1. At a Glance – From Tyre Graveyard to Stock Market Drama
₹972 crore market cap. ₹1,803 share price. Stock down 30.6% in one year and 8.35% in the last 3 months. P/E sitting at 38.6, while the industry median P/E is around 21. Book value? ₹340. Price-to-book? A spicy 5.31x.
Latest quarterly revenue (Q3 FY26): ₹135 crore (₹1,352 Mn).
Quarterly PAT: ₹0.85 crore (₹9 Mn).
Quarterly PAT down 81% YoY.
ROCE: 17.5%
ROE: 17.4%
Debt to equity: 1.12
This is a company that recycles tyres, plastics, nylon, and basically everything except investor emotions.
But here’s the twist.
GRP supplies to 8 of the top 10 global tyre manufacturers, exports to 55+ countries, holds 18% Indian market share, and controls 35% of India’s reclaimed rubber exports.
And yet, margins are melting faster than bitumen in May heat.
So is this a sustainability champion going through a bad patch… or is valuation running ahead of fundamentals?
Let’s open the recycling bin and see what’s inside.
2. Introduction – Fifty Years of Tyre Therapy
GRP Ltd was established in 1974. Back when recycling meant reusing plastic covers in Indian kitchens.
Today, it is a full-scale integrated polymer recycling company with 5 business verticals, 7 manufacturing facilities across 5 locations, and total capacity of 90,500 MTPA (plus new crumb rubber addition).
It turns:
- End-of-life tyres into reclaim rubber
- Nylon waste into polyamide
- Plastic waste into polymer composites
- Rubber scraps into industrial components
Basically, GRP is what happens when sustainability meets industrial capitalism.
But here’s the uncomfortable question.
If sustainability is the future… why did Q3 profits fall 81%?
Management says macro headwinds, tariffs, raw material inflation, forex losses, and new labour code expenses.
Fair enough.
But when a company trades at 38x earnings, the market expects superhero performance — not “macro was tough, boss.”
Are we looking at a long-term recycler in temporary pain… or a high-valuation stock discovering gravity?
Let’s decode the business.
3. Business Model – WTF Do They Even Do?
GRP operates through five verticals:
1️ Reclaim Rubber (89% revenue)
This is the main dish.
They recycle end-of-life tyres and convert them into reclaim rubber, used in tyre manufacturing, conveyor belts, and industrial rubber products.
They supply to names like:
- CEAT
- Apollo
- Bridgestone
- MRF
- Pirelli
- Yokohama
- Goodyear
In short: if tyres had a reincarnation cycle, GRP is the spiritual guru.
2️ Polymer Composite
Plastic waste converted into industrial pallets, dock fenders, wheel chocks.
Logistics, marine, and industrial sectors use these.
Think “wood replacement but with recycling swag.”
3️ Engineering Plastics
They process recycled Polyamide 6, 66, and PBT.
Used in engine covers, connectors, cable ties, automotive components.
Basically, if plastic is going inside your car, GRP may have touched it.
4️ Custom Die Forms
Industrial rubber parts like vibration pads, snow plow blades, harvester blades.
This business was hit by US tariffs.
5️ Repurposed Polyolefins
New vertical. Recycling polypropylene into compounds used in automotive interiors
