Tips Films Limited

Communication Services — Entertainment · NSE

₹315.40−₹0.55 (−0.17%)

DalalBaazaar Score

33 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company is currently losing money, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Tips Films Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Tips Films Limited engages in the production and distribution of films, web-series, and related content in India and internationally. The company was incorporated in 2009 and is based in Mumbai, India.

IndustryEntertainment

SectorCommunication Services

Employees19

Annual revenue₹158 Cr

How does it make money?

Turns over ₹158 Cr a year. Of every ₹100 of sales, about ₹-10 reaches shareholders as profit, with ₹-9 left at the operating level before interest, tax and depreciation. Each of its 19 employees supports ₹8.33 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹8.33 Cr

Who are its competitors?

The closest listed comparisons in its industry are BHARTI AIRTEL LIMITED, VODAFONE IDEA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -46.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE20.2%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +158% while net margin moved -125% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+158%

Margin effect-125%

DalalBaazaar Score

33/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 79.5 points over the period

Quality vs. Valuation

Company Quality

33/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

29/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well0

Nothing stands out as clearly improving on the years of data available.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 26.5% to -53.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 33.6% to -46.7% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 5 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 973% over 3 years, from ₹18 Cr to ₹188 Cr.
🔴High leverageFinancial
Debt/Equity of 6.30x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -20.2x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹16 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 50.1 points, from 41.0% to -9.1%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹13 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.96 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 41.0% to -9.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 6.30x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 26.5% to -53.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 28% a year✓ 37.1% CAGR
Latest reported year was -49.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -11%✓ -9.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹13 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -20.2x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ -46.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 3 neutral · 7 weak

Market Cap

₹136 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

4.56x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-115.68

Loss-making

Negative earnings per share — the business is losing money

ROE

-53.0%

Weak

Weak capital efficiency

ROCE

-46.7%

Weak

Low return on total capital employed

Debt/Equity

6.30x

High

High leverage

Revenue Growth (YoY)

-49.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

65.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹13 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-61.3%

Weak

Thin margins leave little room for error

Net Margin

-45.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.96

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

1.06

Market-like

Moves roughly in line with the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

320.3 / 334.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹61 Cr	₹78 Cr	₹74 Cr	₹158 Cr	+37.1%
EBITDA	₹25 Cr	₹2 Cr	-₹43 Cr	-₹14 Cr	—
EBITDA Margin	41.0%	2.2%	-57.9%	-9.1%	—
PAT (Net Profit)	₹24 Cr	₹1 Cr	-₹45 Cr	-₹16 Cr	—
EPS	₹56.29	₹2.52	₹-105.02	₹-36.66	—
ROE	26.5%	1.2%	-100.0%	-53.0%	—
ROCE	33.6%	1.0%	-90.7%	-46.7%	—
Total Debt	₹18 Cr	—	₹190 Cr	₹188 Cr	+120.6%
Free Cash Flow	-₹27 Cr	₹21 Cr	-₹179 Cr	-₹13 Cr	—

🟢 Revenue has grown at 37.1% a year over 3 years.

🔴 EBITDA has turned negative, from ₹25 Cr to -₹14 Cr.

🔴 EBITDA Margin has fallen from 41.0% to -9.1% over 3 years (-50.1 pts).

🔴 PAT (Net Profit) has turned negative, from ₹24 Cr to -₹16 Cr.

🔴 EPS has turned negative, from ₹56.29 to ₹-36.66.

🔴 ROE has fallen from 26.5% to -53.0% over 3 years (-79.5 pts).

🔴 ROCE has fallen from 33.6% to -46.7% over 3 years (-80.3 pts).

🔴 Total Debt has grown at 120.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹242 Cr

Total Liabilities

₹212 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

-₹13 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.6%

Corporate Actions

Ex-Dividend Date

11 Aug 2023

Peer Comparison

Company	P/E	ROE
BHARTI AIRTEL LIMITED	39.8x	20.2%
VODAFONE IDEA LIMITED	3.6x	—

Recent News

2 mixed4 general

Tips Films Share Price rises today; sector and peer view

Univest, 06 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Tips Films Limited (TIPSFILMS.NS) Slips Over 2% on NSE, Drifts Toward Key Support Zone - EMA Signal

siam.in, 08 Oct

TIPSFILMS Historical Data

Equitypandit, 06 Feb

Tips Films Ltd (NSE: TIPSFILMS) Declines 5.80% as Stock Draws Market Attention

Kalkine India, 30 Sept

Tips Music maintains 20% revenue, profit growth guidance for FY27; sees upside of 2-3%

CNBC TV18, 15 Oct

Tips Films Ltd. Share Price: Today’s Rise and Valuation

Univest, 25 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Revenue growth is negative (-49.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 5 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑