to-end services to production houses encompassing services like Completing a Shot with final compositing, Creating 3D elements, photo real creatures, and environments, Rig/Wire removal, paint clean-up, rotoscope, 3D match move, 3D animation (storyboard & animation), Pre-visualization Game cinematics , Fire/water Fx and other natural phenomena 3D ride animation for commercials, feature films, and Web series globally. PDEL operates globally in USA and Canada through agencies and additionally they have two operating studios in Mumbai and Chennai. Phantom is confounded with a team of creative driven professionals who are capable of managing complex and scalable VFX production tasks to deliver high-quality, industry standard content for the client. Currently they are one of India's trusted Visual Effects providers backed by esteemed clientele and vast industry experience and aim to build strong relationships with the existing clients to build competitive advantage.

Investment Rationale

Animation and visual effects studios have seen a considerable increase in content demand for domestic shows in the recent years with the animation segment alone recoding a growth of 10% in 2020.

•India has the world's second-largest entertainment market and according to BCG and the CII research, the Indian animation and visual effects industry has the potential to grab 20 to 25% of the worldwide AVGC market.

•In 2021, India's animation and VFX industry was valued at around INR 83 Bn and is estimated to grow at ~29% till 2024, with the industry's value amounting to INR 180 Bn.

•According to one study, this sector can provide 75,000 to 125,000 direct and indirect jobs by 2025 and can be beneficial to the Indian economy.

•PDEL is a prominent player of this industry, competing with major global visual effects studios like Pixar, Walt Disney Animation, and Animal Logic amongst others.

•Having an established global presence, PDEL capitalizes on providing cutting-edge VFX solutions which are highly reliable, prompt, and creative and has a lasting impact on the content consumers.

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