Understanding the Current Rating
The 'Sell' rating assigned to Tips Films Ltd indicates a cautious stance for investors, suggesting that the stock may underperform relative to the broader market or its sector peers. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the stock’s investment potential as of today.
Quality Assessment
Currently, Tips Films Ltd holds an average quality grade. This reflects a middling position in terms of operational efficiency, profitability, and business sustainability. The company’s long-term growth has been notably weak, with operating profit declining at an annualised rate of -194.91% over the past five years. Such a steep contraction in profitability signals challenges in maintaining competitive advantage or scaling operations effectively.
Valuation Perspective
The valuation grade for Tips Films Ltd is classified as risky. The stock is trading at levels that suggest elevated risk compared to its historical averages. Negative EBITDA and deteriorating profit margins have contributed to this assessment. Over the past year, the company’s profits have plunged by -616.7%, while the stock price has declined by approximately -33.94%. This combination of poor earnings performance and stretched valuation metrics underlines the cautious outlook embedded in the 'Sell' rating.
Financial Trend Analysis
The financial trend for Tips Films Ltd is currently flat, indicating stagnation rather than growth or improvement. The latest quarterly results ending September 2025 reveal a sharp decline in profitability, with profit before tax excluding other income falling by -93.1% to a loss of ₹16.07 crores, and net profit after tax dropping by -68.1% to a loss of ₹14.25 crores compared to the previous four-quarter average. Operating cash flow for the year is also at a low point, registering a negative ₹179 crores, which raises concerns about the company’s liquidity and operational cash generation capacity.
Technical Outlook
From a technical standpoint, the stock is mildly bearish. Recent price movements show a 1-day decline of -0.29%, a 1-month drop of -8.59%, and a 6-month fall of -24.15%. Year-to-date, the stock has declined by -3.86%. These trends suggest that market sentiment remains subdued, with the stock underperforming key benchmarks such as the BSE500 over the last one year, three years, and three months. The technical grade reflects this cautious momentum, signalling limited near-term upside potential.
Stock Returns and Market Performance
As of 23 January 2026, Tips Films Ltd has delivered disappointing returns across multiple time frames. The one-year return stands at -33.94%, significantly underperforming broader market indices. The stock’s underperformance is compounded by weak earnings and cash flow metrics, which have eroded investor confidence. This performance backdrop supports the current 'Sell' rating, advising investors to approach the stock with caution or consider alternative opportunities.
Summary for Investors
In summary, the 'Sell' rating for Tips Films Ltd reflects a combination of average quality, risky valuation, flat financial trends, and bearish technical signals. Investors should interpret this rating as a recommendation to limit exposure to the stock given its current challenges and market positioning. The rating update on 16 December 2025 incorporated these factors, and the latest data as of 23 January 2026 confirms that the company continues to face significant headwinds.
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Contextualising the Rating in the Media & Entertainment Sector
Within the Media & Entertainment sector, Tips Films Ltd’s microcap status and financial struggles place it at a disadvantage relative to larger, more stable peers. The sector often rewards companies with strong content pipelines, robust cash flows, and scalable business models. Tips Films Ltd’s negative EBITDA and cash flow challenges highlight the risks inherent in its current business model. Investors seeking exposure to this sector may find more compelling opportunities in companies demonstrating stronger fundamentals and growth trajectories.
What the Mojo Score Indicates
The company’s Mojo Score currently stands at 31.0, reflecting the overall assessment of its investment appeal. This score, while improved from a previous 26, remains low and consistent with the 'Sell' grade. The score aggregates multiple factors including financial health, valuation, and technical trends, providing a single metric to gauge the stock’s attractiveness. A score in this range signals caution and suggests that the stock is not favoured for accumulation at present.
Investor Takeaway
For investors, the 'Sell' rating serves as a clear indication to reassess exposure to Tips Films Ltd. The company’s ongoing operational difficulties, combined with negative returns and a challenging valuation environment, suggest limited upside potential in the near term. While the rating was updated in December 2025, the current data as of January 2026 confirms that the company has yet to demonstrate meaningful improvement. Investors should consider this rating as part of a broader portfolio strategy, balancing risk and reward carefully.
Looking Ahead
Going forward, any change in the company’s rating will depend on improvements across the four key parameters. Enhanced profitability, stabilisation of cash flows, and a more favourable technical outlook would be necessary to shift the current cautious stance. Until such developments materialise, the 'Sell' rating remains a prudent guide for investors navigating the stock’s prospects.
Conclusion
Tips Films Ltd’s current 'Sell' rating by MarketsMOJO, last updated on 16 December 2025, reflects a comprehensive evaluation of its financial and market position as of 23 January 2026. The rating advises investors to exercise caution given the company’s average quality, risky valuation, flat financial trends, and bearish technical signals. This measured approach helps investors make informed decisions aligned with their risk tolerance and investment objectives.
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