🔍 At a glance:
Tolins Tyres (BSE: 544254) just posted a 48.7% YoY PAT surge in FY25 — and dropped its debt from ₹62 Cr to just ₹0.7 Cr. But the stock is still trading at ₹132.89, down -1.14% today. With a booming UAE segment, rising margins, and Rs. 28 Cr in cash, is this India’s most ignored turnaround in the tyre space?
🏢 About the Company
Tolins Tyres Ltd, headquartered in Kerala, is a 40-year-old company that:
- Specializes in retreading products, 2/3-wheeler tyres, LCV, and agri tyres
- Was the first Indian retread brand to break into the US market
- Operates 2 factories in Kalady, Kerala
- Sells in 40+ countries including UAE, Kenya, Egypt, Jordan
- Has 8 depots + 3,737 dealers in India
👨💼 Key Managerial Personnel (KMP)
- Dr. KV Tolin, CMD – Industry veteran with 3+ decades of rubber wisdom
- Sojan C S, CFO – Orchestrated the debt massacre
- Umesh M, Company Secretary – SEBI filings done right
📊 Financials — Q4 and FY25 Breakdown
| Metric | Q4 FY25 | Q4 FY24 | YoY Change |
|---|---|---|---|
| Revenue (₹ Cr) | 69.53 | 86.64 | 🔻 -19.75% |
| EBITDA (₹ Cr) | 13.57 | 13.87 | 🔻 -2.15% |
| EBITDA Margin | 19.51% | 16.00% | 🟢 Up |
| PAT (₹ Cr) | 9.28 | 7.00 | 🟢 +32.6% |
| PAT Margin | 13.35% | 8.08% | 🟢 Up |
| EPS (₹) | 2.56 | 2.60 | 🔻 Slight dip |
Full-Year FY25:
| Metric | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Revenue (₹ Cr) | 292.45 | 227.22 | 🟢 +28.7% |
| EBITDA (₹ Cr) | 55.77 | 46.38 | 🟢 +20.2% |
| PAT (₹ Cr) | 38.68 | 26.01 | 🟢 +48.7% |
| PAT Margin | 13.23% | 11.45% | 🟢 Up |
| EPS (₹) | 10.81 | 9.56 | 🟢 Up |
| Debt (₹ Cr) | 0.7 | 61.8 | 🧨 DOWN 99% |
| Cash & Equivalents | ₹28.19 Cr | ₹0.86 Cr | 💰🆙 Massive Surge |
🇦🇪 UAE Business — Turbocharged
- UAE segment revenue in Q4 FY25: ₹15.44 Cr (Tripled YoY)
- FY25 UAE revenue: ₹47.58 Cr (Up from ₹38.12 Cr)
- Subsidiary: Tolins Tyres LLC, Ras Al Khaimah
- Outlook: More margin-accretive and FX-beneficial
📐 Balance Sheet Highlights
| Metric | FY25 | FY24 |
|---|---|---|
| Debt-to-Equity | 0.05x | 0.77x |
| Current Ratio | 6.97x | Not disclosed |
| Capital Employed | ₹325.88 Cr | ₹166.66 Cr |
| ROCE | 15.74% | Not given |
| Inventory Turnover | 0.53x | Up 44% YoY |
Yes — from borrowing crores to sipping coconut water with ₹28 Cr cash. Debt ka the end.
🧠 EduInvesting Take
Wait… you dropped ₹61 Cr debt, increased PAT by 49%, and your stock is still chilling at ₹132? Bro…
Tolins Tyres is what MRF was before it started sponsoring F1 races and charging a lakh per share.
This is the classic case of:
- Low-float + low-noise + low-expectations = sleeper multibagger
- Their retread model is massively scalable, especially with Indian logistics exploding
- Inventory control + cash flow discipline = strong financial hygiene
- And the UAE business? Cherry on top. It’s cheaper to manufacture and sells into higher margin geographies
This stock is like a Michelin tyre stuck in a dusty godown — one monsoon away from being discovered.
📈 Forward-Looking Fair Value (FV) Estimate
Let’s assume:
- EPS growth continues at 20% CAGR next 2 years
- FY27 projected EPS = ₹15.60
- Fair P/E = 15× (conservative for tyre space)
🎯 Forward FV = ₹234/share
(Current CMP: ₹132.89)
📈 Upside potential = ~76%
⚠️ Risks & Red Flags
- Retreading is a niche. Not everyone wants used rubber.
- Geographic concentration in UAE
- Thin trading volumes – easy to manipulate
- Low brand recall in north/central India vs MRF, CEAT, Apollo
🧾 Verdict
Tolins is not just rolling tyres — it’s steamrolling its debt, ramping up profits, and chilling in the UAE.
The market hasn’t noticed yet. But it will.
This tyre might just retread its way into your multibagger list.
📅 Published: May 29, 2025
✍️ By: Prashant Marathe
🏷️ Tags: Tolins Tyres, FY25 Results, Debt-Free Company, UAE Business, Retread Tyres, Multibagger Watch, EduInvesting, Indian Tyre Sector
