Tinna Rubber & Infrastructure
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Tinna Rubber & Infrastructure's recent management commentary highlights a strategic pivot towards high-value material recovery and operational efficiencies, which are expected to drive revenue growth and margin expansion. The company's Vision 2029 roadmap emphasizes capacity expansion and diversification into international markets, positioning it well to capitalize on the growing demand for sustainable materials. Vista's financial outlook reflects stable revenue growth and improving margins, supported by management's confidence in sustaining EBITDA margins of 18-20%. However, potential headwinds such as commodity price volatility and geopolitical tensions in the Middle East could impact supply chains and project timelines. Overall, Tinna Rubber is well-positioned to leverage the sunrise growth phase of the auto ancillaries sector, driven by electric vehicle adoption and government incentives. Over the next 12-24 months, key opportunities include expanding its footprint in high-margin segments and enhancing operational efficiencies, while watchpoints include monitoring commodity price fluctuations and geopolitical risks that may affect margins and growth trajectories
Why We Like This Stock
- Management's focus on high-value material recovery and operational efficiencies is expected to drive revenue growth and margin expansion
- The Vision 2029 strategy emphasizes capacity expansion and diversification into international markets, enhancing long-term growth potential
- The auto ancillaries sector's sunrise growth phase, driven by electric vehicle adoption, presents significant opportunities for Tinna Rubber
Things To Watch Out For
- Commodity price volatility poses a risk to operating margins and profitability
- Geopolitical tensions in the Middle East could disrupt supply chains and delay project timelines
- Regulatory inconsistencies in waste management may create operational challenges in the tyre recycling sector
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 363 | 505 | 546 | 552 | 610 |
| Profit Before Tax (Cr.) | 53 | 62 | 72 | 80 | 87 |
| PBT Margin | 14.6% | 12.3% | 13.2% | 14.5% | 14.2% |
| Net Profit (Cr.) | 40 | 49 | 56 | 62 | 67 |
| Earnings Per Share | 22.3 | 27.1 | 31.1 | 34.4 | 37.1 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Tinna Rubber and Infrastructure Limited manufactures and supplies rubber products in India and internationally. It offers recycled rubber materials, including crumb, micronized, and coated rubber powders, as well as high tensile reclaim rubber and crumb rubber modifier; bitumen products, such as crumb rubber modified bitumen, polymer modified bitumen, and bitumen emulsion; and steel materials comprising steel abrasives and ceramic foam filters. The company also provides recycled polymers products, which include acrylonitrile butadiene styrene, polypropylene copolymer, high impact polystyrene, and low-density polyethylene; and masterbatches, such as black, white, filler, color, additive, mono colour, silicone, and biodegradable masterbatches, as well as heat shrinkable compounds. In addition, it engages in recycling and converting waste tyres into downstream value-added products. The company exports its products. Its products are used in roads, gym tiles, crumb rubber infills, automotive parts, rubber mats, conveyor belts, tyres, PCMB, and steel applications. The company was formerly known as Tinna Overseas Limited and changed its name to Tinna Rubber and Infrastructure Limited in December 2012. Tinna Rubber and Infrastructure Limited was founded in 1977 and is based in New Delhi, India.