Tolins Tyres (TOLINS)
CyclicalScore breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹96.7 |
| Market Cap | ₹382.05 Cr |
| P/E Ratio | 10.71 |
| ROCE | 21.3% |
| ROE | 5.95% |
| Dividend Yield | 0% |
| Profit Growth | -35.32% |
| Debt/Equity | 0.03 |
| Sales Growth | -28.73% |
| Promoter Holding | 68.53% |
| 52-Week Range | ₹83.04 — ₹202 |
| Sector | Auto Components |
| Book Value | ₹91.34 |
Strengths
- Very low leverage with D/E of 0.05; strong balance sheet
- ROCE of 21.30% indicates efficient capital usage at the operating level
- Sales growth of 33.77% shows healthy demand
- Promoter holding at 68.53% aligns interests
- Reasonable valuation at P/E of 12.18 and P/B of 1.55
Concerns
- Profit growth is negative (-3.67%) despite strong sales growth, indicating margin pressure
- ROE of 5.95% is low; shareholders are not seeing strong returns on equity
- Piotroski F-Score of 4/9 raises fundamental-quality concerns
- No dividend (0% yield), so investors rely solely on capital gains
AI Analysis
At ₹110.31, Tolins Tyres has a market cap of just ₹439 Cr. As Graham said, price is what you pay, value is what you get. The P/E of 12.18 and P/B of 1.55 look reasonable, and D/E of 0.05 gives a strong balance-sheet cushion. Promoter holding of 68.53% aligns owners with public shareholders. But I need a business that can compound, and here the quality signals are mixed. ROCE is a healthy 21.30%, yet ROE is only 5.95%—the equity base is not producing enough for shareholders. Sales grew 33.77%, but profit fell 3.67%. That tells me revenue is being bought with lower margins, not pricing power. The Piotroski F-Score of 4/9 is a clear caution sign. The latest quarter shows ₹93 Cr sales and ₹10 Cr profit; if annualised, the earnings yield is around 9%, but I need certainty that this profit is sustainable. This is a tyre business—cyclical, competitive, and vulnerable to input costs. The 52-week range of ₹83.04 to ₹202.00 shows the market has already repriced it sharply; at ₹110.31, it is closer to the low. A zero dividend yield means minority shareholders get no income while waiting. The quoted PEG of 0.36 looks attractive, but it is not backed by earnings growth. I would keep this on a watch-list and want several more quarters of stable, improving margins before treating it as a wonderful business. It may eventually be a good cyclical value buy, but not yet a certain one.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer