YES Securities has initiated coverage on TIPS Music Ltd. with a ‘Buy’ rating, setting a target price of ₹1,050, indicating a potential upside of 21.8% from the current market price of ₹862. The brokerage’s optimistic outlook is based on several key factors:

  1. Favorable Industry Dynamics: The music industry is experiencing strong tailwinds, offering enhanced monetization opportunities for companies like TIPS Music.
  2. Diversified Music Catalogue: TIPS Music boasts a wide-ranging collection that appeals to various audience segments, strengthening its market position.
  3. Robust Digital Presence: The company’s active engagement across multiple digital platforms ensures extensive reach and accessibility for its content.
  4. Strategic Content Acquisition: A prudent approach to acquiring new content has bolstered TIPS Music’s portfolio, aligning with current market trends and consumer preferences.
  5. Enhanced Non-Digital Monetization: Improved strategies in non-digital segments have contributed to the company’s revenue growth and diversification.

YES Securities values TIPS Music at a Price-to-Earnings (P/E) ratio of 47x based on projected earnings per share (EPS) for September 2026, reinforcing its ‘Buy’ recommendation.

Strategic Partnership with TikTok

In a significant development, TIPS Music has entered into a direct partnership with TikTok, the global short-form video platform. This collaboration allows TikTok users worldwide to access TIPS Music’s extensive library, including Bollywood hits and regional tracks. The partnership aims to meet the growing global demand for Indian music and enhance cultural connections.

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