1. At a Glance
Tolins Tyres isn’t MRF, but it’s making noise in the PCTR (Precured Tread Rubber) and specialty tyre niche. With ROE over 18%, almost zero debt, and an Apollo Tyres offtake agreement in its back pocket, Tolins may just be rolling toward the spotlight.
2. Introduction with Hook
Imagine you’re a mid-sized tyre player quietly building traction while the biggies spin in global slowdown puddles. That’s Tolins Tyres. It’s like the Maruti 800 of Indian tyre stocks: no frills, decent mileage, surprisingly peppy.
- FY25 Net Profit: ₹39 Cr (up 50%)
- ROCE: 21.2%
- Debt down from ₹79 Cr to ₹17 Cr in just a year
And they just inked a deal with Apollo Tyres. No cap.
3. Business Model (WTF Do They Even Do?)
Tolins Tyres Ltd manufactures:
- PCTR (Precured Tread Rubber) – used for tyre retreading (major margin driver)
- Tyres for LCVs, agri vehicles, two/three-wheelers
- Backward Integration: Bonding gum, vulcanizing solutions, tyre flaps, tubes
- New Subsidiary (FY25): Focused on rubber product expansion
Their niche? They’re the vendor behind your truck’s last 100,000 km.
4. Financials Overview
| FY | Sales (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | OPM % | ROE % |
|---|---|---|---|---|---|
| FY24 | 227 | 47 | 26 | 21% | — |
| FY25 | 292 | 56 | 39 | 19% | 18.2% |
Comments:
- EBITDA and PAT growing strongly
- FY25 EPS = ₹9.79
- Margins are impressive for this size
5. Valuation
- CMP: ₹165
- P/E: 16.9
- P/BV: 2.01
- Book Value: ₹82.1
Fair Value Range (based on 18–22x FY26E EPS of ₹12–₹13):
➡ ₹215 – ₹260
Any drop near ₹140-150? Could be a retreading opportunity for your portfolio.
6. What’s Cooking – News, Triggers, Drama
- Apollo Tyres Offtake Agreement (Nov 2024) – Secured 3-year supply deal
- New Subsidiary (May 2025) – Expanding into rubber-based products
- Debt Reduction – Borrowings fell from ₹79 Cr to ₹17 Cr in one year
- FIIs Exiting? – Stake fell from 5.4% to 0.75% in 2 quarters
Are FIIs too early, or is retail catching the better tyre cycle?
7. Balance Sheet
| Metric | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 20 |
| Reserves | 305 |
| Borrowings | 17 |
| Total Liabilities | 370 |
| Fixed Assets | 52 |
| CWIP | 10 |
| Other Assets | 307 |
Key Highlights:
- Debt down 80% in 12 months
- Reserves up 3.5x
- Capex under control—yet future-ready via CWIP and new subsidiary
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY24 | -4 | -54 | +58 | 0 |
| FY25 | -63 | -28 | +119 | +27 |
Observation:
- CFO negative due to rising working capital and receivables
- Funded by internal equity and some fresh capital
- Needs cleanup—but not dangerous (yet)
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 21% |
| ROE | 18.2% |
| OPM | 19% |
| D/E | 0.05 |
| CCC (Days) | 344 |
| Inventory Days | 241 |
| Debtor Days | 128 |
Comment:
Returns? Hot.
Cycle? Not so much—working capital days are dragging. But high margins help offset.
10. P&L Breakdown – Show Me the Money
| Metric | FY25 |
|---|---|
| Sales | ₹292 Cr |
| EBITDA | ₹56 Cr |
| Other Income | ₹3 Cr |
| Interest | ₹6 Cr |
| PBT | ₹49 Cr |
| Tax | ₹10 Cr |
| PAT | ₹39 Cr |
| EPS | ₹9.79 |
Not paying dividend, but reinvesting smartly into capacity and rubber expansion.
11. Peer Comparison
| Company | CMP ₹ | P/E | ROCE | ROE | OPM | M-Cap ₹ Cr |
|---|---|---|---|---|---|---|
| MRF | 1,50,535 | 34.2 | 13.6% | 10.6% | 14.5% | 63,834 |
| Apollo Tyres | 458 | 23.6 | 11.4% | 8.6% | 13.8% | 29,097 |
| CEAT | 3,855 | 34.0 | 15.0% | 11.7% | 10.9% | 15,594 |
| JK Tyre | 376 | 19.9 | 12.8% | 11.0% | 10.9% | 10,305 |
| Tolins Tyres | 165 | 16.9 | 21.2% | 18.2% | 19.0% | 654 |
Tolins wins the efficiency game—even if it’s a small cap in a sea of big boys.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 68.53%
- FIIs: Down to 0.75% from 5.41%
- DIIs: ~1.7%
- Public: Now over 29%
- Shareholders: 53,502 as of March 2025
FIIs are out, but public participation has surged. Someone knows something.
13. EduInvesting Verdict™
Tolins Tyres isn’t just rolling—it’s accelerating. Margins are strong, debt is nearly wiped out, and they’ve bagged Apollo as a long-term client. The only red flag? Working capital drag. But that’s manageable with current profit momentum.
- If you’re looking for a high-margin, small-cap tyre play…
- If you like boring cash machines with low hype but real contracts…
- If you don’t mind a company that doesn’t pay dividends but builds assets…
Then Tolins could be the tyre that actually holds grip in your midcap journey.
Metadata
– Written by EduInvesting Analyst | 18 July 2025
– Tags: Tolins Tyres, PCTR, Apollo Tyres Supplier, High ROE Smallcap, Rubber Industry, Debt-Free Stocks, Midcap Watchlist
