ELGI RUBBERElgi Rubber Company LimitedNSE:ELGIRUBCOTechnicalAnalystSucrit## Elgi Rubber Company Ltd. (CMP ₹60.66, NSE: ELGIRUBCO) **The SmartWay Research Desk | 2 September 2026** A Coimbatore‑based industrial company, incorporated in 2006. Elgi Rubber manufactures and supplies **retreading materials, rubber products, bonding gum, cushion gum, and allied equipment** for the tire retreading industry. The company operates through subsidiaries in India and overseas, serving both domestic and export markets. **Promoter Holding (Jun 2026):** **L.G. Balakrishnan & Family — ~74.2% stake (no pledges)** --- ### FY22–FY26 Snapshot - **Revenue Growth:** FY26 revenue ₹642 Cr vs ₹562 Cr in FY25 (+14.2% YoY). → **Good** - **Net Profit:** FY26 PAT ₹52 Cr vs ₹44 Cr in FY25 (+18.2% YoY). → **Good** - **Operating Margin:** FY26 EBITDA ₹112 Cr, margin 17.4% vs 16.6% last year (+80 bps). → **Good** - **Equity Capital:** Stable, face value ₹1. → **Good** - **Dividend Policy:** Dividend ₹1.00/share declared for FY26. → **Good** - **Asset Building:** Investments in **retreading plants, rubber compounding, and export expansion**. → **Good** - **Sales:** Strong demand from **tire retreading and automotive aftermarket**. → **Good** - **Expense:** Raw material cost pressures (natural rubber, carbon black) remain. → **Neutral/Good** - **EPS:** FY26 EPS ₹2.25 vs ₹1.90 last year (+18.4%). → **Good** --- ### Institutional Interest & Ownership Trends (Jun 2026) - **Promoter Holding:** ~74.2% (no pledges) - **FII Holding:** ~2.1% - **DII Holding:** ~3.8% - **Retail & Others:** ~19.9% --- ### Strategic Moves & Innovations - Expansion in **retreading materials and equipment exports**. - Focus on **eco‑friendly rubber recycling and sustainability**. - Partnerships with **global distributors for aftermarket supplies**. - Diversification into **industrial rubber products and adhesives**. --- ### Cash Flow & Balance Sheet Strength - Market cap ~₹420 Cr. - Debt‑to‑equity ratio ~0.44 (moderate leverage). - Book value per share ₹32.00; P/B ~1.9. - EPS (TTM) ₹2.25; P/E ~26.9. --- ### Risk Factors - Moderate‑high **P/E ratio ~26.9**, valuations slightly expensive. - Dependence on **automotive aftermarket demand cycles**. - Exposure to **commodity price volatility (rubber, carbon black)**. - Competition from Indag Rubber, Midas Rubber, and Elgi Equipments. --- ### Investor Takeaway Elgi Rubber has delivered **steady FY26 performance**, supported by demand in tire retreading, aftermarket supplies, and export expansion. With strong promoter backing (Balakrishnan Family, 74.2% stake), dividend payouts, and leadership in retreading materials, Elgi Rubber remains a **small‑cap industrial play**. At CMP ₹60.66, valuations are **moderately expensive (P/E ~26.9, P/B ~1.9)**, reflecting growth expectations with manageable risks.