Dolly Khanna makes fresh entry in Tinna Rubber; this multibagger stock hits 52-week high on Wednesday

Ace investor Dolly Khanna has made a fresh entry into Tinna Rubber and Infrastructure Limited according to Trendlyne. Dolly Khanna picked 142,739 equity shares or1.67 per cent stake in the company. The stock hit an upper circuit of 5 per cent and hit new 52-week high of Rs 202.15 per share on the BSE today. 

Tinna Rubber is a 4-decade old specialty and petro chemical company and was in focus during Tuesday’s session.

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The stock has been a multibagger stock, as it has given around 500 per cent returns in the last on year, as compared to around 24 per cent rise in the S&P BSE Sensex. The counter in the last one month had surged nearly 50 per cent, as against 5.5 per cent rise in the benchmark. 

Founded in 1977, Tinna Rubber and Infrastructure Limited is a fully integrated company converting waste tyres into downstream value-added products. It started automation of rubber compounding for manufacturing of footwear soling sheets during the early days of business. 

Post couple of deacdes later, the company diversified itself into edible oils and agro commodities and commissioned oilseeds crushing and refining unit in western & southern part of India. In addition, it also started, in 1994, commodities export from India for rice, sugar and soya meal. 

Almost a decade ago, the company Became the largest producer of tyre crumb in India, using 50,000 MT of tyre rubber in an ecofriendly way and has also set up most modern and environment friendly plant for rubber reclaim. 

The company soon pioneered the concept of rubberized asphalt (CRMB) for better roads and to increase their longevity. Headquartered in Delhi, the company has various plants and offices mainly in northern, western and southern part of the country. 

The promoters held over 73 per cent controlling stake and 25.55 per cent is held by public (retailers), while institutional investors have marginally increased holdings to 0.97 from 0.92 per cent, similarly, FII/FPI have also raised holding to 0.64 from 0.59 per cent in in the company so far December 2021. 

The FIIs have started taking interest in the company since September quarter of 2021 as before that no such entry of FPIs is visible for at least 7 earlier quarters. Similarly, No mutual fund firm has so far invested in the company, according to the stock analysis website Trendlyne. 

There are at least 13 positives for the company as per the tredlyne, they are: Strong performance, consistent highest return stock in Nifty 500, MACD crossover above single line, growth in profit with increasing profit margin and among others. 

The company has at least four negative, as the trendline,com; they are: High interest payments compared to earnings, declining net cash flow, book value per share deteriorating for last 2 years.