Tinna Rubber & Infrastructure: PAT growth of 131% & Revenue growth of 69% in Q1-25 at a PE of 60
Guiding for 37%+ revenue growth in FY25. Strong outlook till FY27 with revenue CAGR of 35%, profitability growth of 33% & EBITDA margin expansion from 12.4% to 18% with a target ROCE of 30%
1. Recycler of End of Life Tyres
tinna.in | BOM: 530475
on the micronized rubber powder, we have probably more than 80% market share in India.
2. FY20-24: EBITDA CAGR of 62% & Revenue CAGR of 31%
Profitability from FY22
3. Strong FY23: PAT up 29% & Revenue up 29% YoY
4. Strong FY24: PAT up 85% & Revenue up 23% YoY
5. Strong Q1-25: PAT up 131% & Revenue up 69% YoY
PAT up 5% and Revenue up 24% QoQ
6. Business metrics: Strong & Improving return ratios
Target ROCE: 30%
7. Outlook: 37% Revenue growth in FY25
i. FY25: Revenue growth of 37%+
Growing from Rs 363 cr to Rs 500 cr in FY25 implies a growth of 37%+
we want to get to 500 in this year and INR 900 by FY '27.
ii. Vision 2027: Revenue CAGR of 35% for FY24-27
While management is guiding for 25%+ revenue growth, the growth of Rs 363 cr in FY24 to Rs 900 cr in FY27 implies a revenue CAGR of 35%
We remain completely committed and focused towards achieving it. To reiterate, it is our aim to reach revenues of INR 900 crores by FY27 and achieve EBITDA margins of 18% plus and return on capital employed of over 30%.
iii. Capacity expansion in place to support Vision 2027
8. PAT growth of 131% & Revenue growth of 69% in Q1-25 at a PE of 60
9. So Wait and Watch
If I hold the stock then one may continue holding on to Tinna
Tinna had delivered ahead of its revenue guidance in FY24. It has followed it up with a very strong Q1-25 of Rs 136 cr which gives confidence in its ability to deliver as per FY25 guidance of Rs 500 cr
So, for this financial year, our earnings guidance is around INR500 crores.
With the results of Q1, I think we have -- we can speak with a lot of confidence that we will achieve that.
Aim is to get to 700 by next year and 900 by the year after
Tinna is in the middle of a strong run and has delivered sequential QoQ growth in PAT for 8 consecutive quarters starting Q2-22
The road map laid out till FY27 provides opportunity to stay in the stock.
10. Or, join the ride
If I am looking to enter Tinna then
Tinna has delivered PAT growth of 131% & Revenue growth of 69% in Q1-25 at a PE of 60 which makes valuations fully priced in the short term.
Tinna is guiding for revenue growth of 37%+ in FY25 at a PE of 60 which makes valuations fairly priced in the medium term.
Tinna has a strong outlook till FY27 with revenue growing to Rs 900 cr at CAGR of 35% at a PE of 60 implies that the opportunity is available over the long term based on FY26 & FY27 expected performance.
In the short-term there may not be margin of safety in Tinna at a PE of 60. Even a single weak quarter could trigger a strong reaction on the price.
Previous coverage of Tinna Rubber
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