Tips Music Ltd. (TIPSMUSIC.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+2.2%

₹799.98

vs ₹783.05 price

Levered DCF

₹625.68

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

74.4

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	30.37×	50.1×	47.48×	24.71×	41.33×	13.66×	11.32×	30.05×
P/B	25.32×	39.82×	33.63×	13.89×	26.06×	5.86×	1.59×	1.22×
P/S	17.53×	26.85×	24.99×	10.13×	19.68×	6.56×	1.41×	0.42×
EV / EBITDA	22.33×	36.8×	34.67×	17.57×	29.64×	9.83×	9.9×	11.89×
Gross margin	88.2%	78.1%	80.4%	97.9%	99.5%	79.0%	58.9%	16.4%
Operating margin	72.8%	66.7%	66.6%	80.6%	80.5%	63.0%	10.2%	12.1%
Net margin	57.7%	53.6%	52.6%	41.0%	47.6%	48.0%	12.5%	1.4%
Current ratio	3.12×	2.75×	3.3×	3.09×	11.74×	12.76×	12.78×	3.37×
Debt / equity	0.02×	0.02×	0.03×	0.03×	0.04×	0.04×	0.02×	0.12×
Interest coverage	1,367.84×	681.67×	461.99×	526.07×	1,500.02×	2,729.92×	32.88×	0×
Dividend yield	2.5%	1.1%	1.4%	0.1%	0.1%	0.3%	1.1%	1.7%
Payout ratio	76.7%	53.7%	65.6%	3.4%	4.0%	4.5%	12.6%	50.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	83.4%	79.5%	70.8%	56.2%	63.0%	42.9%	14.1%	4.0%
Return on invested capital	76.2%	66.8%	46.8%	77.8%	58.4%	29.9%	8.6%	11.6%
Return on assets	59.9%	49.1%	37.5%	39.7%	44.0%	29.0%	12.6%	3.0%
Free cash flow yield	2.9%	1.5%	3.8%	4.2%	1.1%	7.2%	23.4%	27.5%
Earnings yield	3.3%	2.0%	2.1%	4.0%	2.4%	7.3%	8.9%	3.3%
Enterprise value	₹65.8B	₹83.1B	₹59.9B	₹18.8B	₹26.5B	₹5.7B	₹1B	₹858.3M
Net debt / EBITDA	-0.01×	-0.17×	-0.25×	-0.07×	-0.2×	-0.48×	-2.29×	-0.03×
Cash conversion cycle (days)	-75	-63	-64	-1,435	-2,332	-59	31	56