Tolins Tyres Limited IPO Review
Neutral226-226 · Mainboard
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Analyst Verdict
Tolins Tyres Limited IPO
Neutral
IPO at a Glance
Price Band
226-226
Issue Size
203cr
Min. Investment
₹14,916
Opens
2024-09-07
Closes
2024-09-09
Listing
2024-09-14
Category
Mainboard
Key Strengths
✓The company’s two manufacturing facilities in Kalady, Kerala are located in a strategically advantageous area as the Inland Container Depot and seaport is approximately 40 km and Kochi Airport, which is an international airport connected to worldwide destinations is merely 6 km from its manufacturing facilities.
✓It is a profitable growing company in the retreading and tyre manufacturing space and its Profit after Tax has grown at a CAGR of 541.98% between Fiscal 2022 (on a standalone basis) and Fiscal 2024 (on a consolidated basis).
✓It has a total of 163 stock-keeping units (SKU) in the tyre category and 1,003 SKUs in tread rubber, this catalogue has been built over the decades to fit in with market requirements and to fulfil customer requirements.
✓It has been accredited with various quality certifications such as ISO 9001:2015, and IATF 16949:2016 issued by UK Certifications. The Company’s (tyre plant) is BIS (ISI certification required for tyres) approved and almost all required sizes have BIS product certification, which is mandatory for manufacturing and marketing tyres in India.
Key Risks
⚠Nearly 72% of the tyre products are sold to dealers & distributors. The company does not enter into contractual agreements with its distributors and dealers and any failure to maintain the relationship with these dealers & distributors or find competent replacements could affect the sales of its products.
⚠The company faces competition from both domestic and multinational corporations. Failure to compete effectively could result in the loss of customers and market share.
⚠The company has substantial working capital expenditure and may require additional financing to meet those requirements, adversely affecting the financial condition.
⚠The sale of its products is concentrated majorly in Kerala accounting for nearly 46.71%, 66.91%, and 63.33% of the revenue from operations, respectively in the last years. Any adverse developments affecting the operations in the region could negatively impact the business operations.
⚠The company is dependent on contract labour and any disruption to the supply of such labour for its manufacturing facilities or inability to control the composition and cost of the contract labour could adversely affect the business.
Frequently Asked Questions
Should I apply for Tolins Tyres Limited IPO?
Based on our analysis, our rating for Tolins Tyres Limited IPO is: Neutral. Review the full analysis including strengths, risks, and financials on CheckIPO before making a decision.
What are the key risks of Tolins Tyres Limited IPO?
Nearly 72% of the tyre products are sold to dealers & distributors. The company does not enter into contractual agreements with its distributors and dealers and any failure to maintain the relationship with these dealers & distributors or find competent replacements could affect the sales of its products. The company faces competition from both domestic and multinational corporations. Failure to c
What are the strengths of Tolins Tyres Limited IPO?
The company’s two manufacturing facilities in Kalady, Kerala are located in a strategically advantageous area as the Inland Container Depot and seaport is approximately 40 km and Kochi Airport, which is an international airport connected to worldwide destinations is merely 6 km from its manufacturing facilities. It is a profitable growing company in the retreading and tyre manufacturing space and
What is the price band of Tolins Tyres Limited IPO?
The price band for Tolins Tyres Limited IPO is 226-226. The IPO has closed.
Full Analysis Available
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