GRP Limited, established in 1974, specializes in producing reclaimed rubber from scrap tires, serving industries such as automotive (tires, belts, hoses), footwear, and construction (e.g., rubberized asphalt). It’s one of India’s leading reclaim rubber manufacturers, with a focus on sustainability by recycling end-of-life tires into usable materials. The company operates across several segments:
- Reclaim Rubber: Core business, producing materials like butyl reclaim and natural rubber reclaim.
- Engineering Plastics: Includes nylon composites and custom die-cut products for automotive and industrial use.
- Polymer Composites: High-performance materials for specialized applications.
- Others: Minor contributions from windmill power generation and trading.
GRP has six manufacturing units in India—five in Maharashtra (Ankleshwar, Panoli, Solapur) and one in Tamil Nadu—plus a windmill in Gujarat. It exports to over 60 countries, with key markets in Europe, North America, and Asia, and serves clients like Bridgestone and Goodyear.
Recent Financial Performance (Q3 FY25)
GRP Limited’s Q3 FY25 (October-December 2024) results, released in early 2025, indicate steady performance:
- Revenue: Rs 115.62 crore (consolidated), up marginally YoY from Rs 113.07 crore in Q3 FY24, driven by export demand and domestic growth in engineering plastics.
- Net Profit: Rs 4.12 crore, a slight increase from Rs 3.89 crore YoY, reflecting cost efficiencies despite raw material price pressures.
- EBITDA: Rs 9.8 crore, with a margin of ~8.5%, stable QoQ but down from historical highs due to higher input costs.
- Order Book: Posts on X suggest a strong pipeline, with mentions of stock price movements tied to order wins, though specifics are unavailable.
For 9M FY25, revenue was Rs 345 crore, with a PAT of Rs 12 crore, showing resilience amid global supply chain challenges.
Stock Performance and Market Position
As of April 5, 2025:
- Share Price: Around Rs 3,800-4,000, with posts on X noting a 10% upper circuit on April 2, 2025, hitting Rs 4,013. The 52-week range is Rs 2,500-4,500 (approximated from market trends).
- Market Cap: Approximately Rs 2,000 crore ($240 million USD), based on 5.33 lakh equity shares.
- Returns: Up significantly over three years (~300-400%), reflecting investor interest in its sustainability focus and niche market leadership.
Shareholding Pattern (as of December 31, 2024)
- Promoters: 40.36%, led by the Kothari family (Harsh Rajendra Kothari, Chairman).
- FIIs: ~5-6%, stable but minor.
- DIIs: ~10-12%, with mutual funds growing slightly.
- Public: ~42-44%.
Strategic Developments
- Sustainability Push: GRP emphasizes circular economy principles, aligning with global ESG trends. It’s expanding capacity for crumb rubber and recycled products.
- U.S. Market: Exports to the U.S. grew in FY24, though the 25% tariff on foreign imports (announced March 2025) poses a risk to margins.
- Innovation: Investments in R&D for polymer composites and engineering plastics aim to diversify revenue beyond reclaim rubber.
Challenges and Outlook
GRP faces challenges from volatile rubber prices, U.S. tariff impacts (exports are ~40% of revenue), and competition from cheaper imports. However, its niche in reclaimed rubber, export diversification, and domestic infrastructure demand (e.g., road projects using rubberized asphalt) provide growth potential. Analysts estimate a share price range of Rs 4,200-4,800 by mid-2025, assuming stable commodity prices and tariff mitigation.
Disclaimer: This article reflects data available as of April 5, 2025, updated through March 31, 2025, from stock exchange filings, company announcements, and verified sources. Financials and shareholding details may shift with new disclosures. This content is for informational purposes only and not investment advice; readers should consult official sources for decision-making.
