- The company is the the tyre retreading business.
- RoE is approx 32% and RoCE is 28.5%
- FY10 Sales is 111 cr and profit is 11.5 cr
- Market Cap is currently around 55 cr. i.e, Market Cap is lesser than prev year sales
- Dividend Yield of 3.8%
- Last 3 year PAT CAGR is 40% and Sales CAGR is 22%
- Current PE is around 4.7
Increase in raw materials has exerted pressure on operating margins
Expanded manufacturing capacity at its Nalgarh plant in Himachal
Precured tread rubber production is now at 1200 tons per month and 1800 tons of uncured rubber gum
Due to a increased demand of precured tread rubber, product accessories such as URSG and vulcanizing cement (both are basically the adhesive for pasting the tyres to the pretreads by the cold-bonding process) are also seeing increased demand
Manufacturing is at 100% capacity for these additives, but demand is much greater. The increase in capacity will cater to this demand.
Dividend of Rs 4 per share in FY 10
Competition: Tyre manufactures are also launching their own retreads
Company takes payment in advance or as PDC on delivery in most cases.
Auditors S.R. Baltiboi does not want to continue as auditors for the company.
Promoter holding is 34.97% and Directors & their families hold another 44.9%. So, in all, company insiders own nearly 90% stake in the company.
Rs 1.39 crores Income Tax is under litigation in the Delhi High Court from 1998-99.