Specialty Chemical Stock Hits 5% Upper Circuit As Dolly Khanna Buys Fresh Stake
Premium- This smallcap company's stock has surged by more than 500% in the last year
Specialty Chemical firm - Tinna Rubber & Infrastructure has astonished the market with an extraordinary run over the last year.
In the last one year, Tinna Rubber has risen from around ₹32 to ₹202 per share, a rise of 524% in this period.
Similarly, over the last 30 days, the stock has surged from ₹125 to ₹200, delivering around 54% return to its investors.
Moreover, shares of this specialty chemical firm hit its 5% upper circuit and touched an all-time high of ₹202.2 per share on the BSE today.
But what sparked the rally in Tinna Rubber?
According to the latest shareholding data of the company, ace Indian investor Dolly Khanna added this multibagger stock to her portfolio during the October-December quarter.
Dolly Khanna bought 1.67% stake or 142,739 shares in the company as of December 2021 quarter, which was worth ₹2.7 bn on Tuesday.
As per December holdings, the company promoters hold 73.81% stake, while public has the remaining 26.19% holding in Tinna Rubber.
Who is Dolly Khanna and why did she decide to invest in Tinna Rubber?
Dolly Khanna is a Chennai based large investor, who is known for picking lesser-known midcaps and smallcaps. She has been investing in stocks since 1996.
Dolly Khanna's portfolio, which is managed by her husband Rajiv Khanna, is usually inclined towards more conventional stocks in manufacturing, textile, chemical, and sugar stocks.
Returning to Tinna Rubber, while we don't know the specific reason for her investment, we can interpret her move by considering certain factors.
- Excellent September quarter results
During the quarter two of fiscal 2022, the company’s net profit rose 2,850% to ₹41.3 m in the against ₹1.4 m during the same quarter last year on the back of robust operations.
Its net sales stood at ₹546.2 m in September 2021 up 76.4% from ₹309.6 m in the same period a year ago.
The company has also managed to reduce its debt levels from ₹286 m to ₹241.7 m during the quarter.
- Strong client base
The company's key customers include MRF, Apollo, TVS Srichakra, CEAT, JK Tyres, IOCL, Mangalore Refinery, Hyundai Construction Equipment, Sempertrans, etc.
- Global presence
The firm began exporting its products to Thailand, Turkey, and Sri Lanka in the financial year 2021. It’s also looking on exporting to the European market.
Exports accounted for 7% of total income in 2021, compared to 8% in the previous year.
- Leading player in its domain
Tinna Rubber and Infrastructure Limited is India's leading tyre material recycler with 5 state of the art recycling plants, a fully integrated company converting waste tyres into downstream value added products.
The company supplies recycled rubber material to leading tyre manufacturing and conveyor belt companies in India and globally.
Dolly Khanna increases her position in yet another multibagger stock
Veteran investor Dolly Khanna has picked up additional stakes in auto parts company – Talbros Automotive Components.
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In Talbros Automotive, Dolly Khanna had already held 1.3% stake till September quarter, however, as per the company’s December shareholding pattern, now Dolly Khanna owns 1.71%, which comprises 2,11,120 equity shares of the auto components making company.
Besides Khanna, renowned investor Mr. Vijay Kedia has also bought around 2.3% stakes (2.8 lakh equity shares) in this smallcap auto part company, as per the December shareholding pattern available on the BSE.
Following the news, shares of Talbros Automotive Components rallied 13% to register a new life-time high at ₹498.4, on the BSE in Wednesday’s intra-day trade backed by heavy volumes.
Which other stocks does Dolly Khanna hold in her portfolio?
As per data available on 4 January 2022, Dolly Khanna publicly holds 16 stocks with a net worth of over ₹3.8 bn.
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How the stock markets reacted to Tinna Rubber & Infrastructure
Shares of Tinna Rubber & Infrastructure opened the day at ₹202.2 on the BSE.
Its share price closed at ₹202.2 (up 5%) on the BSE.
At its current price, it is trading at a P/E of 16.1.
The share touched its 52-week high of ₹202.2 and 52-week low of ₹31.7 on 5 January 2022 and 4 March 2021, respectively.
Over the last 30 days, the share price is up 54%. Over the last one year, the company’s share price is up 524%.
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About Tinna Rubber & Infrastructure
Tinna Rubber & Infrastructure (formerly known as Tinna Overseas) is engaged in the conversion of used tires into crumb rubber and steel wires.
The company's main products or services include crumb rubber modifier, steel scrap, and crumb rubber.
The firm's segments include allied road products, which consists of crumb rubber, crumb rubber modifier (CRM), modified bitumen, and bitumen emulsion and other road products; trading and agro products, which includes trading of wheat, maize soyabean, soya de-oiled cake (doc) and other agro products, and warehousing and cargo handling, which includes providing services of warehousing and custom house agent.
Tinna Rubber’s manufacturing units are located at Haryana, Maharashtra, West Bengal, Tamil Nadu and Himachal Pradesh. For more details about the company, you can have a look at Tinna Rubber & Infrastructure’s factsheet and quarterly results on our website.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
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