X

Tips Industries Ltd. Stock Analysis

Small Cap
Evaluated by 165 users | BSE: 532375 | NSE: TIPSINDLTD |
Film Production, Distribution & Entertainment
TIPS Industries (TIL) incorporated in 1996, is among the leading media companies in India. The company started by Taurani brothers in the year 1975.  Back then they used to trade in LP's (Long Playing Phonograph Records) for three of the biggest companies in India - HMV, Music India and...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 5.46%11.84%9.67%-4.52%5.73%7.07%-1.08%6.53%2.23%14.2%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 66.672.313810410268.44747.520391
Y-o-Y Gr. Rt.-8.6%90.6%-24.8%-1.3%-33.1%-31.3%1%328%-55.2%
Adjusted EPS (Rs.) 1.867.217.6-10.591.82.01-6.112.180.377.87
Y-o-Y Gr. Rt.-287.6%5.4%-239.3%NA11.7%-404%NA-83%2027%
Book Value per Share (Rs.) 49.85357.245.4645.7446.2147.5148.6649.4156.14
Adjusted Net Profit 311.511.7-16.32.83-8.83.10.511.3
Net Op. Cash Flow (Rs. Cr.) 1344.4-55.4-15.836.63033.343.32530.5
Debt to Cash Flow from Ops 4.130.9-1.78-8.412.892.971.930.830.340.06
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Tips Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3.5%-2.3%24.6%-55.2%
Adjusted EPS 17.4%34.3%NA2027%
Book Value per Share 1.34.25.713.6
Share Price 22.9% 32.6% 25.5% 195.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 3.614.0313.53-20.633.964.32-12.74.530.7514.91
Operating Profit Margin (%) 16.3621.3914.11-4.6314.4221.86-7.2320.183.1-2.21
Net Profit Margin (%) 4.4515.928.46-15.692.714.42-18.66.570.2612.38
Debt to Equity 0.680.471.131.91.511.280.940.510.120.02
Working Capital Days 6576134006556057661,0071,107224253
Cash Conversion Cycle 3653492344384345477305307967
Entity Percentage Holding
Promoters 75.35%
Institutions 0.36%
Non-Institutions 24.29%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Tips Industries Ltd.'s performance infers:

Tips Industries Ltd. earnings have grown by 34.3%, whereas share price has appreciated 32.6% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Tips Industries Ltd. share prices over the last 10 years. Here is what we found out:

Tips Industries Ltd. share price has appreciated 19.4% annually over the past ten years.

TIPS Industries (TIL) incorporated in 1996, is among the leading media companies in India. The company started by Taurani brothers in the year 1975.  Back then they used to trade in LP's (Long Playing Phonograph Records) for three of the biggest companies in India - HMV, Music Read More

TIPS Industries (TIL) incorporated in 1996, is among the leading media companies in India. The company started by Taurani brothers in the year 1975.  Back then they used to trade in LP's (Long Playing Phonograph Records) for three of the biggest companies in India - HMV, Music India and CBS.

Two year later i.e. in 1977 they became the biggest dealers for these companies in Western India

The core business of TIPS is music promotion which is why today it is amongst the leading music companies in India. Besides promoting music the company also engaged in film production, film distribution and event management.

Under music production segment, the company started its journey by producing music for Marathi and Sindhi titles which later got widened into other languages.

Under Music, TIL owns 3,500 titles out of which at least 10 have been 10 million sellers and over 15 have grossed more than 5 millions in sales and another 20 have bagged sales of about a million. To add to its credential, Company holds highest number of gold and platinum discs then any record label in India.

The company also holds copyrights of soundtrack of at least 50 Hindi movies. To acquire soundtrack copyright of every film the company invest about a million dollars and another million dollars is spent on promotion.

The company has marketing network of 1000 wholesalers that has a reach to more than 4,00,000 retailers across India. The company operates two factories that are well equipped with machineries brought from Italy and Denmark. These factories have capacity to deliver more than 1,50,000 cassettes per day to the Indian market.

Under Film production, the company has produced films like Footpath, Ishq Vishk, Fida, Race, Raaz, Kya Kehna, Raja Hindustani, Jab Pyaar Kisise Hota Hai and many more.

Outlook

The key factors affecting the music industry are non-physical music such as online music downloads, radio stations and music television channels. The non-physical music segment is anticipated to be worth Rs. 2.5 billion by the end of 2012. Physical sales will continue to dominate the industry simply by the sheer volume of units being sold and the decreasing prices for the same. TIPS Industries is bound to gain from this scenario.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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