Indag Rubber Ltd. share price target and research reports

Name: Latest research reports of Indag Rubber Ltd. authored by Karvy and published by - Trendlyne research reports.
Item: Indag Rubber Ltd.
Rating: 3
Author: Karvy

Latest analyst research reports with target prices and PDF download for INDAG, BSE:509162 Indag Rubber Ltd.

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Indag Rubber Ltd.

22 Dec 2016

118.20

0.17%

Indag Rubber Ltd: Excise Duty Impacted Q2FY17 on YoY; Health... (Dec 22, 2016)

Hold: Indag Rubber Ltd.

Karvy

Excise Duty Impacted Q2FY17 on YoY; Healthy Balance Sheet Maintained with Strong Cash Balances: The excise duty exemption which the company availing at its manufacturing location at Nalagarh, Himachal Pradesh has expired on Jan 15, 2016 and this affected thetotal realizations and the net profits of the company in Q2FY17 and in the first half of FY17. In Q2FY17, IDR reported a weak performance with negative growth of 43.0% in topline and negative growth of 24.9% on YoY basis in bottomline to Rs. 405 Mn andRs.65 mn respectively. Inspite of weak growth in topline, EBITDA margins improved by 229 bps to 21.1% on YoY basis mainly on the back of sginficant growth in other income.

Indag Rubber Ltd.

25 Oct 2016, 12:00AM

118.20

0.17%

Company Outlook on Indag Rubber Ltd

Neutral: Indag Rubber Ltd.

IDBI Capital

About the company: Indag Rubber was founded by the Khemka Group in 1978 as a JV with Bandag group. The JV ended in 2006 with the promoters buying the stake. The company is in the business of retreading tyres (87%), mainly for Commercial Vehicles in the domestic market. Retreading is a technology where old tyres are made serviceable by removing worn out/damaged treads and replacing it with new treads. Indag has an ~9% market share (2nd largest) in an industry worth an estimated ~31bn p.a. 40-45% of the market is unorganized. Indag recently expanded its capacity (plant in Himachal Pradesh) from 13,800 MT to 20,000 tonnes, at a cost of Rs70mn. Rationale of Retreading: 1. 30-50% of the cost of a new tyre with nearly an equivalent life2.Tested...

Is Indag Rubber Ltd. worth buying?

31 Votes:

Buy 77.42%

Sell 12.9%

Hold 9.68%