Rishiroop Ltd: 90% India Sales, 10% Rubber, 100% Confusion
1. At a Glance
Rishiroop Ltd – a rubber & polymer company that has been around since 1984, merged, morphed, and managed to stay alive while peers either got eaten or shut shop. CMP is ₹131, P/E just 10.8, book value ₹144 (trading below BV), yet profits fell 56% YoY. Classic “cheap stock but not cheerful.”
2. Introduction
Rishiroop’s story is as old as Doordarshan – founded in the 80s, when India imported more rubber than Hollywood imported Shah Rukh Khan jokes. The company merged Puneet Resins and Rishiroop Rubber (International) to become a hybrid player in NBR-PVC blends, chlorinated rubber (Chlorub), and polymer trading.
In English: they make and trade stuff that goes into petrol hoses, gaskets, cable sheathing, O-rings – basically all the invisible rubber parts without which your car, gas stove, and factories won’t work. It’s not a glamorous business like FMCG or IT, but it’s the kind that survives quietly in the industrial supply chain.
The company even sold a big plot at GIDC for ₹27.6 Cr (probably more money than they made in operations that year). Also did a buyback at ₹125 in 2021 (current price ₹131, so at least shareholders didn’t get slaughtered like Zomato IPO buyers).
So the question is: is Rishiroop a boring value gem, or just a polymer shop running on other income?
3. Business Model (WTF Do They Even Do?)
Rishiroop runs two engines:
Manufacturing of NBR-PVC blends – Sold under Vinoprene and Vinoplast. Think of these as industrial chutneys: mix PVC and NBR to get rubber good enough for non-tyre industrial goods.
Trading of Polymers & Additives – Import & sell a catalogue of 20+ items: EPDM, PBR, SBR, carbon black, fillers, oils, waxes, antioxidants, etc. Basically “Rubber ka Amazon.”
Clients are MSMEs making hoses, rollers, seals, automotive parts. India contributes 90% of sales, exports just 10%.
But here’s the twist: two-thirds of revenue is trading, only one-third is manufacturing. Translation: margin game is weak.
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue (₹ Cr)
17.7
17.6
18.8
+0.3%
-5.8%
EBITDA (₹ Cr)
1.40
1.04
1.64
+35%
-14%
PAT (₹ Cr)
8.67
8.17
-2.39
+6%
NA
EPS (₹)
9.5
8.9
-2.6
+7%
NA
Annualised EPS = ~₹12.2 → P/E ~10.8. But last year’s PAT includes ₹9 Cr “other income” (land sale, investments). So, operating PAT is much lower.
