Tips Music Limited

Communication Services — Entertainment · NSE

₹751.00+₹66.60 (+9.73%)

DalalBaazaar Score

77 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Tips Music Limited engages in the acquisition and exploitation of music rights in India and internationally. The company involved in the production and acquisition of audiovisual music content and monetisation of the content library digitally.

IndustryEntertainment

SectorCommunication Services

Employees69

Annual revenue₹376 Cr

How does it make money?

Turns over ₹376 Cr a year. Of every ₹100 of sales, about ₹58 reaches shareholders as profit, with ₹76 left at the operating level before interest, tax and depreciation. Each of its 69 employees supports ₹5.44 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.44 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 110.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 78.1% against a peer median of 20.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE20.2%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 19.4% and earnings to grow about 20.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+19.4%

Est. earnings growth+20.2%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +101% while net margin moved +41% 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+101%

Margin effect+41%

DalalBaazaar Score

77/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 46.1x is demanding — it needs sustained high growth to justify
✓ P/E is 23% below its own historical median of 59.7x — cheap by its own standards
✗ P/B of 36.93x is a steep premium to book

Quality vs. Valuation

Company Quality

87/ 100

Excellent

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

Valuation

46/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

46.1x

3Y Median

59.7x

40 monthly readings · mean 59.9x · range 37.9x–106.5x

Sector Median

21.7x

median of 2 sector peers

🟢Current valuation is approximately 23% below its 3y median of 59.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 112% above the peer median of 21.7x.

vs. its own history

Cheap

59.7x median over 40 months · -23%

vs. sector peers

Expensive

21.7x median of 2 peers · +112%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

33.3x

PEG

1.11

What's Good / What's Bad

🟢 What's Going Well5

Cash generation is improving
Free cash flow is up 137% over 3 years.
Return on equity is rising
ROE has improved from 56.2% to 83.4%.
Return on capital is rising
ROCE has improved from 76.0% to 110.2%.
High return on capital employed
ROCE of 110.2% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.6 points, from 84.0% to 76.4%.
🟡Debt is increasingFinancial
Total debt is up 33% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 110.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 23% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 84.0% to 76.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 112% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Small 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 20% a year✓ 26.2% CAGR
Latest reported year was 34.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 74%✓ 76.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹191 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 107%✓ 110.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹9,550 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

46.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

36.93x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹16.28

Profitable

Profitable on a per-share basis

ROE

78.1%

Strong

Strong capital efficiency

ROCE

110.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.26x

Moderate

Moderate leverage

Revenue Growth (YoY)

34.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

23.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.20%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹165 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

32.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

45.9%

Good

Assets are working hard

Operating Margin

69.7%

Good

Healthy core-business profitability

Net Margin

53.5%

Good

Strong bottom-line conversion

Current Ratio

4.67

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.24

Defensive

Steadier than the market

52W Range Position

97%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

665.6 / 658.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

63.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹187 Cr	₹242 Cr	₹311 Cr	₹376 Cr	+26.2%
EBITDA	₹157 Cr	₹172 Cr	₹219 Cr	₹287 Cr	+22.3%
EBITDA Margin	84.0%	71.2%	70.3%	76.4%	—
PAT (Net Profit)	₹77 Cr	₹127 Cr	₹167 Cr	₹217 Cr	+41.5%
EPS	₹5.91	₹9.9	₹13.02	₹16.96	+42.1%
ROE	56.2%	70.8%	79.5%	83.4%	—
ROCE	76.0%	66.9%	97.1%	110.2%	—
Total Debt	₹4 Cr	₹5 Cr	₹3 Cr	₹5 Cr	+9.9%
Free Cash Flow	₹80 Cr	₹230 Cr	₹119 Cr	₹191 Cr	+33.4%

🟢 Revenue has grown at 26.2% a year over 3 years.

🟢 EBITDA has grown at 22.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 84.0% to 76.4% over 3 years (-7.6 pts).

🟢 PAT (Net Profit) has grown at 41.5% a year over 3 years.

🟢 EPS has grown at 42.1% a year over 3 years.

🟢 ROE has risen from 56.2% to 83.4% over 3 years (+27.2 pts).

🟢 ROCE has risen from 76.0% to 110.2% over 3 years (+34.2 pts).

🔴 Total Debt has grown at 9.9% a year over 3 years.

🟢 Free Cash Flow has grown at 33.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹362 Cr

Total Liabilities

₹102 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹197 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

7.3%

Insider Holding

65.7%

Corporate Actions

Dividend Rate

₹9

Ex-Dividend Date

22 Oct 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹845

+12.5% vs CMP

Target Range

₹815 – ₹890

Peer Comparison

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

Recent News

4 positive2 mixed

Tips Music Share Price near 52-week high: price, results

Univest, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Earnings Beat: Here's What Tips Music Limited (NSE:TIPSMUSIC) Analysts Are Forecasting For This Year

Simply Wall Street, 18 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

TIPS Music zooms 10% to hit 52-wk high after Q2 nos, ₹6.50/share dividend

Business Standard, 16 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Tips Music Q2FY27 Results: Net profit up 23.6% YoY, ₹6.50 dividend declared

scanx.trade, 18 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Tips Music shares up 6% today after strong Q2 2026 results, dividend announcement; 27% up in 6 months - key highlights

Livemint, 16 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Tips Music Q2 Results: Net Profit Rises 25% YoY To Rs 66 Crore; Interim Dividend Declared

NDTV Profit, 15 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingRisk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑