SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : MM Rubber Company Ltd

BSE: 509196 NSE: ISIN: INE159E01026
  |   Sector:  Agriculture & Allied activities   |   Industry:  Rubber Products

Snapshot

Q.1 Which industry/sub-sector does MM Rubber Company Ltd belong to?
MM Rubber Company Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Rubber Products segment.
Q.2 Is MM Rubber Company Ltd a good quality company?
MM Rubber Company Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is MM Rubber Company Ltd undervalued or overvalued?
MM Rubber Company Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - -
Price to Book 12.21 6.68
Price to Sales 1.11 1.34
EV to EBITDA 145.16 17.67
Q.4 Is MM Rubber Company Ltd a good buy now?
MM Rubber Company Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of MM Rubber Company Ltd?
MM Rubber Company Ltd revenue growth is -1.5% for FY-2025, which is below its 5-year CAGR of 5.57%, indicating slower growth.

Q.2 Gross Profit margin of MM Rubber Company Ltd?
MM Rubber Company Ltd Gross profit margin which is the profit after deduction of direct costs, is -5.8% for FY-2025, which is below its 5-year median of -1%, indicating decreasing margins.

Q.3 Operating Profit Margin of MM Rubber Company Ltd?
MM Rubber Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -4.73% for FY-2025, which is below its 5-year median of 0.27% indicating decreasing margins.

Q.4 Net Profit Margin of MM Rubber Company Ltd?
MM Rubber Company Ltd Net Profit Margin is -8.98% for FY-2025, is below its 5-year median of -3.97%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -5.8 -1
Operating Profit Margin (%) -4.73 0.27
Net Profit Margin (%) -8.98 -3.97

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of MM Rubber Company Ltd?
MM Rubber Company Ltd Return on Asset is -11.15%, which is below its 5-year historical median of -5.33%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of MM Rubber Company Ltd?
MM Rubber Company Ltd Return on capital employed is -16.75% for FY-2025, which is below its 5-year historical median of -4.59%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of MM Rubber Company Ltd?
MM Rubber Company Ltd Return on equity is -52.59% for FY-2025, which is below its 5-year historical median of -17.09%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of MM Rubber Company Ltd?
MM Rubber Company Ltd Cash conversion cycle is 60 days, above its 5-year historical median of 48 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.39 1.49
ROE (%) -52.59 -17.09
ROCE (%) -16.75 -4.59
Cash Conversion Cycle 60 days 48 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of MM Rubber Company Ltd?
MM Rubber Company Ltd Debt-to-Equity ratio is 2.07, which is above the industry average of 0.44, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of MM Rubber Company Ltd?
MM Rubber Company Ltd Debt to cash flow from operations is -4.63, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of MM Rubber Company Ltd?

Q.1 Promoter shareholding and pledge status of MM Rubber Company Ltd?
Promoters hold 3.30% of the MM Rubber Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does MM Rubber Company Ltd performance compare with that of its Peers?

Q.1 Revenue growth of MM Rubber Company Ltd vs industry peers?
MM Rubber Company Ltd revenue CAGR is 5.57%, compared to the industry median CAGR of 8.96%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -1.5 9
Gross Profit Growth (%) 0 18.5
Operating Profit Growth (%) -1,900 13.1
Net Profit Growth (%) 0 20.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.39 1.31
ROE (%) -52.59 5.31
ROCE (%) -16.75 7.92
Cash Conversion Cycle (days) 60 76

Valuation & price assessment

Q.1 Stock return of MM Rubber Company Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 20% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
20% 1.7% -18.5% -12.5%
Q.2 Valuation ratios of MM Rubber Company Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - - 25.04
Price to Book 12.21 6.68 2.69
Price to Sales 1.11 1.34 1.31
EV to EBITDA 145.16 17.67 13.74

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: