‘Ramayana’ impact: Ranbir Kapoor-backed smallcap stock rallies 320% in one year, should you buy?

The shares of Ranbir Kapoor-backed Prime Focus have rallied a whopping 320% in just one year as interest around the much-awaited movie ‘Ramayana’ exploded, boosting investor sentiment for the shares of the production house backing the film.

The shares of the company hit a fresh 52-week high of Rs 359 apiece on Monday. This marks a surge of more than 320% from the low of Rs 85 apiece with which the stock was trading just a year ago, during April 2025.

Namit Malhotra’s Prime Focus Studio is known for stellar visual effects, animation, production and post-production of movies. It acquired visual effects house Double Negative (DNEG) back in 2014, which later won Academy Awards for its work in popular movies like TENET, Dune: Part One and Dune: Part Two, bringing its tally of Oscars to eight.

The renewed optimism for the smallcap stock comes as the Ranbir Kapoor-starrer ‘Ramayana’ is all set to release later this year in Diwali. The trailer of the movie was recently released, garnering mixed reviews from film critics.

‘Ramayana’ will be released in two parts – The first part will be released in Diwali 2026, while the second part will be released on Diwali 2027. Ranbir Kapoor will portray Lord Rama in the movie, while Sai Pallavi will play the role of Sita. Yash, who has a massive pan-India fanbase and also serves as co-producer, will play the role of Ravana in the movie.

Massive OTT deals on the line

Meanwhile, reports suggest that producer Namit Malhotra has turned down a massive Rs 700 crore offer for the digital rights of the movie for OTT release. He rejected the Rs 700 crore offer that covered both the installments of the movies, as he is expecting a Rs 1,000 crore OTT deal considering the scale and investment behind the ambitious project, Bollywood Hungama reported citing sources.

Following shareholder approval for a preferential equity issuance, Ranbir Kapoor reportedly acquired 12.5 lakh shares in Prime Focus at Rs 120 apiece, translating to an estimated investment of around Rs 15 crore, back in July 2025.

Prime Focus shares are up around 50% in 2026 so far. The stock fell prey to mild profit booking on Tuesday, declining over 1% to trade at around Rs 346 apiece. However, in the longer term, the stock gained more than 400% in five years.

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