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Our Rating: HOLD
Mehabe score: 5
G Factor: 4
Piotski Score: 7
The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 7.
Description
Tips Industries is engaged in Music (Audio/ Video) and Film Production/ distribution.Site: TIPSINDLTD
Market Cap: | Rs 1,208 cr | Price: | 933.0 | Trading pe: | 47.3x |
Book-value: | 54.4/share | Div yield: | 0.16 % | Earning yield: | 3.36% |
Face-value: | 10.0/share | 52week high: | 1064.00 | 52week low: | 105.00 |
Technical Analysis
- Stock trades at 933.0, above its 50dma 747.87. It also trades above its 200dma 472.09. The stock remains bullish on techicals
- The 52 week high is at 1064.00 and the 52week low is at 105.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 31.95% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 38.31%
Weakness
– Stock is trading at 17.14 times its book value
– has a low return on equity of 7.37% for last 3 years.
-Debtor days have increased from 53.62 to 72.77 days.
Competition
– The industry trades at a mean P/E of 21.8x. Tips Industries trades at the industry’s max P/E of 47.26x. TIPSINDLTD trades at a P/E of 47.3x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. TIPSINDLTD has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 17.4%. The max 1- month return was given by Saregama India: a return of 28.06 %
Quarterly Results
- Sales for period ended Mar 2021 is Rs 28.0 cr compared to Rs 19.0 cr for period ended Mar 2020, a rise of 47.4%
- Operating Profits reported at Rs 19.0 cr for period ended Mar 2021 vis-vis 1.0 for period ended Mar 2020 .
- Operating Margins expanded 6259.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
- The EPS for Mar 2021 was Rs 14.09 compared to Rs 9.55 for previous quarter ended Dec 2020 and Rs 0.25 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
- Company reported sales of Rs 91.0 cr for period ended Mar 2021 vis-vis sales of Rs 91.0 cr for the period ended Mar 2020, The 3 year sales cagr stood at 24.6%.
- Operating margins expanded to 61.0% for period ended Mar 2021 vis-vis -2.0% for period ended Mar 2020, expansion of 6300.0 bps.
- Net Profit reported at Rs 43.0 cr for period ended Mar 2021 vis-vis sales of Rs 11.0 cr for the period ended Mar 2020, rising 74.4%.
- Company recorded a healthy Net Profit CAGR of 142.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 14.0% compared to 7.0% over the last 3 Years.
– The stock has given a return of 716% on a 1 Year basis vis-vis a return of 91% over the last 3 Years.
– The compounded sales growth on a TTM bassis is -17% vis-vis a compounded sales growth of 25% over the last 3 Years.
– The compounded profit growth on a TTM basis is 116% vis-vis a compounded profit growth of 54% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.77% vis-vis 0.35% for Dec 2020
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 24.25% vis-vis 24.68% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 31.95% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 38.31% – Stock is trading at 17.14 times its book value
– has a low return on equity of 7.37% for last 3 years.
-Debtor days have increased from 53.62 to 72.77 days.
- The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
- Technically, the stock remains above its 50 DMA 747.87 and is trading at 933.0, thus bullish price action wise.
- Thus, overall we retain a HOLD on the stock.
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