Tips Industries Limited, a name synonymous with Bollywood blockbusters and chart-topping Punjabi hits, has become a sensation among investors. Its skyrocketing share price, delivering over 1200% returns in just 3 years, has everyone’s ears perked up. But before you jump on this stock, let’s peek behind the curtain and see if this is a sound investment or a risky gamble.
Weekly Chart Analysis
The weekly chart of Tips Industries stock tells a compelling tale of success.
From trading at around 27 rupees per share at the end of 2020, the stock has surged impressively, now standing tall at over 355 rupees per share. This remarkable ascent translates into more than a 1200% return for investors within just 3 years. But what’s fueling this meteoric rise?
Quarterly Results Showcase Resilience and Growth
Tips Industries Limited boasts stellar quarterly results, with the latest period marking a historic high in revenue at ₹60.9 Cr, reflecting a robust 23% year-on-year growth. Notably, the company has witnessed a content cost reduction from ₹17.2 Cr in Q2 FY23 to ₹4.7 Cr in Q2 FY24. The release of 130 new songs in Q2FY24, coupled with a substantial growth in YouTube subscribers and views, underlines the company’s dominance in the music industry. An interim dividend of ₹2.00 per share for Q2 FY24 has been approved, affirming the company’s commitment to rewarding its shareholders. Additionally, the appointment of Mr. Hari Nair as the new CEO adds another layer of experience to the company’s leadership.
Pros Highlight the Company’s Solid Foundation
Tips Industries Limited comes with a compelling set of advantages for investors. The company is nearly debt-free, promising stability and financial resilience. Anticipate a strong performance in the upcoming quarter, as evidenced by the company’s consistent profit growth of 89.6% CAGR over the last 5 years. A remarkable return on equity (ROE) track record, with a 58.8% ROE over the past 3 years, further cements the company’s position. Notably, debtor days have improved from 49.5 to 39.6 days, showcasing effective financial management.
With its impressive performance, sound financial health, and ambitious growth strategies, Tips Industries Limited presents a compelling investment prospect. The recent surge in its stock prices, combined with a strong foundation, portrays a positive outlook. However, as is prudent with any investment decision, it is crucial to conduct comprehensive research. Seeking advice from a financial advisor is recommended to ascertain whether Tips Industries aligns effectively with your financial goals and risk tolerance.
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