10,000 percent returns in this multibagger small-cap stock: This music company reports 32 percent revenue growth and an interim dividend declared for Q2 FY25

The stock gave multibagger returns of over 142.61 per cent in just a year whereas BSE small-cap Index is up by 49.86 per cent.

TIPS Music Ltd (formerly Tips Industries Ltd.), a leading Indian music label, announced its Financial Results for the Quarter Ending September 30, 2024.

In Q2FY25, the company reported a revenue of Rs 80.6 crore, marking a 32 per cent year-on-year increase. For the first half of FY25, revenue reached Rs 154.5 crore, up 36 per cent compared to the same period last year. The net profit of the company rose to Rs 39.7 jumped by 21 per cent year on year basis. The company's content cost rose significantly to Rs 13.8 crore for the quarter, compared to Rs 4.7 crore in Q2FY24, reflecting a 194 per cent increase. During the quarter, the company launched 125 new songs, including 39 film songs and 86 non-film songs.

Additionally, YouTube subscribers grew by 21 per cent, reaching a total of 108 million. The company declared an interim dividend of Rs 2 per share for Q2FY25, amounting to Rs 25.56 crore. In total, the company has distributed Rs 97.74 crore to shareholders in FY25 so far, through dividends and buybacks.

Tips Industries Limited, incorporated in 1996, is engaged in the business of Production and Distribution of motion Pictures and acquisition and exploitation of Music of Rights. The co is also a leading producer of Punjabi films in the country.

Commenting on the Results, Mr. Kumar Taurani – Chairman & Managing Director said, “I am pleased to share that the company has announced a 2nd interim dividend for the year of Rs. 2 per share, in addition to interim dividend distributed and buyback conducted in Q1FY25. Our revenue for the quarter stood at ₹ 80.6 Cr up by 32% YOY with a PAT of ₹ 48.2 Cr increasing by 21% YOY. Our relentless focus is on acquiring high-quality music content.”

Mr. Girish Taurani – Executive Director said, “In Q2FY2025 we successfully launched 125 new songs, of which, 39 were new Film songs and 86 Non-Film songs, resulting in a diverse range of offerings that cater to a wide audience. This quarter, we released two musical short films, “Tedi Medi” and “Beinteha”, both of which have received significant appreciation from the audience. A notable release for this quarter is the song “Yaad Reh Jaati Hai” from the film “The Buckingham Murders”, sung by the renowned B Praak, along with another song released this quarter “Dua Kijiye”. Both tracks have gained popularity and continue to grow with our audiences.”

Mr. Hari Nair – Chief Executive Officer said, “Our YouTube channels cumulative subscriber base has now reached 108 million, reflecting our growing influence and engagement. The market share on audio digital platforms like Spotify, Saavn etc is increasing steadily. Additionally, the new division of “Brands & Partnership” has started clocking revenues; Motorola used our track “Rangeela Re”, for launching its new set of colorful handsets”

The company is a Small-Cap company having a market cap of Rs 9,907 crore with a 5-year stock price CAGR of 168 per cent. The stock gave multibagger returns of over 142.61 per cent in just a year whereas BSE small-cap Index is up by 49.86 per cent. From Rs 7.14 per share to Rs 773.95 per share, the stock returned over 10,000 per cent in just 5 years.

Investors should keep an eye on this music stock under the radar.

Disclaimer: The article is for informational purposes only and not investment advice.