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

India

Tips Films Limited

Communication Services

The company pays dividends on rare occasions. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. 

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 10ppts over six months and grown 9ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -8.7% in the last 12 months, a decline from -0.4% in FY23. 

Historically, TIPSFILMS.BO has reported modest net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -10.9%, down from -1.7% in FY23. 

Tips Films Limited reported a return on equity (RoE) of -9.4% in the last 12 months, down from -0.9% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to -5.6% in the last 12 months, a decrease from -0.7% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to -5.9%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.8 in the past several years. This ratio implies a poor shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

TIPSFILMS.BO has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is very unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, bleak profitability, negligible return on capital, inadequate interest coverage, and poor cash flow generation.

In highly turbulent market conditions, TIPSFILMS.BO is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, TIPSFILMS.BO is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to notable. We would also like to highlight the notable intraday volatility of the instrument. 

Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overvalued on P/FCF. 

Tips Films Limited

₹ 490

2

Tips Films Limited

₹ 490

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

₹ 490

About

About

About

About