GUJARAT RECLAIM & RUBBER PRODUCTS LTD.

          GRRPL produces reclaim rubber from scrap of whole tyres, tread peelings, natural rubber tubes, butyl tubes, moulded rubber products for different applications in both, tyre and non tyre rubber products.

Largest manufacturer and exporter of reclaimed rubber in India.

RRP is the largest producer of Reclaimed Rubber in Asia and one of the top five producer in the world.

GRRP has in its portfolio the most number of grades of reclaim from synthetic rubbers such as Butyl, EPDM.

It has Capacity of 45000 mt/annum.

It Exports to 35 countries world over.

          GRRP produces reclaim rubber from scrap auto tyres and tubes, which are sourced locally through collection agents. GRRP also produces synthetic rubber reclaims such as Butyl reclaim, Nitrile reclaim, EPDM reclaim, Latex reclaim, Fluro-elastomer reclaim, etc as per availability of suitable waste.

It is a Consistently dividend paying company.

Global inclination towards recycling and pollution control orientation to help this company.

Any corporate actions such as bonus, raising further equity, increasing capital base, strategic investor, etc can give a trigger and popularity to the share in primary market.

The stock of the company is trading at a PE of around 9 calculated on the basis of last 5 year average EPS.

Promoter holding at 46.83%.

Equity capital is 1.33 crore.

Market capitalization at Rs.800 is 1064 crore.

Sale of company is 140 crores. However, the Mcap to Sales ratio is too high at 7.6 times.

For such a good business model, consistent sales and profit growth, consistency dividend paying company the stock price looks attractive. We recommend to invest at cmp for a 40% upward price target in next 8-12 months.