Tolins Tyres Limited

As per financial performance, Tolins Tyres Limited has posted total income / net profits of Rs 114.39 Cr / Rs 0.06 Cr (FY22), Rs 119.68 Cr / 0.50 Cr (FY23) and Rs 228.69 Cr / Rs 26.01 Cr (FY24). So as per previous financials data, company has shown growth. Company has an average EPS of Rs 5.67 and average RoNW of 22.47% for last three fiscals. Issue is priced at a P/BV of 6.14 as per NAV of Rs 36.8/- as on 31.03.24. If we attribute latest earnings of FY22, FY23, and FY24, then asking price is at a P/E of around 1415, 179, and 34.33 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, one lead manager is associated with this IPO, and have handled around 2 IPOs in last three fiscals. Saffron Capital Advisors Private Limited: This is 3rd IPO from this BRLM. From last two IPOs, all opened above issue price or at par on the day of listing. As of now, from last two IPOs,  all are trading above issue price. (As on 03.09.24) As per financials, Tolins Tyres Limited has shown good growth, RoNW is 25.87% and P/E is 1415, 179, and 34.33 respectively as per FY22, FY23, and FY24 earnings. So, issue looks fully priced. Company is in business of tyres and tread rubber manufacturing and marketing along with supply of related products, which is a very fragmented and competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Dr. Kalamparambil Varkey Tolin
• 2 Jerin Tolin