Shares of this rubber manufacturing company surged 11 percent after reporting a strong 182 percent year-on-year profit growth in the latest quarter. The sharp rise in earnings, driven by increased demand and operational efficiency, boosted investor confidence, leading to a notable rally in the stock.
Price Variation
On Thursday, shares of Rubfila International Ltd surged to an intra-day high of Rs.77.69, reflecting an 11 percent jump from its previous close of Rs.70.10. However, the stock later pared some gains and was trading at Rs.75.55 per share.
Earnings Report
Rubfila International Ltd saw a notable upswing in its stock price, driven by strong growth in both revenue and net profit, as reflected in its latest financial performance.
In Q3 FY25, the company reported revenue of Rs.139.56 crore, marking a 2.4 percent increase from Rs.136.34 crore in Q2 FY25. On a year-over-year basis, revenue surged 36 percent from Rs.103 crore in Q3 FY24, highlighting steady business expansion.
Net profit for the quarter witnessed a sharp 32 percent quarter-on-quarter rise to Rs.7.96 crore, compared to Rs.6.04 crore in the previous quarter. Additionally, on an annual basis, net profit saw an impressive 182 percent jump from Rs.2.82 crore in Q3 FY24, demonstrating robust earnings growth.
At present, Rubfila International Ltd is trading at a Price-to-Earnings ratio of 14.6, significantly below the industry average of 35.4, indicating a relatively lower valuation. In terms of return metrics, the company’s Return on Capital Employed (ROCE) stands at 12.5 percent, while its Return on Equity (ROE) is 9.72 percent, reflecting its financial efficiency.
Business Divisions
Rubfila International Ltd.’s latex rubber thread segment contributed Rs.118.9 crore, accounting for 82.04 percent of the revenue. The paper tissue segment generated Rs.21.73 crore, representing 15 percent, while the corrugated carton box segment brought in Rs.3.35 crore, making up 2.31 percent of the revenue.
Product Range
Rubfila International Ltd offers a diverse range of rubber thread products, including talc-coated, silicone-coated, and colored rubber threads designed for applications in the medical, food, and catheter industries.
The company manufactures rubber threads in round sections, with diameters ranging from 2.1mm (12 count) to 0.40mm (63 count). These threads are widely used in woven and knitted elastics and are available in new super white and black variants. The company has a carton division that produces 3/5/7 ply cartons with a capacity to convert 2000 tons of kraft paper per month
Domestic Presence
Rubfila International Ltd. operates its registered office and primary manufacturing facility in the New Industrial Development Area, Kanjikode, Palakkad, Kerala. Additionally, the company has a second factory unit located in Swaminathapuram, along Palani Main Road in Dindigul District, Tamil Nadu.
Written by – Siddesh S Raskar
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