Mehabe score: 7 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
Tina Rubber & Infrastructure Ltd is primarily engaged in conversion of End of life tyres (ELT) into crumb rubber and steel wires obtained in the process.[1] Site:TINNARUBR Main Symbol:TINNARUBR
Stock trades at 263.0, above its 50dma 23.38. It also trades above its 200dma 19.22. The stock remains bullish on techicals
The 52 week high is at 44.20 and the 52week low is at 11.56
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
Weakness
– Stock is trading at 2.98 times its book value
-The company has delivered a poor sales growth of -24.49% over past five years.
– has a low return on equity of -2.31% for last 3 years.
-Contingent liabilities of Rs.93.89 Cr.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 43.3x. Adani Enterp. trades at the industry’s max P/E of 174.87x. TINNARUBR trades at a P/E of 17.3x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 8.0. TINNARUBR has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 8.5%. The max 1- month return was given by Tinna Rubber: a return of 60.01 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 69.19 cr compared to Rs 37.75 cr for period ended Dec 2020, a rise of 83.3% .
vis-vis 5.19 for period ended Dec 2020 .
Operating Margins contracted -22.0 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 9.36 cr for period ended Dec 2021 and operating profit margin at 13.5 % for same period.
The EPS for quarter ended Dec 2021 is Rs 4.8 compared to Rs 4.8 for previous quarter ended Sep 2021 and Rs 1.76 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 218.0 cr for period ended TTM vis-vis sales of Rs 130.0 cr for the period ended Mar 2021, a healthy growth of 40.4%. The 3 year sales cagr stood at 18.8%.
Operating margins expanded to 15.0% for period ended TTM vis-vis 13.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 13.0 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 597% on a 1 Year basis vis-vis a return of 82% over the last 3 Years. – The compounded sales growth on a TTM bassis is 95% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is 525% vis-vis a compounded profit growth of 25% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 0.64% vis-vis 0.59% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 25.22% vis-vis 25.27% for Sep 2021
Conclusion
– has reduced debt.
– is expected to give good quarter – Stock is trading at 2.98 times its book value
-The company has delivered a poor sales growth of -24.49% over past five years.
– has a low return on equity of -2.31% for last 3 years.
-Contingent liabilities of Rs.93.89 Cr.
-‘s cost of borrowing seems high
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 23.38 and is trading at 263.0, thus bullish price action wise.
