Tips Industries Limited

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. The co has a large music library with a collection of over 30,000 songs across various genres and regional languages. The co has produced and released around 40 Hindi films in the past 20 years and also sells the theatrical, satellite, and various other rights to distributors, broadcasters, etc. The company earns 100% of its revenue from Lincense fees. 75% of the revenue is from digital platforms, wherein 45-50% is through Youtube, and remaining 25-30% through other digital platforms. The remaining 25% is generated through TV and public performances. The co. owns 2 factories that use internationally recognized, state-of-the-art machines specially imported from Italy and Denmark, such as Otari, Lyrec, and Tapematics. These factories incorporate digital bin mastering facilities, work on just-in-time inventory management systems and use in-house logistics facilities to deliver more than 1,50,000 cassettes per day to the Indian market. The co also has offices located in the United States, Dubai, and England where it operates via its licenses. In FY22, the Co signed a music licensing deal with YouTube. As part of this deal, Tips will license its large catalog to the YouTube platform allowing the huge Indian diaspora across the world to create content inspired by its ever-popular and superhit music library in diverse Indian languages like Hindi, Punjabi, Bhojpuri, Haryanvi, Marathi, Gujarati, amongst many others. The company’s vision is to be amongst the top 3 music companies in India by creating, acquiring and delivering quality music having high catalog value. The financials of the company is good, RoNW is 64% and at CMP its looks fully priced. Price difference is around 20% and acceptance ratio as per current share holding for retail will be within 1%, so final buyback ration may be within 10% and one may get around 1-3% on investment. So we give NEUTRAL rating to this buyback, those who are currently holding may participate in buyback.

• 1 Mr. Rajesh Pirogiwal
• 2 Mrs. Sunita Pirogiwal
• 3 Miss Tanvi Pirogiwal