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.
