Guess its better than using the money generated from the business clandestinely also not borrowing money and pay for the interest.
Any other Opinions??
If you go through the past several concalls, management has always indicated that currently they will only acquire music if a good opportunity presents itself. They wonât overpay. This is a strong stance they have re-iterated. They did acquire music for PS1 and PS2 tamil movies at 10-20 cr because they thought it was worth it.
With regards to dividends and buybacks, the music business is a cash cow and they probably do not want to keep too much cash hand to show that they are shareholder friendly.
As disclosed before I am invested from lower levels. I would look to add if there is a correction.
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Tips Films is trading at 6-7 p/e of Fy25 or FY26. Negen capital had done some calculation at the time of demerger. My take is that there is possibility of exponential returns in Tips Films. Management has always talked of 30% growth for Tips Films as well.
As for Tips Industries, getting 30%+ returns per year feels difficult.
They demerged both the business as the film division was diluting returns and margins of the company. The film division will need continuous infusion of capital to grow. Film business is something very dear to the promoters. So it makes sense for them to reduce their stake to provide the films business with the necessary capital. That/s something that wont affect the shareholders of Tips Industries. And being in the film business will compliment their music business when it comes to acquiring new music.
Inorganic acquisitions at fair price is going to be really difficult as even the smaller players would have realised the value of catalogues. By now they would have understand how easy it is to monetise the content. Saregama is also been looking for acquisitions for some time unsuccessfully. Going forward,as @Abhay_Srivastava has said its going to be alpha of the the music picking thats going to make the difference. Right music at the right price.
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price/sale for TIPS 21 viz a via Saregama 10. much highly valued than the expensive saregama,
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SAREGAMA is a Mess, regardless of its CEO trying to act/sound smart
Apart from MUSIC,
it (SAREGAMA) also has its plate full with
- CARAVAN
- FILMS AND OTT
- PUBLICATION Business (not sure if it has been demerged)
- Stake in POCKET ACES
- Manage Live Shows in Foreign Countries
- Doesnât write of expenses in the Quarter itself
- Have to take care of Royalty payouts
No wonder the results has been flat for SAREGAMA in last one year.
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Good result with 27% yoy revenue growth which is the key metric. PAT margins should compress at some point due to content acquisitions
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Donât miss FIIâs and DIIâs increasing their share
where did you find this information? Screener does not show any FII and DII holding at Dec23 and the names appearing in Public category do not seem like DII, as per my knowledge
I think they are referring to small increase in holding inching towards 1%.
This is a little surprising meaning that promoter offloaded the stake to public via HFT firms maybe, purely speculating.
yes seems so. All the promoter selling seems to be absorbed by the public category with negligible increase in DII and FII holding which are anyway below 1% and no names appear there!
Observed a big change in Promoter Holding this Quarter. From 75% to 68%.
Anyone having Idea about this?
The promoter mentioned in last con call that they needed money for their film business and hence sold the stake.
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Thats an interesting point. Their stake in Tips Films is 75% which is max possible. So are they thinking of doing a preferential issue?
While I can see this in block deals, why its not reported on insider trading page?
30% CAGR in earnings or stock price?
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30% cagr in topline and bottomline
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Good concall, transcript is out.
One key thing to note is that Tips does not have a deal with meta yet and promoter mentioned that you might hear some good news soon. Actually they are always hopeful so its just an optionality. Another important thing to note is that Tips does not have a minimum guarantee (MG) model with any platform like Saregama (used to?) had. I think I read in Saregama concall that they have decided to drop the model to support the platformâs transition to paid subscription only. So Saregama is supposed to have some near term dips due to MG going away but Tips shouldnât get affected.
Promoter reiterated 30% guidance for both topline and bottomline. Content cost might be less this year next year they would try to be aggressive.
Overall PAT growth to be 40% for FY24 but might be more if they are not able to acquire music for one more movie in Q4.
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