India’s waste management sector is rapidly evolving, driven by a growing population, urbanization, and increasing environmental awareness.
This industry plays a crucial role in addressing the challenges posed by the country’s significant waste generation, which amounts to approximately 62 million tonnes annually, with municipal solid waste (MSW) being a major component.
As urbanization continues and awareness of waste management issues grows, companies in this sector are well-positioned to benefit from increased demand for their services.
Listed below is one such waste management stock trading at a discount of 32 percent to keep on your radar:
Tinna Rubber & Infrastructure Ltd
Price Movement:
With a market capitalization of Rs. 2,552 crores, the shares of one of the largest recyclers of End of Life Tyres started Tuesday’s trading session on a lower note at Rs. 1,480 compared to its previous close of Rs. 1,492.15. During the trading session, the shares hit a high of Rs. 1,510, gaining around 2 percent and are currently trading day at Rs. 1,480 apiece.
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Financials:
Looking at the company’s financial performance, the revenue jumped by around 24 percent from Rs. 109.85 crores during the March quarter to Rs. 136.01 crores in the June quarter. In addition, the net profits surged by around 5 percent from Rs. 15.66 crores to Rs. 16.39 crores during the same period.
52-week High:
The company hit its 52-week or all-time high in June 2024 at Rs. 2,179.20 and, comparing the same with the current stock price prevailing in the market, there is a discount of approximately 32 percent.
Shareholding Pattern:
As per the latest shareholding pattern, the Promoters hold a 72.65 percent stake in the company, Foreign Institutional Investors (FII) hold a 0.79 percent stake, while Retail Investors hold a 26.22 percent stake in Tinna Rubber.
According to the BSE data, Ace Investor Mrs Dolly Khanna currently holds 1,76,289 equity shares equivalent to a 1.03 percent stake in this company. The current holding value of her investment amounts to Rs. 26.3 crores.
Management Guidance:
The company aims to achieve a revenue of Rs. 500 crores for FY25, which translates to approximately Rs. 120 crores per quarter. This goal aligns with a projected CAGR of 25 percent, with a longer-term target of Rs. 900 crores by FY27.
Further, Tinna Rubber has allocated approximately Rs. 48 crores for capital expenditure (CAPEX) in FY25.
Additionally, the company targets a 33 percent growth in profitability and plans to expand its capacity to 2.5 lakh metric tonnes per annum (MTPA) by FY27.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 31.52 percent and a return on capital employed (RoCE) of 31.55 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 10.49 percent.
Company profile:
Founded in 1977, Tinna Rubber & Infrastructure Limited is primarily engaged in the recycling of waste tyres/end-of-life tyres (ELT) and the manufacturing of value-added products.
The company manufactures crumb rubber, crumb rubber modifier (CRM), crumb rubber modified bitumen (CRMB), polymer modified bitumen (PMB), bitumen emulsion, reclaimed rubber/ ultrafine crumb rubber compound, cut wire shots, polymer composites etc.
The products are primarily used for making/repairing roads, tyres and the auto parts industry.
The company is the first to market and the largest player for Rubberised Bitumen (CRMB) in India. It is also the largest supplier of Micronized Rubber Powder to the tyre and conveyor belt Industry in India and holds the position of the largest manufacturer of Crumb Rubber and Crumb Rubber Modifier (CRM) in the country.
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Written By Vaibhav Patil
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