Mehabe score: 6 G Factor: 5 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 7.
Description
Tinna Rubber and Infrastructure is primarily engaged in the conversion of used Tyres into Crumb Rubber and Steel wires obtained in the process.Site:530475Main Symbol:TINNARUBR
Stock trades at 79.0, above its 50dma 66.84. It also trades above its 200dma 44.75. The stock remains bullish on techicals
The 52 week high is at 98.20 and the 52week low is at 13.70
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.02 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -24.49% over past five years.
– has a low return on equity of -2.32% for last 3 years.
-Contingent liabilities of Rs.78.86 Cr.
Competition
– The industry trades at a mean P/E of 49.5x. 3M India trades at the industry’s max P/E of 187.55x. 530475 trades at a P/E of x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. 530475 has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 5.7%. The max 1- month return was given by Rain Industries: a return of 34.47 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 49.32 cr compared to Rs 16.35 cr for period ended Jun 2020, a rise of 201.7%
Operating Profits reported at Rs 8.62 cr for period ended Jun 2021 vis-vis 0.04 for period ended Jun 2020 .
Operating Margins expanded 1723.3 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 4.29 compared to Rs 1.24 for previous quarter ended Mar 2021 and Rs -3.33 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 163.0 cr for period ended TTM vis-vis sales of Rs 130.0 cr for the period ended Mar 2021, a healthy growth of 20.2%. The 3 year sales cagr stood at 7.8%.
Operating margins expanded to 15.0% for period ended TTM vis-vis 12.0% for period ended Mar 2021, expansion of 300.0 bps.
Net Profit reported at Rs 6.0 cr for period ended TTM vis-vis sales of Rs -0.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 21.0 cr for period ended Mar 2021 vis-vis Rs 17.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 268% on a 1 Year basis vis-vis a return of 17% over the last 3 Years. – The compounded sales growth on a TTM bassis is 6% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is 97% vis-vis a compounded profit growth of 25% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.86% vis-vis 25.86% for Mar 2021
Conclusion
– Stock is trading at 1.02 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -24.49% over past five years.
– has a low return on equity of -2.32% for last 3 years.
-Contingent liabilities of Rs.78.86 Cr.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 66.84 and is trading at 79.0, thus bullish price action wise.
