Tolins offers quality at a discount, but raw material prices weigh
Get link
Facebook
X
Pinterest
Email
Other Apps
[hfe_template id='11223']
[ad_1]
ET Intelligence Group: Tolins Tyres, a manufacturer of tread rubber and tyres, is aiming to raise ₹230 crore through an initial public offering. The IPO will consist of a fresh issue of shares worth ₹200 crore, which will be used for loan repayment and to enhance working capital, while the rest will come from an offer for sale by its promoters.
The company's go-to-market strategy involves utilising dealers and distributors (B2C), focusing on fleet operators by offering quality comparable with leading tyre brands at a significant discount. In contrast, its competitors have concentrated on state transportation businesses (B2G), compressing net margins.
Tolins Tyres operates a plant in the UAE - the only tread rubber plant in the region - which gives it a broad overseas market. The company is entitled to issue recycle certificates for tyres, which would be an incremental income with no expense. Given these factors, long-term investors may find the company's IPO appealing.
ETMarkets.com
Business Model: Tolins Tyres, established in 2003, is a leading manufacturer of tread rubber - a cost-effective alternative to new tyres - with approximately 1,003 stock-keeping units (SKUs). The company produces a wide range of tyres for light commercial vehicles, motorcycles, three-wheelers, and off-road vehicles. It operates three plants - two in Kerala and one in the UAE - with a combined capacity of 1.51 million tyres and 12,486 tonnes of tread rubber. About 75% of revenue comes from tread rubber and the rest from tyres.Financials: From FY22 to FY24, Tolins' revenue grew 41% annually to touch ₹227 crore, while Ebitda rose to ₹46.4 crore from ₹6.1 crore, with an Ebitda margin of 20%. Net profit grew to ₹26 crore in FY24 from ₹4.9 crore in FY23. Tolins' return on equity of 25.87% is superior to its peers.
Risks: Raw material accounts for 96% of the company's total purchases, and natural rubber prices have been quite volatile in recent months.
Valuation: At the higher end of the price band, the company is seeking a price-earnings multiple of 34 times its FY24 earnings. In comparison, competitors such as Indag Rubber, Vamshi Rubber and GRP are trading at multiples ranging from 33 to 67 times.
[hfe_template id='11223']
[ad_1]
Volatility in Indian equity markets has surged sharply over the past month, with the India VIX nearly doubling as geopolitical tensions and global uncertainty triggered aggressive selling in equities. India VIX, often referred to as the market’s fear gauge, has jumped close to 100% over the past month, reflecting growing nervousness among investors. The spike has coincided with a sharp correction in the broader market, with the Nifty 50 declining about 8% during the same period. The escalation of tensions involving the United States, Israel and Iran has intensified market anxiety in recent days, pushing crude oil prices sharply higher and triggering a global risk-off sentiment. However, analysts note that volatility had already been building even before the conflict escalated, reflecting broader concerns around global growth, foreign capital outflows and stretched valuations in equities. The heightened uncertainty translated into a sharp ...
[hfe_template id='11223']
[ad_1]
Benchmark indices Sensex and Nifty ended the week on a bearish note, closing over a percent lower each as a deepening selloff in IT stocks rattled investor sentiment amid mounting fears of AI-led disruption. Further, stronger-than-expected jobs data for January dampened hopes of a US Fed interest rate cut. Here are 7 factors that could decide market action in the coming week: 1.) Infosys, Wipro ADRs rebound - After a brutal two-day selloff that saw Infosys and Wipro ADRs plunge as much as 14.5%, Friday’s session brought a much-needed breather. Bargain hunting kicked in at lower levels, sparking a sharp rebound as Infosys climbed 3% while Wipro gained 4%—helping both stocks close the week on a far stronger note. International brokerage firm JP Morgan has a message for panic-stricken investors: IT services firms are the indispensable "plumbers of the tech world" and their dividend yields have now hit levels last seen only during ...
[hfe_template id='11223']
[ad_1]
Waaree Energies shares will be in focus on Wednesday after the solar panel maker reported a strong Q4 performance, with net profit rising 34.1% year-on-year (YoY) to Rs 618.9 crore for the quarter ended March 31, 2025. In the same quarter last year, the company had reported a profit of Rs 461.5 crore. Revenue from operations jumped 36.4% to Rs 4,003.9 crore, up from Rs 2,935.8 crore in the year-ago period, according to the company’s regulatory filing. EBITDA more than doubled to Rs 922.6 crore in Q4 FY25, up 120.6% from Rs 418.3 crore in the same quarter last year. The EBITDA margin improved to 23% from 14.3% a year ago. The company produced 2.06 GW of solar modules in the fourth quarter, up from 1.35 GW in the same period last year. For the full year, module production reached 7.13 GW, compared to 4.77 GW in FY24. For the full financial year FY25, revenue rose 27.62% YoY to Rs 14,846.06 crore. Profit after tax more than doubled to Rs 1,9...
[hfe_template id='11223']
[ad_1]
ETMarkets.com
Comments
Post a Comment