Innovative Tyre & Tube :- (Kid of CEAT) NSE SME

INNOVATIVE TYRES & TUBES LIMITED

CMP 54

NSE SME

SYMBOL :- INNOVATIVE
LOT :- 3000

COMPANY OVERVIEW :-

Innovative Tyres & Tubes Limited was originally incorporated as a public limited company on 28th November 1995 at Mumbai, Maharashtra. The certificate of Commencement of Business was granted by Registrar of Companies, Maharashtra on February 08, 1996. The Company changed its registered office Maharashtra to Gujarat on April 27, 2016. Mukesh Desai and Pradeep Kothari are the Promoters of the Company.

Chandravadan Shah, Narendra Shah, Kalpesh Shah, Ashvinkumar Mehta, Sanjay Mankad, Minakshi Mankad, Girish Patel and Bipin Mankad were the initial subscribers of the Company. Mukesh Desai and Pradeep Kothari acquired shares through purchase of shares in various tranches from shareholders and also through preferential allotment.

Innovative Tyres is a tyre and tube manufacturing Company, manufacturing & marketing products under our flagship brand Innovative. The Company started its journey with the acquisition of a greenfield project situated at Halol (Originally that Company wras known as Super Strong Polymers Private Limited) in auction from Gujarat State Financial Corporation and State Bank of Bikaner & Jaipur vide agreement dated December 15. 1995. Thereafter, the company revamped the closed company to their tube manufacturing facility at this property and started manufacturing of tubes in the year 1996. Within a short time after their inception, it was able to successfully get its facility approved by CEAT Limited for carrying out job work activities for them.

As a result of strong business relationship with CEAT Limited, taking the relationship to the next level wre set up a greenfield tyre project as a major outsourcing unit in 2003 in a close vicinity of the existing first tube plant in Halol only. The company has an installed production capacity of 12,000 MT of tubes and tyres. Taking a leaf of learning of tyre manufacturing with two-three-wheeler tyre segment, the company graduated over a period of 15 years into manufacturing of practically all segments of Nylon Tyres.

WHY CALLED AS KID OF CEAT :-

Company is doing business with CEAT from more than 20 years.

Source :- DRHP

Innovative tyres offers wide range of products from Truck/Bus, car to Agricultural totwo-wheelers, 3-wheelers/

http://www.innovativetyres.com/product

EXPANSION PLAN :-

COMPANY CAME WITH PUBLIC ISSUE IN SEPTEMBER 2017 WITH ISSUE PRICE OF 45 RS.

THE OBJECT OF THE ISSUE WAS EXPANSION OF EXISTING FACILITIES.

THE PROPOSED EXPANSION PLAN AND SCHEDULE IS MENTIONED HEREWITH.

SO AS PER THE DRHP AND COMPANY DECLARATION THE COMMENCEMENT OF CONSTRUCTION OF BUILDING WILL COMPLETE AROUND FEBRUARY 2018.

AND TRIAL RUN ESTIMATED TO COMPLETE IN MAY 2018.

IF ALL SUCCESSFULLY COMPLETED AND TRIAL RUN WILL OK THAN NEW PLANT OPERATION WILL BE DONE FROM JUNE 2018.

MEANS Q1FY19 AND Q2 FY19 WILL BE BENEFICIAL FOR THE COMPANY.

Source :- DRHP

COMPANY'S 44% BUSINESS COMES FROM EXPORT..HERE IS THE LIST OF EXPORTING COUNTRIES.

CLIENTS :- 

CAPACITY UTILIZATION :- 

COMPANY IS FULLY DEDICATED TO CAPACITY UTILIZATION. IF WE CAN SEE THE FIGURES THAN WE CAN UNDERSTAND THAT 20-25% CAPACITY WILL BE INCREASE WITHIN 2 YEARS..

ALSO PRESENT EXPANSION CAN USEFUL FOR CAPACITY UTILIZATION.

💢 FINANCIALS  :- ANNUAL RESULT :- 

Source :- DRHP

On performance front, ITTL has posted turnover/net profits of Rs. 126.58 cr. / Rs. 2.26 cr. (FY14), Rs. 130.52 cr. / Rs. 4.12 cr. (FY15), Rs. 125.90 cr. / Rs. 1.89 cr. (FY16) and Rs. 132.54 cr. / Rs. 4.08 cr. (FY17). Thus it has seen see-saw mode in top and bottom lines for last four fiscals. For last three fiscals, it has posted an average EPS of Rs. 3.15.

RECENT BLOCK DEALS :-

SOME VALUE INVESTORS ADDED GOOD QUANTITY OF STOCK IN THEIR PORTFOLIO.

INVESTORS HAVE ADDED AT HIGHER PRICE , WHILE STOCK IS AVAILABLE AT VERY CHEAP RATE OF RS. 50...ISSUE PRICE WAS 45..

IN LONGER TERM INVESTORS CAN SEE THIS STOCK IN THREE FIGURES.

Presentation by Mr Mukesh Desai(CMD-Innovative Tyres & Tubes Ltd) at SME Emerging stars conclave

Innovative tyres Ltd | Know Your Company by Markets Guruji

INVESTMENT RATIONALE:-

1. Company has very good business relation with CEAT over 2 decades. Might at some point of time company can take over by CEAT.

2. 44% of the revenue comes from Export business.  small company exports in more than 45+  countries. This is unique.

3. Company has wide range of products which suits wide customer demand.

4. Present expansion plan extend its capacity utilization and financial growth.

5. Recent bulk deals also attractive.

6. Investors have invested at very higher levels of around 60-70 Rs. while issue price was 45 Rs. Stock is available at very cheap value of 53 Rs.

7. Company also enjoy strong IR relationship,professionally expertise team, having heads of operations,marketing technology,finance,with technical & professional qualifications & expertise in field. 

8. The company is working closely with a leading international tryre manufacturer to supply them tyres for entire COMESA union of 17 countries...it can be a game changer.

9. The company with increased own products can do rs14cr pat in fy19 and rs25cr in fy20....this is just a beginning....with increased spending on mining agriculture and presence in COMESA can turn the fortune of the company.

HAPPY INVESTING

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THE ABOVE IS NOT A RESEARCH REPORT NOT BUY/SELL RECOMMENDATION AND THIS IS ONLY FOR EDUCATIONAL PURPOSE , AND SOME OF MY FINDINGS FROM OPEN SOURCE. ONE CAN CONSULT THEIR FINANCIAL ADVISER BEFORE INVESTING.

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Happy Investing

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NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

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