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Last Updated on: 15 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532375 | NSE: TIPSINDLTD

Tips Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: September 27, 2024, 6:15 pm

Market Cap 8,778 Cr.
Current Price 685
High / Low785/293
Stock P/E61.1
Book Value 14.0
Dividend Yield0.88 %
ROCE104 %
ROE79.4 %
Face Value 1.00
PEG Ratio2.24

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Tips Industries Ltd

Competitors of Tips Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hathway Bhawani Cabletel & Datacom Ltd 16.5 Cr. 20.423.7/16.2 1.990.00 %2.26 %2.26 % 10.0
G V Films Ltd 80.5 Cr. 0.881.20/0.46 0.220.00 %2.27 %2.08 % 1.00
Encash Entertainment Ltd 11.3 Cr. 29.029.0/29.0 21.80.00 %3.81 %3.93 % 10.0
Diksat Transworld Ltd 254 Cr. 145149/126245 14.40.00 %3.36 %4.21 % 10.0
Cyber Media (India) Ltd 44.3 Cr. 28.044.0/16.013.6 2.950.00 %45.5 %% 10.0
Industry Average3,714.17 Cr158.34220.7455.890.12%36.43%10.87%5.94

All Competitor Stocks of Tips Industries Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales28294434345051525361656374
Expenses9111614122225261811213320
Operating Profit19182820222726263550433054
OPM %66%61%63%60%66%55%51%51%67%82%67%48%74%
Other Income1111111224355
Interest0000000000000
Depreciation0000000010001
Profit before tax19182821232827283653463558
Tax %25%39%24%25%25%25%25%34%25%25%25%26%25%
Net Profit15112216172120182740352644
EPS in Rs1.120.871.661.231.321.611.561.432.113.092.702.013.41

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1381041026847472039191136187242263
Expenses11810887535038197933549858385
Operating Profit20-51515-3106-25586102158178
OPM %14%-5%15%22%-7%20%3%-2%61%64%55%66%68%
Other Income12131924185351417
Interest51112131072000000
Depreciation2222111111122
Profit before tax15-1634447145989106171192
Tax %20%5%18%20%31%22%61%21%27%27%28%25%
Net Profit12-163333311436577127144
EPS in Rs0.76-1.060.180.200.210.220.200.793.354.985.969.9011.21
Dividend Payout %28%-9%57%50%48%46%50%19%4%4%8%61%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-233.33%118.75%0.00%0.00%0.00%0.00%266.67%290.91%51.16%18.46%64.94%
Change in YoY Net Profit Growth (%)0.00%352.08%-118.75%0.00%0.00%0.00%266.67%24.24%-239.75%-32.70%46.47%

Tips Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

No data available for the compounded sales growth chart.

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital151515151414141413131313
Reserves72545555545556668889123167
Borrowings99133106896436820045
Other Liabilities2938415397158494453154
Total Liabilities2162401801741352029590150147193339
Fixed Assets313028262523151515758
CWIP000000000000
Investments000000061851391
Other Assets1842111531481111797970117135174240
Total Assets2162401801741352029590150147193339

Reserves and Borrowings Chart

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-79.00-138.00-91.00-74.00-67.00-26.00-2.00-4.0055.0086.0098.00153.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days231811724669197361484040
Inventory Days
Days Payable
Cash Conversion Cycle231811724669197361484040
Working Capital Days332477401534600305621272781366-44
ROCE %12%-2%8%10%10%9%8%18%64%86%87%104%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.98%74.98%74.98%74.98%74.98%74.98%75.00%75.00%75.00%68.92%63.86%64.16%
FIIs0.86%1.04%1.01%0.64%0.06%0.10%0.05%0.06%0.42%0.85%2.09%2.39%
DIIs0.00%0.00%0.03%0.00%0.00%0.00%0.00%0.00%0.57%0.91%8.17%6.72%
Public24.16%23.98%23.98%24.38%24.96%24.93%24.95%24.95%24.02%29.32%25.88%26.74%
No. of Shareholders12,44313,83419,69821,10620,04545,10125,98225,88629,97437,28857,20953,404

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Flexi Cap Fund2,991,1200.56122.13168,5392024-10-131674.73%
SBI Magnum Midcap Fund2,991,1210.6122.13168,5392024-10-131674.74%
SBI Long Term Advantage Fund - Series V596,9537.324.37168,5392024-10-13254.19%
SBI Long Term Advantage Fund - Series IV168,5393.096.88168,5392024-10-130%
Navi Flexi Cap Fund65,0000.992.65168,5392024-10-13-61.43%
SBI Magnum Children Benefit Plan38,8931.922.22168,5392024-10-13-76.92%
Navi Large & Midcap Fund - Regular Plan20,0000.260.82168,5392024-10-13-88.13%
Navi Aggressive Hybrid Fund12,0000.450.49168,5392024-10-13-92.88%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.0010.0010.0010.0010.00
Basic EPS (Rs.)9.9059.5849.7832.727.92
Diluted EPS (Rs.)9.9059.5849.7832.727.92
Cash EPS (Rs.)10.0660.6250.3534.148.74
Book Value[Excl.RevalReserv]/Share (Rs.)13.98106.0478.9678.0856.13
Book Value[Incl.RevalReserv]/Share (Rs.)13.98106.0478.9678.0856.13
Dividend / Share (Rs.)6.005.002.002.001.50
Revenue From Operations / Share (Rs.)18.81145.44104.5569.8163.55
PBDIT / Share (Rs.)13.4683.5268.9746.3111.05
PBIT / Share (Rs.)13.3182.4968.3945.6810.22
PBT / Share (Rs.)13.2882.2668.3345.6710.03
Net Profit / Share (Rs.)9.9059.5849.7833.527.92
PBDIT Margin (%)71.5457.4265.9666.3317.38
PBIT Margin (%)70.7356.7165.4165.4416.08
PBT Margin (%)70.5856.5665.3565.4115.77
Net Profit Margin (%)52.6340.9647.6148.0112.46
Return on Networth / Equity (%)70.8456.1963.0442.9214.10
Return on Capital Employeed (%)66.8875.9865.3042.3617.17
Return On Assets (%)37.5239.7143.9829.3212.57
Long Term Debt / Equity (X)0.000.000.000.000.02
Total Debt / Equity (X)0.000.000.000.000.02
Asset Turnover Ratio (%)0.901.100.910.750.98
Current Ratio (X)3.303.0911.7413.2312.78
Quick Ratio (X)3.303.0911.7413.2312.78
Dividend Payout Ratio (NP) (%)65.643.384.014.4712.62
Dividend Payout Ratio (CP) (%)64.643.333.974.3911.43
Earning Retention Ratio (%)34.3696.6295.9995.5387.38
Cash Earning Retention Ratio (%)35.3696.6796.0395.6188.57
Interest Coverage Ratio (X)495.97374.911228.562873.5355.82
Interest Coverage Ratio (Post Tax) (X)365.90268.46887.752080.8541.01
Enterprise Value (Cr.)5782.871760.702791.06576.37113.82
EV / Net Operating Revenue (X)23.949.4320.596.371.25
EV / EBITDA (X)33.4616.4231.219.607.20
MarketCap / Net Operating Revenue (X)24.489.9521.046.741.52
Retention Ratios (%)34.3596.6195.9895.5287.37
Price / BV (X)32.9513.6427.866.021.72
Price / Net Operating Revenue (X)24.489.9521.046.741.52
EarningsYield0.020.040.020.070.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Tips Industries Ltd as of October 15, 2024 is: ₹685.16

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 15, 2024, Tips Industries Ltd is Undervalued by 0.02% compared to the current share price ₹685.00

Intrinsic Value of Tips Industries Ltd as of October 15, 2024 is: ₹872.38

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 15, 2024, Tips Industries Ltd is Undervalued by 27.35% compared to the current share price ₹685.00

Last 5 Year EPS CAGR: 27.32%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 34.50%, which is a positive sign.
  2. The company has higher reserves (77.83 cr) compared to borrowings (45.50 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (132.23 cr) and profit (50.15 cr) over the years.
  1. The stock has a high average Working Capital Days of 267.83, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 43.33, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Tips Industries Ltd:
    1. Net Profit Margin: 52.63%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 66.88% (Industry Average ROCE: 36.43%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 70.84% (Industry Average ROE: 10.87%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 365.9
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 3.3
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 61.1 (Industry average Stock P/E: 220.74)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

No data availabale for About the Company
INDUSTRYADDRESSCONTACT
Industry not foundAddress not foundContact not found
Management Data not Available

FAQ

What is the latest fair value of Tips Industries Ltd?

The latest fair value of Tips Industries Ltd is ₹685.16.

What is the Market Cap of Tips Industries Ltd?

The Market Cap of Tips Industries Ltd is 8,778 Cr..

What is the current Stock Price of Tips Industries Ltd as on 13 October 2024?

The current stock price of Tips Industries Ltd as on 13 October 2024 is ₹685.

What is the High / Low of Tips Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Tips Industries Ltd stocks is 785/293.

What is the Stock P/E of Tips Industries Ltd?

The Stock P/E of Tips Industries Ltd is 61.1.

What is the Book Value of Tips Industries Ltd?

The Book Value of Tips Industries Ltd is 14.0.

What is the Dividend Yield of Tips Industries Ltd?

The Dividend Yield of Tips Industries Ltd is 0.88 %.

What is the ROCE of Tips Industries Ltd?

The ROCE of Tips Industries Ltd is 104 %.

What is the ROE of Tips Industries Ltd?

The ROE of Tips Industries Ltd is 79.4 %.

What is the Face Value of Tips Industries Ltd?

The Face Value of Tips Industries Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Tips Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE