Tinna Rubber and Infrastructure Limited

Basic Materials — Specialty Chemicals · NSE

₹920.00−₹3.30 (−0.36%)

DalalBaazaar Score

64 / 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, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Tinna Rubber and Infrastructure Limited manufactures and supplies rubber products in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees1,037

Annual revenue₹545 Cr

How does it make money?

Turns over ₹545 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 1,037 employees supports ₹52.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹52.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 22.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 17.6% against a peer median of 22.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE22.3%

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 +85% while net margin moved +31% 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+85%

Margin effect+31%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 26.4x already prices in growth
• P/E is close to its own historical median of 32.1x
✗ P/B of 5.45x is a steep premium to book

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

64/ 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

26.4x

2Y Median

32.1x

20 monthly readings · mean 31.7x · range 19.0x–41.2x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 18% below its 2y median of 32.1x. 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 35% below the peer median of 40.4x.

vs. its own history

Fair

32.1x median over 20 months · -18%

vs. sector peers

Cheap

40.4x median of 4 peers · -35%

vs. generic bands

Fair

15x–35x

EV/EBITDA

18.9x

PEG

0.77

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 14.7% to 17.3% over 3 years.
High return on capital employed
ROCE of 22.8% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 22.7% to 17.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 28.1% to 22.8% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 114% over 3 years, from ₹60 Cr to ₹129 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Receivables growing faster than salesFinancial
Receivables up 109% against revenue up 85% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 14.7% to 17.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 35% 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?

Sales are being booked faster than collected
Receivables are up 109% against revenue up 85%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 22.7% to 17.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 17% a year✓ 22.8% CAGR
Latest reported year was 19.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 17.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹52 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 22.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹1,657 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.4x

Fair

Fairly valued against the generic band

P/B Ratio

5.45x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹34.9

Profitable

Profitable on a per-share basis

ROE

17.6%

Strong

Strong capital efficiency

ROCE

22.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.43x

Low

Conservative leverage

Revenue Growth (YoY)

19.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

67.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.35%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹52 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

18.9%

Good

Healthy core-business profitability

Net Margin

10.8%

Good

Strong bottom-line conversion

Current Ratio

1.12

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

49%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

948.2 / 1004.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

39.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹294 Cr	₹362 Cr	₹505 Cr	₹545 Cr	+22.8%
EBITDA	₹43 Cr	₹66 Cr	₹82 Cr	₹94 Cr	+29.9%
EBITDA Margin	14.7%	18.1%	16.3%	17.3%	—
PAT (Net Profit)	₹22 Cr	₹40 Cr	₹48 Cr	₹53 Cr	+34.3%
EPS	₹12.73	₹23.52	₹28.19	₹29.67	+32.6%
ROE	22.7%	31.5%	27.1%	17.6%	—
ROCE	28.1%	32.4%	28.8%	22.8%	—
Total Debt	₹60 Cr	₹86 Cr	₹135 Cr	₹129 Cr	+28.8%
Free Cash Flow	₹24 Cr	-₹14 Cr	-₹34 Cr	-₹52 Cr	—

🟢 Revenue has grown at 22.8% a year over 3 years.

🟢 EBITDA has grown at 29.9% a year over 3 years.

🟢 EBITDA Margin has risen from 14.7% to 17.3% over 3 years (+2.7 pts).

🟢 PAT (Net Profit) has grown at 34.3% a year over 3 years.

🟢 EPS has grown at 32.6% a year over 3 years.

🔴 ROE has fallen from 22.7% to 17.6% over 3 years (-5.1 pts).

🔴 ROCE has fallen from 28.1% to 22.8% over 3 years (-5.3 pts).

🔴 Total Debt has grown at 28.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹24 Cr to -₹52 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹529 Cr

Total Liabilities

₹229 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹57 Cr

Capex

-₹109 Cr

Shareholding (proxy)

Institutional Holding

3.4%

Insider Holding

69.5%

Corporate Actions

Dividend Rate

₹3.25

Ex-Dividend Date

08 Sept 2026

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

2 mixed4 general

Tinna Rubber and Infrastructure: ஆந்திராவில் பிரம்மாண்ட ரீசைக்கிளிங் ஹப் - ₹250 கோடி முதலீடு!

Whalesbook, 15 Oct

Tinna Rubber and Infrastructure vs Nifty 50 Return Comparison

Univest, 14 Oct

Tinna Rubber and Infrastructure (TINNARUBR.NS) Slips 1.03% to ₹940.45, Holding Above Key Support - Volume Climax

https://www.siam.in/, 07 Oct

Concerns Surrounding Tinna Rubber and Infrastructure's (NSE:TINNARUBR) Performance

Simply Wall Street, 31 May

Tinna Rubber Q1 Consolidated Net Profit At ₹20.6 Crore Versus ₹11.7 Crore YoY

Sahi, 20 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Tinna Rubber & Infrastructure Ltd (BOM:530475) Q1 2027 Earnings Call Highlights: Record ...

Yahoo Finance, 23 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

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

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability

WeakValuation · Risk

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. 2 high-severity red flags sit above this conclusion and should be read first.

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