~:Result Update: Tips Industries Ltd:~

BSE Code: 532375

CMP: Rs.30

Performance: Multi-bagger

Tips Industries operates in two segments--audio/video products and film distribution rights/production. Tips Industries Ltd has already produced 'Footpath', 'Ishq Vishk' and 'Fida' in the last few of years. It owns two factories which use internationally recognized, state of the art machines specially imported from Italy and Denmark, such as Otari, Lyrec and Tapematics. These factories incorporate digital bin mastering facilities, work on just-in-time inventory management system and use in-house logistics facilities to deliver more than 1,50,000 cassettes per day to the Indian market.

Net profit of Tips Industries Ltd rose 118.83% to Rs.4.88 crore in the quarter ended September 2011 (Q2FY12) as against Rs.2.23 crore during the previous quarter ended September 2010. Sales rose to Rs.16.17 crore in the quarter ended September 2011 as against Rs.11.87 crore during the previous quarter ended September 2010. The EPS of the company for Q2FY12 rose to Rs.3.06 as against Rs.1.34 in the same period previous year. The operating margin increased to 50.38% in Q2FY12,  as against 36.55% in the same period previous year. The net profit margin increased to 30.50% in Q2FY12 as against 19.29% in the same period previous year. This is on a very small equity of Rs.15.96  Cr. In FY12, the company could come up with a Net Sales of Rs.50 Cr and Net Profit of Rs.15 Cr. This naturally gives a target of Rs.70-80 for the scrip in the next 12 months time frame. Buy and Keep holding the scrip.