Nandani Creation Ltd.
Another interesting microcap.
Market cap around 90 cr
Revenue. 45 cr
Descend profit making company.
Almost debt free.
E-retailer.
Jaipuriya kurti, palazzo , jacket, suits, fusion bear etc
Client like Amazon, meesho, flipkart, snapdeal, Myntra, Paytm, azio, nyyka tatacliq etc.
Many stores in Rajasthan.
Expansion in progress.
Input from respected members invited.
Disclosure… Initial investment. Planning to increase holding gradually.
Company name:— Tinna Rubber and infrastructure Ltd.
Market capitalisation:-- 145crs.
Promoters holding:-- 73.81 percent.
FII holding :-- .59 percent (new entry)
Campany’s site :-- http://www.tinna.in/
Financials :-- Tinna Rubber & Infrastructure Ltd financial results and price chart - Screener
Investors presentation :-- https://www.bseindia.com/xml-data/corpfiling/AttachHis/0c690e63-5b0f-4070-a7ad-9c76ef970e7f.pdf
Management discussion :- Tinna Rubber & Infrastructure Ltd. - Valorem CXO Meet - YouTube
Tinna Rubber and Infrastructure Ltd. (Tinna) was founded in 1977 and has grown to become the largest
integrated waste tyre material recycler not only in India but also Asia. It is amongst the global leaders in
the manufacturing of recycled rubber materials, like Crumb rubber and Crumb Rubber modifiers for
bitumen. It is also one of the very few companies in the world to manufacture 80-140 mesh micronized
rubber powder. The company caters to the entire range of recycled rubber applications including crumb
rubber for the purpose of road construction and also non-road applications like new tyres, rubber mats,
conveyer belts, and many more.
The company has built strong world class infrastructure through sustainable and fully integrated
manufacturing facilities with completely environmentally friendly processes and zero liquid discharge
processes. The manufacturing facilities spread across India at Panipat (Haryana), Kalamb (Himachal
Pradesh), Haldia (West Bengal), Gumudipoondi (Tamil Nadu) and Wada (Maharashtra). Over the years,
Tinna has constantly focused on innovation, backward integration and quality improvements.
With the increasing awareness about the benefits of recycling waste tyres not only by the government
but also by the community at large, the company has built a strong demand and order book pipeline from
the revival of the road sector post change in the Government guidelines as well non road segment. With
ample capacities in place to cater to this rising demand, the bright future envisioned for the company is
now becoming a reality. In Q2-FY22 revenues grew by 76% year on year, while EBITDA and PAT grew by
over 100% year on year, and the company has also reduced debt considerably as compared to a year ago.
Triggers are:-
Sales,EBIDTA and Net profit is increasing.
Debt is reducing and interest coverage is healthy.
Management is optimistic to be Debt-free in two years.
Capacity of company is 72,000 MTPA.
As per management current capacity utilisation is 60 percent and expect 100 percent utilisation in FY 22-23.
High entry barrier in this business as product approval takes 3 to 5 years.
As per management there is tailwind in the sector and there is huge demand of their products.
Contribution of export is 5 percent in sales and management expect it to 20 percent in coming years.
Govt. Of India in process of making use of CRMB mandatory on top layer of all road surfaces.
All major tyre companies in India are it’s clients.
Disclosure : invested.
What Happened to the Loan and Advance sections from suddenly from 21 Cr Gone from book ? in Sept Qtr
From loan and Advances to Other Asset Item. Only group has changed nothing else
Message from Hon’ble Minister of Road Transport & Highways, Shri Nitin Gadkari Ji, during National Conference on Bitumen & Road sector (Organised by Rex Fuels along with CRRI-CSIR) held in Delhi on 25th November 2021 reinforces commitment of our Government to create sustainable and long lasting roads using Crumb Rubber Modified Bitumen (CRMB)
Shareholding pattern of TINNA RUBBER for Dec 21 qtr. announced.
https://www.bseindia.com/corporates/shpSecurities.aspx?scripcd=530475&qtrid=112.00
FII holding increased to .64 percent from .59 percent.
DOLLY KHANNA holds 1,42,739(1.67 percent) shares in the company.
In this counter purchase activity has increased significantly. For the last three sessions, it has increased by three 10% circuits! A bonus issue is going to happen (7:10) on 17th Jan 21. Is there any change in the company?. Two Bulk purchases of 1 Lakhs shares each by Rohan Gupta are done on 3 and 4th January (Source BSE: Stock Share Price | Get Quote | BSE) . You are requested to comment on this.
One microcap which i found out recently: Master Trust Ltd financial results and price chart - Screener
Brokerage company, nothing spectacular about the product.
Their android app is powered by tradelab.in. I haven’t opened an account so I am not able to test the user experience offered by them. However their Playstore rating is 3.7 whereas mature brokerages’ app have 4+ ratings.
They have pan india offline presence with higher concentration near NCR.
The recent growth can be attributed to the market bull run after lockdown. All brokerages witnessed tremendous growth and Mastertrust’s growth (in %) is in line with the mature peers.
They also offer PMS service but their revenue and profit contribution is minimal.
The management remuneration was 2.7cr against net profit of 37cr for 2021.
The KMP has also given loan to the company and receive reasonable interest on it. The net interest amount is insignificant.
The secretarial audit has multiple points reported (pg 44 of AR’21) which I consider as minor issues but reflect on the management poorly.
The company has excessive cash at the moment. (like other brokerages)
MCAP: 375
EV: -292
TTM Sales: 293
Net borrowing: 103, Paybles: 577
Cash equivalent: 770, Receivables: 51
The stock price has grown 8x in a year already. Current PE is 7.47.
Any though tribe members?
RUTTONSHA INTERNATIONAL RECTIFIER…
A ultramicrocap company.
Market cap approx 190 cr.
Profitable company.
Almost no debt(<5Cr).
High promotor holding 72.5%
Semiconductor business.
https://www.screener.in/company/517035/
It was consistent slow consistent moving company since long time, but suddenly in focus due to semiconductor shortage.
Trigger- PLI scheme from government.
Please share your view and opinions.
Disclosure: initial entry.
After Plastics, Environment Min Wants To Expand EPR To Waste Tyres
Link :- After Plastics, Environment Min Wants To Expand EPR To Waste Tyres - The Wire Science
- The environment ministry has released a draft notification to implement extended producer responsibility (EPR) for waste tyre management,
- This extension of EPR requires the manufacturers and importers of tyres to also handle their disposal after consumers have used them.
- This draft notification has been in the works for a while: experts and the National Green Tribunal have been calling for a law to tackle growing concerns over waste tyres in India
The environment ministry’s new draft notification, to extend EPR to include for waste tyres, aims to address these concerns. According to the notification, the ministry appointed an expert committee that included representatives of the NITI Aayog, CPCB and the All India Rubber and Tyre Recyclers Association, among others. The committee had been tasked with preparing a comprehensive action plan to manage the disposal of waste tyres.
After meetings with stakeholders and inputs from the committee, the ministry developed a report on tyre scrap, which also included recommendations on EPR, and submitted it to the NITI Aayog in August 2021.
According to the new draft notification, by 2024-2025, all manufacturers and importers of new tyres will need to recycle all their products, starting with recycling 35% and then 75% of their products for the first two years, and achieving 100% by 2024. The notification also bans the import of waste tyres for the sole purpose of producing pyrolysis oil or char.
Could this benefit Tinna Rubber? Stock has seen a massive run up recently.
can these policy benefit rubber chemical manufacturing company’s as there is tailwind is there , can policy as such enhance the trigger
Company like TINNA RUBBER AND INFRASTRUCTURE LTD who recycles waste tyre into value added products in eco friendly manner will be hugely benefited.
please read this. This is going on since 2017
is this not pump and dump story???
The fundamentals of Tinna Rubber looks good to me. Financial performance of the company is improving QnQ . Quarterly results of Tinna Rubber for Dec 21 will be announced on 12/01/2022. I will share my analysis on financial performance after seeing the quarterly results.
Company is showing some consistency in terms of reporting the profit. Below is the result announcement. @rinkupranjan - looking forward to your analysis on the result
In Q3 of FY 22, consolidated sales figure of Tinna Rubber increased to 70.56 crs against 55.13 crs of Q2.
EBIDTA increased to 10.84 crs against 9.98 crs of Q2. EBIDTA margin reduced to 13.36 percent against 18.1 percent of Q2.
Net profit after taxes remains flat at 4.19 crs against 4.16 of Q2.
Reason for lower EBIDTA margin:-
In an investor meet dated 15/12/2021 management already told that there is margin pressure because of increased raw material prices. The management also clarify that they have the pricing power and increased cost will be passed on to its customers in coming quarter.
During Q3 the company has booked one time additional interest cost of rs. 74.83 lakhs paid to IBCCL which is disclosed in notes on accounts.
I had attended the Investors meet with the management of the company organised by valorem cxo meet on 15/12/2021. Some important points I noted are below not covered in my earlier posts:–
The company recycles only truck and bus radial tyres. The percentage of natural rubber in radial tyres are more than any other tyre. Market share of radial tyres are increasing continuously because of better mileage.
In coming quarters the management expects EBIDTA margin of 15 to 17 percent is sustainable.
Management has given the guidance of 25 percent CAGR growth in revenue for next 3 to 4 years.
The company has signed MOU with few large tyre manufacturing companies to recycle the rejected or wastage material left after manufacturing process.
On capex plan management told that when the company reach the maximum capacity utilisation level, they will set up new facility in India or abroad.
The management is very confident on achieving the 100 percentage capacity utilisation by FY 2022-23.
The company has won many orders from road construction companies in last two and half years. Which is converting in revenue now because company’s products are used in the last phase of road construction and applied on top layer of roads.
The company has also developed a product which is mix of waste plastic and rubber to be used in road construction. That product is already applied in few road projects on trial basis.
Valuation of the company for FY 2022-23 on estimated basis by me:-
Revenue ( assuming 100 percent
capacity utilisation). 320 crs
EBIDTA ( 17 percent of revenue
As per management guidance) 54 crs
Less:-
Interest cost ( assuming no
Change in debt) 8 crs
Depreciation cost 8 crs
Profit before tax 38 crs
Less:-- taxes (25 percent). 9.5 crs
Net profit after taxes 28.5 crs
Outstanding shares
(85,64,750)
Estimated EPS for FY 2022-23 rs. 33.28
Current price rs.270.70
One year forward PE ratio
(Estimated) 8.11
Disclosure: - not for buy or sell recommendation
Very good summary. In the investor meet you mentioned the management had guided for 70% revenue growth in FY22,i.e.,221 cr. With 70 cr in Q3(9 m revs=171 cr),they are well on track to exceed this as long as wave 3 doesn’t devolve into something horrible. Company also seemed pretty confident of achieving 100% utilisation in FY23 which implies that new capex maybe announced sometime this CY. Exports is a low hanging fruit and company plans to ramp up exports to 20% of revenue in few years. Tinna has been making 56-58% GMs since a while,so EBITDA margins moving towards 20% with more scale is entirely possible.
With their 72,000 T capacity they are the largest in their segment. The total recycling market is pitted at 3-400k/year out of a total 1.5 mil tyre mkt. There is a decent share of unorganized players,which should move to players like Tinna. The India tyre market growing at 5-6% cagr will itself give a good fillip to more ELT tyres for the sector. Best part is that Natural rubber volatility doesn’t affect the recycled market much. This needs to be tracked. ESG is a global trend and over time the trend of recycling ELT tyres should only increase,how Tinna capitalizes on this will also need to be monitored.
This debt issue was a big overhang especially after ICRA had downgraded Tinna to D- but post this take over by SBI,company will save north of 4-5 cr interest cost/year which will go straight to bottomline.While Q3 margins were a bit disappointing,given this change in interest cost the UC today seems warranted.The savings will be permanent and will facilitate faster debt repayment.
Disc.: Invested.Views are biased.
Just came through article in newspaper regarding Add shop e retail.