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This entertainment industry stock has delivered fantastic returns of over 100% in a year; do you hold it?

19 October 20233 mins read by Angel One
The company has delivered a profit growth CAGR of 90% over the last 5 years.
This entertainment industry stock has delivered fantastic returns of over 100% in a year; do you hold it?
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Tips Industries Limited has churned multibagger returns to its shareholders in just one year. During this period, the company’s share price jumped from Rs 158.47 on October 19, 2022, to Rs 373.40 on October 19, 2023, an increase of more than 110%.

An investment of Rs 1 lakh in the shares of this company one year ago would have turned to Rs 2.10 lakh today.

Tips Industries Limited (TIL) is a leading Indian music label which creates and monetizes music. The company was incorporated in May 1996 and commenced its business since then. TIL has a music catalogue of film, non-film, devotional, pop and remixes in Hindi, Punjabi, Gujarati, Bhojpuri and other languages.

The music library of the company is one of the most exhaustive in the industry comprising a collection of over 29,000 songs. The music catalogue is licensed to over-the-top (OTT) video platforms, social media platforms, content aggregators, television channels, telecom companies, radio stations, advertisers, event management companies, hotels, restaurants and others.

The sales and revenue for the company are constantly increasing. The company has delivered good profit growth of 90% CAGR over the last 5 years. The company has signed various deals with music and social media platforms like Resso, Spotify and YouTube.

The music streaming industry in India is growing rapidly, driven by a number of factors, including: 

Digital/OTT Rights: India has the second-highest digital consumption of services globally. OTT players are expected to spend Rs 30,000 crore on content over 2021-25.

Convenience: Smartphones have made music available 24×7 with a tap and a swipe.

Rising Data Consumption: Data usage per smartphone is expected to increase from 18 GB/month in 2021 to 50 GB/month in 2027.

Cheap Data: India has the lowest data costs in the world.

Smarter Phones: Smartphones provide an improved user experience for media consumption compared to feature phones.

Today, the stock opened at Rs 359.85, with a high and low of Rs 383 and Rs 350, respectively. The stock ended the trading session at Rs 353, up by 1.80%. The stock has a 52-week high of Rs 383 and a 52-week low of Rs 143.35. The company has a ROCE of 88.6% and an ROE of 64.0% with a market capitalisation of Rs 4,623 crore.

The stock has shown strong growth and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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