Published: 05th Sep 2024
By: Value Research
Tolins Tyres makes tyres and tread rubber. Tread rubber, which makes contact with the road surface, generated 76 per cent of the company’s FY24 revenue. Under this segment, it majorly offers retreaded rubber, which is a replacement of a tyre's outermost worn rubber with a new one.
Total IPO size (Rs cr) 230 Offer for sale (Rs cr) 30 Fresh issue (Rs cr) 200 Price band (Rs) 215-226 Subscription dates September 9-11, 2024 Purpose of issue To repay loans and fund working capital needs
893 Net worth (Rs cr) 301 Promoter holding (%) 68.5 Price/earnings ratio (P/E) 34.3 Price/book ratio (P/B) 3M-cap (Rs cr)
2Y CAGR (%) FY24 FY23 FY22 Revenue (Rs cr) 41.6 227 118 113 EBIT (Rs cr) 222.7 43 11 4 PAT (Rs cr) 542 26 5 1 Net worth (Rs cr) 204.7 101 19 11 Total Debt 27 79 47 49Key financials (Rs cr)
EBIT is earnings before tax and interest PAT is profit after tax
3Y average FY24 FY23 FY22 ROE (%) 19.1 25.9 25.7 5.8 ROCE (%) 19.6 35 16.9 6.9 EBIT margin (%) 10.5 18.9 9 3.6 Debt-to-equity 0.8 2.4 4.5Ratios
ROE is return on equity ROCE is return on capital employed
The company is working towards increasing its capacity utilisation from 33% to 75%. It has recently made acquisitions, expanding its manufacturing capacity, which is expected to generate operating leverage.
The company’s average operating margins were 10.5 per cent during FY22-24, the highest of its industry peers.
The company primarily operates as a B2B player, which is why its client concentration is uncomfortably high. To read the possible impact of this, head on to our full story that lays out a detailed analysis. Read it from the link below.