Tolins Tyres IPO Review

Tolins Tyres, founded in 1982 as an small scale industry unit, has emerged as a leading producer in the tire industry, specializing in a diverse range of products. Their portfolio includes two and three-wheeler tyres, Light Commercial Vehicle (LCV) tyres and Agriculture tyres.
 
The Company's Chairman and Managing Director, Dr. Kalamparambil Varkey Tolin, has been an integral part in the establishment and growth of their Company and with over three decades of experience in the rubber, tread rubber and tyre manufacturing industry, he has been instrumental in their continued growth.

Financially, Tolins Tyres revenue is stable from ₹1,143.86 Millions in FY22 to ₹1,196.79 Millions in FY23 and currently increased to ₹2,286.93 Millions in FY24. Similarly, EBITDA is stable from from ₹60.90 Millions in FY22 to ₹122.61 Millions in FY23 and currently at ₹463.74 Millions in FY24. The PAT also stable from ₹6.31 Millions in FY22 to ₹49.92 Millions in FY23 and currently at ₹260.06 Millions in FY24. This indicates a steady financial performance.

For the Tolins Tyres IPO, the company is issuing shares at a pre-issue EPS of ₹9.52 and a post-issue EPS of ₹6.58. The pre-issue P/E ratio is 23.74x, while the post-issue P/E ratio is 34.34x against Industry P/E ratio is 34.17x. The company's ROCE for FY24 is 36.08% and ROE for FY24 is 25.87%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Tolins Tyres potential listing gains of 28% - 30%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the Tolins Tyres Limited IPO for Listing gain or long term investment purposes.