High ROE and ROCE multibagger stock: Indian music label company reports blockbuster performance; PAT jumps 66 per cent!

The dividend for FY24 stood at Rs 6 per share taking the dividend payout ratio to 60.6 per cent.

TIPS Industries Limited (Tips Music), a leading Indian music label which creates and monetizes music, announced its Financial Results for the Quarter & Year Ending March 31, 2024.

Key Financial Performance

Key Highlights

Reports stellar quarterly revenue growth with revenues of Rs 63.3 crore, reflecting a y-o-y growth of 22 per cent. Revenue for FY24 stood at Rs 241.6 crore up 29 per cent y-o-y. PAT jumps 66 per cent to Rs 127.2 crore y-o-y.

The content cost for the quarter stood at Rs 23.9 crore compared to Rs 19 crore in Q4FY23. The Content cost for FY24 stood at Rs 55.6 crore.

For Q4FY24 the company released 179 new songs. Out of 179 new songs, 123 were new film songs and 56 non-film songs. Key releases during the last quarter “Choli ke Peeche”, “Naina” and “Ghagra” from Crew were among the Top 10 Trending songs across major platforms.

The company’s produced song Dil Laga Liya from the film Dil Hai Tumhara crossed 1 billion views on YouTube. YouTube subscribers now stand at 97 million. For Q4FY24 YouTube views were 47.8 billion up 42 per cent y-o-y.

The dividend for FY24 stood at Rs 6 per share taking the dividend payout ratio to 60.6 per cent. As a part of our ongoing efforts to reward our shareholders the Board of Directors has announced a buyback at Rs 625 per share, in which the promoters will not be participating.

Today, shares of Tips Industries Ltd plummeted 1.75 per cent to Rs 453.70 with an intraday high of Rs 467.25 and an intraday low of Rs 450.90. The stock has an ROE of 81 per cent and an ROCE of 107 per cent.

Tips Industries Ltd, founded in 1996, is a major player in both Indian music and film production. They have a vast music library exceeding 30,000 songs across various genres and languages. Additionally, they've produced and released around 40 Hindi films in the last two decades, and not only do they create the movies, but they also manage the distribution rights, selling them to theatres, satellite channels, and other broadcasters. They're even a leader in Punjabi film production within India.

The stock gave multibagger returns of 200 per cent in just 1 year whereas BSE Small-Cap Index was up by 63 per cent. Investors should keep an eye on this small-cap stock.