Company With 245% Return
Today we are going to talk about a very boring business that has given the most interesting returns this year; it has given a whopping 245% in a year and 2766.64% in 3 years. The company’s name is Tinna Rubber and Infra. It is a tyre recycling company.
The company recycles waste or end-of-life tyres and turns them into useful products. Their model may sound very boring to you, but it is growing rapidly, and with people trying to be more sustainable for a better environment, it has a promising future.
With limited resources, they have achieved global recognition. The global focus is shifting to reusing, recycling, etc., so this holds a promising future for the company, and one can expect this company to show results like this in the future as well.
Every year, tons of end-of-life tires go to waste. This recycling has led to giving this waste a new life.
CE investor Dolly Khanna, who is very famous for her investments, has reduced their share to 1% from 1.6% in the past year.
The company is diversified into manufacturing and exporting thermoplastic rubber compounds (TRC). They have also launched a new unit in Mumbai and commenced their operations in July. Currently, the company is more focused on the production and export of leather footwear.
They export to major countries like the U.K., Canada, Italy, Australia, etc. Some of the major companies they export to are British Bata, Shoe Fayre, CICIL Brothers, R. Hannah Co., GUS, etc.
Tinna Rubber and Infrastructure: Financials
FY Year: | FY2023 | FY2022 | FY2021 | FY2020 |
Revenue: | 295 cr | 229 cr | 30 cr | 5 cr |
Net Profit: | 22 cr | 17 cr | 0.14 cr | 5 cr |
ROE: | 22.71% | 21.82% | 0.2% | 7.25% |
ROCE: | 28.10% | 27.41% | 11.65% | 3.95% |
D/E: | 0.61 | 0.92 | 0.89 | 1.01 |
With the company’s financial data, we can see that there’s been significant growth. Analyzing the numbers for four years, we can see a compound annual growth rate of 33.8% in revenue
What the company’s future holds
Company has acquired an overseas facility in Oman
The company has grabbed an astonishing contract worth ₹107 crore from Indian Oil Company for 2 years, and they are going to be supplying clogged rubber modifiers to the company.
The company has expanded significantly in the last fiscal year; they are aiming to process 60000 metric tons of used passenger car tyres. also, the company has recently started to make thermometers and plastic elastomers out of waste.
Conclusion
All of these factors show the potential of the company and promise sustained growth and valuation in the future
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