InvestorQ : What is the reason for the rally in the stock of Tips Industries in recent days?
Archita Jajjoo made post

What is the reason for the rally in the stock of Tips Industries in recent days?

Niti Shenoi answered.
12 months ago

Shares of Tips Industries touched a level of Rs.368, which is the highest price the stock has touched in the last 20 years. It recently announced plans to demerge its film business. The last time the stock had traded at a higher level was in December 2000. The final decision on the demerger of the film business will be taken at the board meeting next week.

It may be recollected that Tips Industries is engaged in production and distribution of films as well as into leveraging its digital audio content library in India and in global markets where there is an appetite for Indian content. Interestingly, Tips Industries is also a leading producer of Punjabi films in the country, which happens to be a lucrative market for Tips.

Tips is predominantly a content ownership company. Over the last few months, the company has been in continuous talks with players in the telecom, social media and OTT space for content sharing. Tips Industries has also signed a global deal with Facebook to license its music for videos and social experiences over Facebook and Instagram.

Tips has plans to to produce at least 2 to 3 films every year with the objective of providing wholesome entertainment for the entire family. Tips top management is betting heavily on its music business to continue to deliver consistent growth and revenues. Even the music library of Tips is available for streaming and downloading across digital platforms.

The positive traction in the business is evident from the fact that music revenues for FY 2019-20 stood at Rs 97.92 crore nearly 50 % higher as compared to Rs 66.74 crore reported in the previous fiscal.