Indag Rubber is engaged in the manufacturing and sale of Precured Tread Rubber and related products. It was originally a joint venture with Bandag Incorporated, a major player in the US retreading industry, but the partnership was terminated in 2006, with Khemka Group taking over Bandag’s shareholding. Indag faces competition from several players in the retreading industry, but it holds a significant market share in the organized sector.
Indag is known for pioneering cold retreading technology in India and aims to increase its market share. It operates a large production capacity in Nalagarh, Himachal Pradesh, and has an extensive distribution network with multiple depots and dealers across the country.
Apart from its main business, Indag is associated with the Khemka Group, which has interests in various other sectors like oil and gas exploration, electric vehicles (through a joint venture named Sun Mobility EV Infra), and previously, the solar plant business.
Indag Rubber Ltd recently announced stellar Q1FY24 results in which sales of the company surged by 13% and stood at Rs 63.36 crore as compared to Q1FY23 while the operating profit of the company grew by 216% to Rs 4.85 crore as against Q1FY23. Similarly, the net profit of the company surged by 221% and stood at Rs 4.75 crore as against Q1FY23. Moreover, the EPS of the company grew by 223% to Rs 1.81 in Q1FY24 as compared to Rs 0.56 in Q1FY23.
The company has delivered stellar returns of 80.8% over the past year and whopping returns of 142 per cent over the past 3 years. Additionally, the company has a ROCE of 8.34% and a ROE of 6.33%.
On Monday, shares of the company plunged by 4.98% and reached its lower circuit of Rs 152.55.
Investors should keep a close eye on this buzzing stock.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.