Tips Music Ltd (TIPSMUSIC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

JOJO

Saregama India

Tips Music

PVR Inox

Amagi Media Labs

D B Corp

Nazara Technolo.

Media Matrix

Zee Entertainmen

Hathway Cable

Netwrk.18 Media

Why is Tips Music Ltd ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 70.03%

Healthy long term growth as Net Sales has grown by an annual rate of 30.60%
The company is Net-Debt Free

Flat results in Jun 26

PAT(Q) At Rs 43.70 cr has Fallen at -19.4% (vs previous 4Q average)
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 8.01 cr
PBDIT(Q) Lowest at Rs 53.54 cr.

With ROE of 82.6, it has a Very Expensive valuation with a 31.7 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 10.30%, its profits have risen by 27.1% ; the PEG ratio of the company is 1.4

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 0.93% over the previous quarter and collectively hold 13.35% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tips Music should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Tips Music for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Tips Music

10.3%

0.27

37.92%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.60%

EBIT Growth (5y)

33.02%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

1.27

Tax Ratio

25.65%

Dividend Payout Ratio

53.72%

Pledged Shares

Institutional Holding

13.35%

ROCE (avg)

173.96%

ROE (avg)

70.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

31.71

EV to EBIT

29.97

EV to EBITDA

29.65

EV to Capital Employed

75.49

EV to Sales

20.54

PEG Ratio

1.42

Dividend Yield

1.40%

ROCE (Latest)

255.03%

ROE (Latest)

82.56%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

NET SALES(Latest six months)

At Rs 210.44 cr has Grown at 26.34%

PAT(Latest six months)

At Rs 102.76 cr has Grown at 34.41%

ROCE(HY)

Highest at 110.19%

-10What is not working for the Company

PBT LESS OI(Q)

At Rs 52.48 cr has Fallen at -23.1% (vs previous 4Q average

PAT(Q)

At Rs 43.70 cr has Fallen at -19.4% (vs previous 4Q average

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 8.01 cr

PBDIT(Q)

Lowest at Rs 53.54 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 50.27%

EPS(Q)

Lowest at Rs 3.42

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Here's what is working for Tips Music

Net Sales - Quarterly

Highest at Rs 106.51 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Here's what is not working for Tips Music

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 52.48 cr has Fallen at -23.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 68.27 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 43.70 cr has Fallen at -19.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 54.19 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 53.54 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 50.27%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 52.48 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 3.42

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 8.01 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income - Quarterly

Highest at Rs 5.82 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income