Today we are discussing about the small-cap rubber company has a market cap of Rs 2,025, but in the last 5 years, the company has delivered 11,576% returns in the last 5 years. If you had invested 1 lakh Rs five years ago, then currently your 1 month turned into 1 crore 11 lakh approximately. This rubber company’s net profit has increased by 59% year-on-year.
About the company
This multibagger small-cap rubber company is Tinna Rubber & Infrastructure Limited. It was founded in 1987 under the management of Mr. Bhupinder Kumar Sekhri. Tinna Rubber converts the waste tires into value-added products by providing end solutions for end-of-life tires. Tyres are non-biodegradable, while Tinna rubber with advanced recycling technologies deconstructed 100% into new raw materials. These raw materials go into the making of new tires and various rubber products.
Financials
Market Cap– 2,025 Crore
P/E Ratio – 37.41
Industry P/E– 54.99
Debt to Equity – 0.76
Return on Equity – 36.25%
Dividend Yield – 0.42%
52 Week Low/High: 516/2179
Shareholding Pattern
Promoter of Tinna Rubber has a 71.94% holding in Sep’24; foreign institutions hold 1.25%, increased by 0.43% YoY; domestic institutions hold 0.05%, increased by 0.05% YoY; retail investors hold 15.87% in Q2 FY 25, increased by 2.11% YoY. The total number of shareholders has increased by 88.62% year-on-year from 27,842 to 34,750.
Q2 FY25 Result Update
Tinna Rubber reported a strong second quarter of FY25, showing promising results that can make the investors happy.
- Total sales reported Rs 117 crore in FY25 as against Rs 79.69 crore in the same quarter FY24.
- Net profit increased to Rs 19.16 crore in FY25 as against Rs 7.62 crore in FY23, increasing by 59.18%.
- Operating profit margin is reported as Rs 19.16, increased by 22.51%.
- Earnings per share (EPS) is reported at 6.17.
- The number of shareholders increased by 88.62% YoY from 27,842 to 34,750.
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Stock performance
Tinna Rubber has given multibagger returns to its investors in the past. Tinna Rubber has delivered a -30% loss in the last 3 months, while +16.35% in the last 6 months, +128% in the last year, +362% in the last 2 years, +1718% in the last 3 years, and +11593% returns in the last five years.
| Time | Returns |
|---|---|
| 6 Months | +16.35% |
| 1 Year | +128.37% |
| 2 Year | +362.45% |
| 3 Year | +1718.29% |
| 5 Year | +11593.87% |
As the chemical sector is outperforming these days, there may be an opportunity to invest in Tinna Rubber. Please take advice from your financial advisor before investing in Tinna Rubber.
Experts on industry
According to Industry experts ” Natural rubber prices have fluctuated dramatically, with a 13 percent decrease followed by a 55 percent increase”. Tyre Manufacturers couldn’t pass these costs on quickly enough, squeezing margins and creating supply chain disruptions. India’s rubber demand full-filling through imports.
“India’s tyre industry remains heavily reliant on imported rubber, and imports is subject to high tariff”. India’s leading tyre manufacturers are likely to hike prices for a third consecutive quarter, aiming to offset the persistent rise in the cost of raw materials, particularly natural rubber.
Disclaimer: I am not a SEBI-registered investment adviser or research analyst. The information shared is only for educational purposes. This is not investment advice.