What’s playing at Tips?

Why read this story?

Editor's note: In its over 40 years of existence, music label and film production, promotion and distribution company Tips Industries’s profits have largely remained in single digits. But in 2020-21, the company’s net profit jumped to Rs 59 crore and, in the first six months of the current financial year, it has already made Rs 47 crore. Again, despite being listed for over two decades, Tips has never been valued at more than Rs 200 crore; in fact, as recently as 18 months ago, it was at Rs 112 crore. Today, it is valued at over Rs 2,734 crore, with its shares going from a little over Rs 100 in May 2020 to Rs 2,114 as of 5 January. Those numbers look spectacular considering how few analysts cover Tips and the almost total absence of a big institution among its investors. The company’s stock sees poor trading volumes, averaging just a few thousand shares a day. The market’s darling was always its bigger competitor, Saregama India, which makes four times as much revenue and twice as much profit as Tips. In the …