Saturday, July 2, 2011


Indag Rubber is a Khemka Group company mainly engaged in the manufacturing of tread rubber for auto sector.  It makes  pre-cured tread rubber (PTR), rubber strip gum, universal spray cement and tyre envelops ..etc  Company having two manufacturing units , one in Himachal Pradesh and other in Rajastan . Indag is the company which introduced cold retreading technology in India . Company's financials are strong with minimum debt and higher promoter stake. Last year company expanded its capacity at Himachal unit and current capacity from this unit alone is 1200 ton tread rubber and 1800 ton rubber gum. Cost of raw material was a big problem for this company in recent past . But the US decision to discontinue the easy money policy for the time being is expected to bring down commodity prices in near future. Natural rubber prices are showing some weakness and it it expected to show this trend in coming months .If this trend continuous ,  it will surely help Indag to improve its margins. For the financial year ended March 2011 , Company posted a turnover of Rs.150 Cr and a net profit of Rs.11 Cr.Full year EPS was Rs.20 . At CMP of Rs.95 , Indag is trading at a P/E multiple of  just 4.75  which is a risk less bet at CMP . Keep watching the  movement of the cost of raw materials closely.


  1. why sacheta metal only falling?
    Anything wrong?

  2. Dear KH
    I have recommended to keep an eye on sachetha when it was & Rs.22 and it is currently at Rs.18.05 . One can take a decision after first qtr result whether to enter or not

  3. Dear VP,
    In case of few stocks, BSE site there is a dollar ($) sign suffixed to the scrip name. Could you tell what does it signify?

    Incidentally, in case of Indag Rubber also the same dollar sign is appearing after the scrip name.

    regards, Amit

  4. Dear Amit

    $ sign is for scrips shifted from ' S' group ( Indo next)

    For more details about Indonext ,check the below link

  5. If the rubber prices go up again, will profits of Indag Rubber go down? or Up? is
    the company unaffected by rubber prices?

  6. hello valuepick i track ur blog and is very good one want to hear about hbl power bought it at 26.5 10000 shares now worried as price is falling i can wait for 5 to 10 yrs ur study regarding hbl power do reply

  7. Sure, If NR prices rise beyond a certain level , margins will be affected

  8. Management is not very bad. But I personally feels that the stock split was un necessary. Keep watching the price of Lead , Nickel and silver . Not expecting much downside from here.

  9. This Quarter result is fantastic - Do you suggest to buy more ?



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