This Tyre Recycling Stock Has A Green Manufacturing Edge But Valuations Remain Sticky: SEBI Advisor

Tinna Rubber and Infrastructure is emerging as a key player in India’s circular economy, driven by steady expansion, renewable integration, and a growing global presence. 

However, rising input costs, high import dependence, and premium valuations could weigh on near-term performance.

What’s working for Tinna Rubbers?

According to SEBI-registered investment advisor Wealth Wishers, Tinna Rubber earns about 48% of its revenue from road construction materials, 30% from sports and fitness products, 10% from steel recovery, and 12% from high-grade recycled rubber.

The firm said the company’s recent ₹150 crore Qualified Institutional Placement (QIP) will fund a new Reclaimed Carbon Black (RCB) plant and debt repayment, supporting future capacity growth.

Wealth Wishers added that Tinna Rubber’s international expansion is progressing steadily, with its Oman facility already contributing about ₹2 crore in revenue and new plants planned in Saudi Arabia and South Africa. The company’s current processing capacity of 1.85 lakh tonnes per annum is targeted to rise to 2.5 lakh tonnes by FY28.

Financial performance has been steady

Wealth Wishers noted that in FY24, Tinna Rubber’s revenue grew 6% to ₹500 crore, while profit after tax declined 15% to ₹44 crore due to lower income from Extended Producer Responsibility (EPR) credits.

The company’s Return on Capital Employed (ROCE) improved to 30%, and its debt-equity ratio increased slightly to 0.76x. Wealth Wishers said Tinna Rubber aims for an 18% operating margin by FY26 and a ₹900–₹1,000 crore revenue target by FY30.

Growth triggers & challenges ahead

Wealth Wishers said Tinna Rubber is the largest tyre recycling company in Asia, benefitting from policy support for sustainable and eco-friendly infrastructure.

The advisor highlighted backward integration through a solar power plant in Vapi, which helps reduce energy costs, and noted strong return ratios as evidence of operational efficiency.

Wealth Wishers added that expansion into polymer compounding and international markets positions the company well to capture long-term demand in the green manufacturing space.

According to Wealth Wishers, the company’s dependence on imported raw materials, which make up nearly 70% of total inputs, makes it vulnerable to currency fluctuations and freight rate volatility.

The advisor also flagged that reliance on EPR credits for a significant portion of profits, along with a high valuation (P/E ~34x) compared with the industry average of ~25x, warrants investor caution.

Slightly elevated leverage could also restrict short-term financial flexibility, Wealth Wishers said.

How should investors trade Tinna Rubber?

Wealth Wishers said Tinna Rubber’s strategy aligns with India’s growing sustainability goals and the global shift toward circular manufacturing. The firm expects capacity expansion, renewable integration, and new product diversification to strengthen the company’s market position.

However, the advisor added that investors may prefer to monitor the stock for more attractive entry points given its current valuation and macroeconomic sensitivities.

What is the retail mood on Stocktwits?

On Stocktwits, retail sentiment was ‘neutral’ amid ‘extremely low’ message volume.

Tinna Rubber’s stock has declined 3.4% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on