High ROCE high ROE multibagger stock; Board announced bonus shares and stellar quarterly results!

Shares of this company have gained more than 80 per cent in the last six months.

On 29^th July 2023, Tinna Rubber and Infrastructure Limited informed in the exchange filing that the company’s board has approved and recommended the issue of equity bonus shares in proportion of 1:1 i.e., 1 (One) equity share of Rs 10/- each for every 1 (One) existing equity share of Rs 10/- each held by the shareholders of the company as on record date.

The company also reported results for the first quarter ended June 30, 2023 (Q1FY24). The revenue of the company for Q1FY24 stood at Rs 80.63 crore which grew by 10.87 per cent on a QoQ basis, while on a YoY basis, the revenue declined by 1.84 per cent. The net profit of the company stood at Rs 7.02 crore, growing 16.39 per cent YoY.

Tinna Rubber and Infrastructure Limited (TRIL) was incorporated on 4th March 1987. TRIL is a specialty materials company that uses environment-friendly technologies to transform rubber from end-of-life tyres into materials for new tyres and other rubber-based industrial products & applications. The products are primarily used for making & repairing roads, tyres, and the auto part industry.

Tinna Rubber and Infrastructure Limited have delivered multibagger returns to its shareholders in the last one year. During this period, shares of Tinna Rubber surged from Rs 368.10 on August 01, 2022, to Rs 727.75 on July 28, 2023, an increase of about 110 per cent in a one-year holding period. 

The company has a ROCE of 23.8 per cent and an ROE of 25.1 per cent with a market capitalisation of Rs 623 crore. Investors should keep a close eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.