Tinna Rubber (TINNARUBR)
Fast GrowerFairStock Score: 50/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,089.7 |
| Market Cap | ₹1,963.18 Cr |
| P/E Ratio | 31.84 |
| ROCE | 28.05% |
| ROE | 31.1% |
| Dividend Yield | 0.37% |
| Profit Growth | 67.1% |
| Debt/Equity | 0.43 |
| Sales Growth | 19.9% |
| Promoter Holding | 67.58% |
| 52-Week Range | ₹527.45 — ₹1,322 |
| Sector | Industrial Products |
| Book Value | ₹168.66 |
Strengths
- Exceptional profitability: ROE 31.10% and ROCE 28.05%
- Conservative balance sheet with debt/equity of only 0.38
- Strong promoter holding of 67.58% aligns with minority shareholders
- Sharp profit growth of 56.99% with a healthy Piotroski F-Score of 7/9
- PEG of 0.74 suggests reasonable valuation if growth sustains
Concerns
- Expensive on book value: P/B of 8.39 versus book value of ₹84.81
- Sales growth of only 13.35% is far below profit growth, raising sustainability questions
- High P/E of 26.16 leaves little room for error if earnings growth decelerates
- Low dividend yield of 0.56% offers minimal downside support
AI Analysis
I like businesses that earn high returns on capital without excessive leverage. Tinna Rubber scores well here: ROE is 31.10% and ROCE is 28.05%, while debt-to-equity is only 0.38. Promoters own 67.58%, which aligns their interests with mine. The Piotroski F-Score of 7/9 also suggests the financial position is fundamentally sound. But Graham would remind me that a wonderful business can be a poor investment if I overpay. At ₹711.90, the P/E is 26.16 and the P/B is 8.39 against a book value of just ₹84.81. That is a steep premium. The recent profit growth of 56.99% catches the eye, but sales growth is only 13.35% — profit cannot outpace revenue forever. The latest quarter shows sales of ₹139 Cr and net profit of ₹13 Cr, so annualised earnings are roughly ₹52 Cr, which explains the current multiple. The dividend yield of 0.56% means I am paid little to wait. The stock has fallen from its 52-week high of ₹1,322 to ₹711.90, so Mr. Market has already taken some froth off. Still, the P/E is not cheap. The PEG ratio of 0.74 argues that if the high profit growth continues, the valuation becomes reasonable — but that is a big if. This looks like a fast-growing, well-run niche player, but I need a margin of safety before committing. I would keep it on the watchlist and wait for either a lower price or more quarters of consistent earnings delivery.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer