Multibagger Small-cap stock engaged in the business of production and distribution of motion pictures and music in focus after its board of directors approved the buyback of equity shares of the company for a consideration not exceeding Rs. 37 Crores.
With a market capitalization of Rs. 6,456 Crores, the shares of Tips Industries Limited were trading at Rs. 502.75, down 2.14 percent from its previous day’s close price of Rs. 513.75.It has delivered multibagger returns of 235 percent in a year.
The board of directors of Tips Industries Limited has approved the proposal for the buyback of upto 5.95 lakh equity shares of the company at a price of Rs. 625 per equity share for a total consideration not exceeding Rs. 37.18 Crores.
The buyback of the equity shares of the company is gonna be performed through a tender offer, at a premium of 27 percent from its current market price of Rs. 492.
Tips Industries Limited is engaged in the business of production and distribution of motion pictures and the acquisition and exploitation of music rights.
Tips Industries Limited’s global music revenue breakup consists of Subscription audio streams of 48.3 percent, Physical rights of 19.2 percent, Ad-supported streams of 18.7 percent, Performance rights of 9.4 percent, download & other rights at 4.3 percent, and Synchronisation at 2.4 percent.
Its revenue from operations grew by 37.75 percent from Rs. 136 Crores in FY22 to Rs. 187 Crores in FY23, accompanied by increasing profits of Rs. 65 Crores to Rs. 77 Crores.
It has reported a return on equity (ROE) of 64 percent and a return on capital employed (ROCE) of 88 percent, it is making good returns on its equity and capital employed.
Written by: Bharath K.S
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