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Check Before You Invest : Tolins Tyres Ltd

BSE: 544254 NSE: TOLINS ISIN: INE0RWQ01014
  |   Sector:  Automobiles   |   Industry:  Tyres & Allied

Snapshot

Q.1 Which industry/sub-sector does Tolins Tyres Ltd belong to?
Tolins Tyres Ltd belongs to the Automobiles sector, operating specifically within the Tyres & Allied segment.
Q.2 Is Tolins Tyres Ltd a good quality company?
Tolins Tyres Ltd is a weak quality company, based on a inconsistent 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 Tolins Tyres Ltd undervalued or overvalued?
Tolins Tyres Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than 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 26.09 34.11
Price to Book 1.42 1.99
Price to Sales 2.03 3.31
EV to EBITDA 15.2 18.58
Q.4 Is Tolins Tyres Ltd a good buy now?
Tolins Tyres Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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.

Q.1 Gross Profit margin of Tolins Tyres Ltd?
Tolins Tyres Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.5% for FY-2025, which is above its 5-year median of 7.3%, indicating increasing margins.

Q.2 Operating Profit Margin of Tolins Tyres Ltd?
Tolins Tyres Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.41% for FY-2025, which is above its 5-year median of 10.41% indicating increasing margins.

Q.3 Net Profit Margin of Tolins Tyres Ltd?
Tolins Tyres Ltd Net Profit Margin is 11.64% for FY-2025, is above its 5-year median of 4.22%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 16.5 7.3
Operating Profit Margin (%) 17.41 10.41
Net Profit Margin (%) 11.64 4.22

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Tolins Tyres Ltd?
Tolins Tyres Ltd Return on Asset is 8.5%, which is above its 5-year historical median of 5.46%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Tolins Tyres Ltd?
Tolins Tyres Ltd Return on capital employed is 14.16% for FY-2025, which is in line with its 5-year historical median of 14.16%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Tolins Tyres Ltd?
Tolins Tyres Ltd Return on equity is 10.87% for FY-2025, which is in line with its 5-year historical median of 10.87%, indicating the business is making similar use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Tolins Tyres Ltd?
Tolins Tyres Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.44, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Tolins Tyres Ltd?
Tolins Tyres Ltd Debt to cash flow from operations is -0.02, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Tolins Tyres Ltd?

Q.1 Promoter shareholding and pledge status of Tolins Tyres Ltd?
Promoters hold 68.53% of the Tolins Tyres Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Tolins Tyres Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Tolins Tyres Ltd vs industry peers?
Tolins Tyres Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 9.77%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 9.8
Gross Profit Growth (%) 38.1 15.7
Operating Profit Growth (%) 10.7 9.3
Net Profit Growth (%) 50 10.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.73 1.13
ROE (%) 10.87 10.87
ROCE (%) 14.16 12.59
Cash Conversion Cycle (days) 211.97 60

Valuation & price assessment

Q.1 Stock return of Tolins Tyres Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -10.07% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -10.1%
Q.2 Valuation ratios of Tolins Tyres Ltd vs historical?
The current P/E ratio of 26.09 is lower than its historical median of 34.11, indicating that the stock is trading below 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 26.09 34.11 30.55
Price to Book 1.42 1.99 2.17
Price to Sales 2.03 3.31 1.37
EV to EBITDA 15.2 18.58 11.27

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