📌 At a glance
Viaz Tyres Ltd posted a 41% YoY jump in FY25 net profit to ₹333.81 lakh, but the market is not impressed — the stock hit lower circuit at ₹56.05. Why? Because cash from operations turned negative, and receivables shot up like petrol prices before elections. Add a non-operational Dubai subsidiary to the mix, and you’ve got a tyre company that’s moving… but with a dangerously flat wallet.
🏢 About the Company
- Name: Viaz Tyres Limited
- CIN: L25199GJ2018PLC103740
- Sector: Tyre manufacturing (SME listed)
- Headquarters: Ahmedabad, Gujarat
- Business Segment: Only one — manufacturing tyres. No frills.
🧑💼 Key Managerial Personnel
- Rajeshkumar Prabhudas Patel — Whole-Time Director & CFO
- Auditors: Doshi Doshi & Co. — issued a clean (unmodified) opinion on both standalone and consolidated results
📊 Financials – Standalone (FY25 vs FY24)
| Particulars | FY25 (₹ Lakhs) | FY24 (₹ Lakhs) | Change (%) |
|---|---|---|---|
| Revenue from Operations | 5,725.88 | 5,036.82 | +13.7% |
| Total Income | 5,778.16 | 5,069.62 | +14.0% |
| EBITDA (approx) | 679.66 | 540.35 | +25.8% |
| Profit After Tax (PAT) | 333.81 | 237.28 | +40.7% |
| Earnings Per Share (EPS) | ₹2.72 | ₹1.94 | +40.2% |
| Operating Cash Flow | -264.82 | +365.57 | — |
🧮 Forward-Looking Fair Value (FV) Estimate
Assuming a sector-average P/E of 15× on FY25 EPS:
FV = ₹2.72 × 15 = ₹40.80 per share
📉 CMP = ₹56.05 → already trading 37% above FV.
💡 Either the market knows something… or there’s some heavy tyre inflation.
🌍 What’s Up With Autobots Dubai?
- Subsidiary Name: Autobots Trading FZC (Dubai, UAE)
- Ownership: 90% by Viaz Tyres
- Business Activity in FY25: None. Nada. Zilch.
- Audit Status: Not even audited. Because there was nothing to audit.
Just vibes and a fancy name. 🚫🛞
🧾 Balance Sheet Review
| Item | Mar 2025 | Mar 2024 |
|---|---|---|
| Share Capital | 1,225.10 | 1,225.10 |
| Reserves & Surplus | 2,456.14 | 2,122.34 |
| Total Borrowings | 1,559.23 | 1,353.70 |
| Trade Receivables | 3,049.13 | 2,003.12 |
| Inventories | 1,386.37 | 1,227.52 |
| Cash & Bank | 48.97 | 313.54 |
Red Flags:
🚨 Receivables are 53% of total assets — someone’s not paying
🚨 Cash down 84% YoY — from ₹313L to ₹49L
🚨 Borrowings up 15% — just to stay afloat?
🪙 Cash Flow Analysis (FY25)
- Operating Activities: -₹264.82L
- Investing Activities: -₹58.33L
- Financing Activities: +₹58.58L
- Net Change in Cash: -₹264.57L
🧯 From ₹313L to ₹49L. That’s not a slowdown — that’s a tyre burst.
📈 Growth & Industry Outlook
- Tyre sector in India is growing steadily, especially in aftermarket demand.
- Viaz seems to be capturing topline growth, but not managing collections.
- Dubai subsidiary might help exports eventually — IF it starts operations.
🧠 EduInvesting Take
This is the tyre story no one expected:
🚀 Strong profit
⚙️ Manufacturing intact
💸 But — cashless and choking on receivables
There’s a real business here, but it’s riding on credit fumes. If customers don’t start paying up, Viaz may need to pause expansion and hit the brakes.
Verdict:
“Tyres toh theek hai, par paisa kahan hai bhai?”
⚠️ Risks & Red Flags
- ❌ Zero Dubai revenue from Autobots FZC
- ❌ Massive receivables — ₹30+ crore locked up
- ❌ Cash crunch — hardly ₹49L in hand
- ❌ Auditors hinting at liquidity pressure, though issuing clean report
📉 Market Reaction
- Stock hit lower circuit at ₹56.05 on result day
- Likely reacting to cash flow concerns and zero traction in Dubai arm
🎯 Final Word
Viaz Tyres is making and selling tyres — no doubt. But unless they can collect what they’re owed, the only thing spinning will be their accounts receivable.
Author: Prashant Marathe
Date: 29 May 2025
Tags: Viaz Tyres, Autobots Dubai, SME Stocks, Tyre Sector, FY25 Results, NSE Emerge, Cash Flow, Receivables, EduInvesting
