AI Summary
✦ ClarthaTips Music is an Indian music-rights company acquiring and exploiting audiovisual content domestically and internationally. Digital monetisation of its music library drives core revenue, while live events and concerts provide additional income. Revenue grew 20.9% year-on-year, and profit rose 30.1%, with improving margins despite no major reported recent development. ROE is unavailable, while debt-to-equity of 1.96 indicates high leverage that can amplify reported returns and financial risk. Improving margins and faster profit growth support earnings quality, but leverage remains a key constraint. At 38.5x earnings, the shares appear rich relative to the company’s growth profile. The principal open question is whether digital catalogue monetisation can sustain current growth without increasing leverage-related pressure.
Valuation Metrics
Trading 16.9% above historical median. Valuation is declining — currently in the strongly overvalued zone (z-score: +0.79). Confidence: 75%.
Live forward EPS implies next-12-month EPS of ₹22.97. Applying the stock's normalized valuation corridor produces a fair range of ₹596.07 to ₹872.17, with base value near ₹758.01 (+13.6% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹22.97
Forward P/E
29.1x
Base Fair Value
₹758.01
Fair Range
₹596.07 - ₹872.17
Upside To Base
+13.6%
Estimate Source
Live forward EPS
Growth Estimate
-4.7%
5Y Average
23.50
Current
38.56
Overvalued
37.97
Undervalued
25.95
5Y Average
13.20
Current
21.66
Overvalued
19.78
Undervalued
5.53
5Y Average
18.65
Current
30.61
Overvalued
27.96
Undervalued
7.82
Peers & Comparison
Sector: Communication Services · Theme: Movies & TV Serials
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
SAREGAMA INDIA LIMITED SAREGAMAMovies & TV Serials | +27.5% | 21.3% | 45.8x Fair | 0% vs avg | +10.7% |
TIPS MUSIC LIMITED trades at a discount (38.5x vs peer avg 45.8x), suggesting potential undervaluation relative to the Movies & Tv Serials cohort. Peers include SAREGAMA INDIA LIMITED — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹104 CrMar 2026Latest net profit
₹60 CrMar 2026Latest EPS
₹4.62Mar 2026Net margin
73.4%Mar 2026Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Mar 2026
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 52.02 | 52.62 | 60.87 | 64.83 | 63.26 | 73.92 | 80.61 | 77.67 | 78.49 | 88.07 | 89.22 | 94.29 | 104 |
| Expenses | 25.66 | 17.6 | 11.05 | 21.41 | 33.09 | 19.55 | 21.15 | 22.08 | 41.21 | 31.55 | 21.38 | 18.79 | 27.01 |
| Operating Profit | 25.99 | 34.45 | 49.37 | 42.98 | 29.67 | 53.82 | 58.91 | 55.04 | 36.73 | 55.9 | 67.22 | 74.85 | 76.31 |
| OPM % | 49.96% | 65.47% | 81.11% | 66.3% | 46.9% | 72.81% | 73.08% | 70.86% | 46.8% | 63.47% | 75.34% | 79.38% | 73.42% |
| Other Income | 1.93 | 2.02 | 3.6 | 3.44 | 5.33 | 4.59 | 5.59 | 4.15 | 4.66 | 5.69 | 4.51 | 4.8 | 3.78 |
| Interest | 0.07 | 0.12 | 0.07 | 0.07 | 0.08 | 0.09 | 0.08 | 0.07 | 0.07 | 0.06 | 0.06 | 0.05 | 0.04 |
| Depreciation | 0.37 | 0.57 | 0.45 | 0.44 | 0.5 | 0.55 | 0.55 | 0.55 | 0.55 | 0.62 | 0.62 | 0.65 | 0.61 |
| Profit before tax | 27.85 | 36.35 | 52.9 | 46.35 | 34.92 | 58.32 | 64.42 | 59.12 | 41.32 | 61.53 | 71.67 | 79.6 | 80.05 |
| Tax % | 25.82% | 25.45% | 25.05% | 25.24% | 26.23% | 25.31% | 25.24% | 25.37% | 25.92% | 25.5% | 25.78% | 25.09% | 25.6% |
| Net Profit | 20.66 | 27.1 | 39.65 | 34.65 | 25.76 | 43.56 | 48.16 | 44.12 | 30.61 | 45.84 | 53.19 | 59.63 | 59.56 |
| EPS in Rs | 1.42 | 2.11 | 3.09 | 2.70 | 2.01 | 3.40 | 3.77 | 3.46 | 2.39 | 3.59 | 4.16 | 4.59 | 4.62 |
All values in Rs. Crore unless otherwise stated. Source: CMIE Prowess, Quarterly Interim Standalone.