Tinna Rubber & Infrastructure Receives 'Buy' Rating, Shows Strong Growth Potential

Tinna Rubber & Infrastructure, a smallcap company in the rubber products industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as no surprise, considering the company's impressive performance in the past few years.
One of the main reasons for this 'Buy' call is the company's healthy long-term growth. Tinna Rubber & Infrastructure has shown an annual growth rate of 38.55% in its operating profit, which is a strong indicator of its potential for future growth.

In addition, the company has declared outstanding results for the quarter ending June 2024, with a net profit growth of 135.62%. This positive trend has been consistent for the past 5 consecutive quarters, making it a reliable and stable investment option.

The company's operating cash flow has also been consistently high, with the highest at Rs 59.16 crore. Its return on capital employed (ROCE) is also impressive, with the highest at 27.93%. These factors, along with the company's strong financials, make it a promising investment opportunity.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement in its trend from mildly bullish to bullish on 19-Aug-24. Multiple technical indicators, such as MACD, Bollinger Band, and KST, also suggest a bullish trend for the stock.

Tinna Rubber & Infrastructure has also delivered consistent returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods. With a market cap of Rs 2,974 crore, it is the biggest company in the sector and holds a significant 22.15% share of the entire industry.

However, there are some risks associated with investing in this company. With a ROCE of 26.5, it has a relatively expensive valuation with an enterprise value to capital employed ratio of 14.9. The stock is also currently trading at a discount compared to its historical valuations.

Moreover, despite its size, domestic mutual funds hold only 0% of the company, which could indicate a lack of confidence in the stock or the business. As domestic mutual funds have the capability to conduct in-depth research, this could be a red flag for potential investors.

In conclusion, Tinna Rubber & Infrastructure is a smallcap company with a strong track record of growth and consistent returns. With a 'Buy' rating from MarketsMOJO and multiple bullish indicators, it could be a promising addition to one's investment portfolio. However, investors should also consider the risks associated with the stock before making any investment decisions.