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
