Tolins Tyres Limited

Consumer Cyclical — Auto Parts · NSE

₹89.50+₹0.81 (+0.91%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Tolins Tyres Limited manufactures and sells tyres and tread rubber in India.

IndustryAuto Parts

SectorConsumer Cyclical

Employees25

Annual revenue₹327 Cr

How does it make money?

Turns over ₹327 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 25 employees supports ₹13.08 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹13.08 Cr

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?Little sign of one

Returns on capital of 12.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE23.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +177% while net margin moved +158% 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+177%

Margin effect+158%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.21 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

88/ 100

Cheap

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

10.9x

2Y Median

14.1x

27 monthly readings · mean 16.5x · range 7.8x–33.7x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 23% below its 2y median of 14.1x. 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 76% below the peer median of 45.7x.

vs. its own history

Cheap

14.1x median over 27 months · -23%

vs. sector peers

Cheap

45.7x median of 4 peers · -76%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.2x

PEG

0.12

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 11.3% to 15.3% over 3 years.
Debt is being paid down
Total debt is down 77% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 25.7% to 9.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 36.0% to 12.7% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 4 high

🔴High leverageFinancial
Debt/Equity of 3.00x — earnings must service borrowings before shareholders see anything.
🔴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 439% against revenue up 177% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 389% against revenue up 177% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 11.3% to 15.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 77% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 23% 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 76% 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?

Leverage amplifies any setback
Debt/Equity of 3.00x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 439% against revenue up 177%. 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 25.7% to 9.9%. 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.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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 30% a year✓ 40.4% CAGR
Latest reported year was -11.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 15.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹44 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 12.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

3 good · 4 neutral · 4 weak

Market Cap

₹354 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.9x

Cheap

Cheap against the generic band

P/B Ratio

0.98x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹8.21

Profitable

Profitable on a per-share basis

ROE

9.9%

Moderate

Moderate capital efficiency

ROCE

12.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

3.00x

High

High leverage

Revenue Growth (YoY)

-11.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-36.7%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹44 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

10.0%

Average

Average margins

Net Margin

10.3%

Good

Strong bottom-line conversion

Current Ratio

10.93

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.21

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

88.1 / 92.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹118 Cr	₹227 Cr	₹292 Cr	₹327 Cr	+40.4%
EBITDA	₹13 Cr	₹45 Cr	₹57 Cr	₹50 Cr	+55.2%
EBITDA Margin	11.3%	19.9%	19.6%	15.3%	—
PAT (Net Profit)	₹5 Cr	₹26 Cr	₹39 Cr	₹36 Cr	+92.6%
EPS	₹1.26	₹6.58	₹10.87	₹9.03	+92.6%
ROE	25.7%	25.9%	11.9%	9.9%	—
ROCE	36.0%	38.2%	16.6%	12.7%	—
Total Debt	₹47 Cr	₹79 Cr	₹17 Cr	₹11 Cr	-38.7%
Free Cash Flow	₹1 Cr	-₹17 Cr	-₹66 Cr	-₹44 Cr	—

🟢 Revenue has grown at 40.4% a year over 3 years.

🟢 EBITDA has grown at 55.2% a year over 3 years.

🟢 EBITDA Margin has risen from 11.3% to 15.3% over 3 years (+4.0 pts).

🟢 PAT (Net Profit) has grown at 92.6% a year over 3 years.

🟢 EPS has grown at 92.6% a year over 3 years.

🔴 ROE has fallen from 25.7% to 9.9% over 3 years (-15.8 pts).

🔴 ROCE has fallen from 36.0% to 12.7% over 3 years (-23.3 pts).

🟢 Total Debt has shrunk at 38.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹44 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹393 Cr

Total Liabilities

₹31 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

-₹40 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

1.2%

Insider Holding

68.5%

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

1 negative5 general

Tolins Tyres (NSEI:TOLINS) - Stock Analysis

Simply Wall Street, 14 Oct

Tolins Tyres Share Price Near 52-Week Low | Stock Analysis

Univest, 01 Oct

Tolins Tyres FY26 net profit falls 7.7% on margin pressure

scanx.trade, 26 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Tolins Tyres IPO opens on September 9: Check price band, lot size, business model & more

Upstox, 16 Feb

Gaudium IVF, Saatvik Green Energy, Tolins Tyres among 5 stocks in focus as IPO lock-in expires tomorrow

Livemint, 26 Mar

Tolins Tyres 52 Week Low Streak: Second Straight Session

Univest, 05 Oct

Watch Items

Revenue growth is negative (-11.7%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health · Profitability

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 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 ↑