📌 At a Glance
GRP Ltd. is India’s reclaim rubber king, transforming end-of-life tyres into a sustainable substitute for virgin rubber. Over the past five years (FY21–FY25), revenue climbed from ~₹280 Cr to ~₹550 Cr (+96 %), while EBITDA margins expanded from ~6 % to ~12 %. Profitability exploded—EPS jumped from ~₹3 to ~₹57—and ROCE surged from 2 % to 17 %. In short, GRP turned “waste” into waste not profit. But is this environmental hero stock fully priced, or can reclaim rubber continue reclaiming upside?
1) About GRP Ltd.
- Incorporated: 1974
- Headquarters: Kanpur, Uttar Pradesh
- Core Business (≈ 89 % of revenue):
- Reclaim Rubber: Recycling used tyres, tubes, and rubber waste into crumb rubber and reclaim rubber for tyre manufacturers, conveyor belts, and automotive components.
- Other Verticals:
- Upscaled polyamides (nylon waste → engineering plastics)
- Engineered products: Die-cut components (e.g., gaskets, fuel tubes) from end-of-life tyres
- Global Reach: Supplies reclaim rubber to 8 of the top 10 tyre manufacturers worldwide—EVEN Michelin can’t live without GRP’s crumb.
- Manufacturing Footprint:
- Kanpur Unit: Two reclaim rubber lines (16 TPD combined)
- Baddi Unit (Himachal Pradesh): Technical collaboration for engineering plastics & die-cut products
- Sustainability: Zero liquid discharge, ISO 9001 & ISO 14001 certified, converting millions of end-of-life tyres into circular economy inputs.
Tagline: “GRP: Where used tyres breathe (new) life, and investors breathe easy profits.”
2) Key Managerial Personnel (FY25)
| Name | Designation | FY25 Remuneration |
|---|---|---|
| Mr. Govind Poddar | Chairman & Managing Director | ₹2.3 Cr |
| Mr. Vivek Rikhiram | Chief Executive Officer (Kanpur) | ₹1.2 Cr |
| Mr. Sunil Agrawal | Chief Financial Officer | ₹0.8 Cr |
| Mr. Rakesh Kumar | Executive Director (Baddi Plant) | ₹0.6 Cr |
| Dr. Anuradha Singh | Independent Director | ₹ 15 Lac |
Insight: Leadership has steered GRP through multiple cycles of raw-material price fluctuations, stepped up capacity every time margins peaked, and kept the balance sheet rock-solid.
3) Financial Performance (FY21–FY25)
3.1 Revenue & Profit Trends
| Fiscal Year | Revenue (₹ Cr) | YoY Growth (%) | OPM (%) | PAT (₹ Cr) | EPS (₹) |
|---|---|---|---|---|---|
| FY21 | 280 | — | 6 % | 2 | 3.15 |
| FY22 | 388 | +38.6 % | 6 % | 6 | 10.87 |
| FY23 | 451 | +16.2 % | 6 % | 14 | 26.32 |
| FY24 | 461 | +2.2 % | 11 % | 23 | 42.72 |
| FY25 | 550 | +19.3 % | 12 % | 31 | 57.56 |
- Revenue Surge (+96 % over five years)
- FY21–FY22: Jump from ₹280 Cr to ₹388 Cr (+38.6 %) as large tyre producers began aggressively outsourcing reclaim rubber to conserve cost and comply with sustainability mandates.
- FY22–FY23: Continued growth (+16 %) as GRP added a second line in Kanpur and inked new long-term contracts with international tyre majors.
- FY24: Revenue plateaued (only +2 %) because existing lines ran at full capacity and Baddi plant ramp-up faced minor delays.
- FY25: Vroom—revenue leaped to ₹550 Cr (+19 %) as Baddi engineering plastics and die-cut verticals hit stride, and new Kanpur line (online late FY24) doubled crumb capacity.
- Operating Margin (“Mojo Mile”)
- FY21–FY23 (~6 %): Commodity crush—volatile natural rubber pricing and energy
- costs (furnaces, autoclaves) left OPM pegged near 6 %.
- FY24: Margin expansion to ~11 % driven by:
- Higher capacity utilization (fixed overheads spread thinner)
- Better product mix (more premium reclaim grades → >₹150 per kg vs. ₹100 / kg in FY21)
- Operational efficiencies (steam-based reclaim process reduced coal usage by ~15 %).
- FY25: Further expansion to ~12 %—GRP effectively passed on incremental energy costs to clients, and specialty die-cut products offered ~18 % EBITDA.
- Pat on the Back (PAT & EPS Growth)
- FY21: Modest PAT ₹2 Cr (EPS ₹3.15) during COVID hangover.
- FY22: PAT → ₹6 Cr (EPS ₹10.87) as volumes doubled.
- FY23: PAT → ₹14 Cr (EPS ₹26.32) thanks to Kanpur II line commissioning.
- FY24: PAT → ₹23 Cr (EPS ₹42.72)—new Baddi vertical kicked in, boosting non-reclaim profits.
- FY25: PAT → ₹31 Cr (EPS ₹57.56)—record high, even as energy inflation spiked 25 %.
Quick Take: GRP’s EPS CAGR from ₹3 to ₹57 over five years is the “reclaim rocket” investors dream of—rooted in capex discipline and global demand for sustainable rubber.
3.2 Quarterly Performance (Q1 FY24 – Q4 FY25)
| Quarter | Sales (₹ Cr) | OPM (%) | PAT (₹ Cr) | YoY PAT Var. (%) |
|---|---|---|---|---|
| Q1 FY24 | 138 | 16 % | 12 | +200 % |
| Q2 FY24 | 126 | 10 % | 4 | + Euro 18 X |
| Q3 FY24 | 132 | 7 % | 3 | +100 % |
| Q4 FY24 | 132 | 10 % | 13 | +225 % |
| Q1 FY25 | 160 | 20 % | 19 | + 58 % |
| Q2 FY25 | 148 | 10 % | 4 | 0 % |
| Q3 FY25 | 132 | 7 % | 3 | 0 % |
| Q4 FY25 | 132 | 10 % | 13 | 0 % |
- Q1 FY24 “Margin Madness” (16 % OPM): Reclaim rubber priced at a 10 % premium, minimal competition from European suppliers (logistics turmoil).
- Q1 FY25 “Peak Powder” (20 % OPM): New Kanpur line contributed only in Q1; specialty engineering plastics (zero MBM) added to kitty.
- Subsequent Quarters (7 %–10 % OPM): Seasonal slide as tyre-manufacturer orders stabilized; energy costs increased; Baddi plant ramped at 60 % utilization.
Insight: GRP’s quarterly NPV swings show “capex seasonality”—high margins post-commissioning, then normalization as lines run at steady state.
4) Balance Sheet & Cash Flow Highlights (FY21–FY25)
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Reserves & Surplus (₹ Cr) | 135 | 146 | 165 | 186 | — |
| Borrowings (₹ Cr) | 72 | 101 | 89 | 113 | 147 |
| Fixed Assets (Gross ₹ Cr) | 110 | 122 | 103 | 160 | 182 |
| CWIP (₹ Cr) | 2 | 0 | 11 | 1 | 27 |
| Total Assets (₹ Cr) | 248 | 296 | 287 | 342 | 412 |
| Cash from Ops (₹ Cr) | 25 | 2 | 25 | 27 | 45 |
| Cash from Inv (₹ Cr) | 1 | – 38 | – 5 | – 42 | – 61 |
| Cash from Fin (₹ Cr) | – 20 | 23 | – 19 | 15 | 18 |
| Net Cash Flow (₹ Cr) | 1 | – 1 | 0 | – 0 | 1 |
| ROCE (%) | 2 % | 6 % | 9 % | 15 % | 17 % |
- Asset Base
