Dolfin Rubbers Limited

Consumer Cyclical — Auto Parts · BSE

₹174.75+₹2.25 (+1.30%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

The 60-second version of Dolfin Rubbers Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Dolfin Rubbers Limited is engaged in manufacturing of tyres and tubes in India. The company offers E-bike, motorcycle front, motorcycle rear, scooter, scooter rear, E-rickshaw, three-wheeler, tuk tuk, and tractor front tyres.

IndustryAuto Parts

SectorConsumer Cyclical

Employees862

Annual revenue₹170 Cr

How does it make money?

Turns over ₹170 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 862 employees supports ₹19.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹19.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 15.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE23.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +67% while net margin moved +0% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+67%

Margin effect+0%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

• ROE of 14.2% is moderate

Quality vs. Valuation

Company Quality

67/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

66/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

28.2x

3Y Median

39.3x

40 monthly readings · mean 41.1x · range 30.6x–67.9x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 28% below its 3y median of 39.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 38% below the peer median of 45.7x.

vs. its own history

Cheap

39.3x median over 40 months · -28%

vs. sector peers

Cheap

45.7x median of 4 peers · -38%

vs. generic bands

Fair

15x–35x

EV/EBITDA

20.5x

PEG

1.51

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 3 watch

🟡Debt is increasingFinancial
Total debt is up 42% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 101% against revenue up 67% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 28% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 38% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 18.6% CAGR
Latest reported year was 30.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 5.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 15.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹175 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.2x

Fair

Fairly valued against the generic band

P/B Ratio

4.49x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.19

Profitable

Profitable on a per-share basis

ROE

14.2%

Moderate

Moderate capital efficiency

ROCE

15.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.48x

Low

Conservative leverage

Revenue Growth (YoY)

30.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

24.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

5.4%

Average

Average margins

Net Margin

3.3%

Average

Average bottom-line conversion

Current Ratio

1.78

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.48

Defensive

Steadier than the market

52W Range Position

38%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

171.8 / 170.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹102 Cr	₹126 Cr	₹144 Cr	₹170 Cr	+18.6%
EBITDA	₹7 Cr	₹9 Cr	₹10 Cr	₹9 Cr	+12.3%
EBITDA Margin	6.6%	7.4%	6.8%	5.6%	—
PAT (Net Profit)	₹3 Cr	₹5 Cr	₹5 Cr	₹6 Cr	+18.7%
EPS	₹3.3	₹4.73	₹5.11	₹5.52	+18.7%
ROE	13.4%	16.8%	15.3%	14.2%	—
ROCE	14.1%	17.9%	16.9%	15.1%	—
Total Debt	₹13 Cr	₹15 Cr	₹18 Cr	₹19 Cr	+12.5%
Free Cash Flow	-₹2 Cr	₹1 Cr	₹1 Cr	-₹1 Cr	—

🟢 Revenue has grown at 18.6% a year over 3 years.

🟢 EBITDA has grown at 12.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 6.6% to 5.6% over 3 years (-1.0 pts).

🟢 PAT (Net Profit) has grown at 18.7% a year over 3 years.

🟢 EPS has grown at 18.7% a year over 3 years.

🟡 ROE has held roughly flat at 14.2% over 3 years.

🟡 ROCE has held roughly flat at 15.1% over 3 years.

🔴 Total Debt has grown at 12.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹83 Cr

Total Liabilities

₹44 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.8%

Corporate Actions

Ex-Dividend Date

04 Aug 2023

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

6 general

Dolfin Rubbers Ltd is Rated Sell by MarketsMOJO

MarketsMojo, 17 Oct

Dolfin Rubbers Ltd. Peer Comparison – Compare with Others

Value Research, 03 Sept

Dolfin Rubbers shareholders unanimously approve all resolutions at 31st AGM

scanx.trade, 09 Sept

TOLINS Stock Price and Chart — NSE:TOLINS

TradingView, 16 Sept

Tolins Tyres (NSEI:TOLINS) - Stock Analysis

Simply Wall Street, 14 Oct

Emerald Tyre Manufacturers (NSEI:ETML) - Stock Analysis

Simply Wall Street, 12 Dec

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Valuation · Risk

WeakProfitability

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑