Company Overview

Lead Reclaim & Rubber Products Limited (LRRPL) was originally incorporated on October 31, 2012, as "Lead Amber Microtech Limited" with the Registrar of Companies, Ahmedabad, Gujarat. The company name was later changed to Lead Reclaim and Rubber Products Limited on December 28, 2013. Established in 2012 and proudly listed on the NSE Emerge, LRRPL is a centre of innovation based in Ahmedabad, Gujarat, India. The company is engaged in the manufacturing of reclaimed rubber, crumb rubber powder, and rubber granules.

LRRPL champions a sustainable approach to rubber manufacturing by focusing on recycling and reclamation processes. The company's core objective is to save valuable natural resources through recycling and to assist customers in achieving their circularity goals by utilizing reclaimed rubber products. This strong environmental focus positions LRRPL as a key player in the circular economy within the rubber industry.

Business Operations and Manufacturing

Currently, all manufacturing operations are conducted at the company's production facility located in Kathlal, Kheda district of Gujarat. This facility has a total installed capacity of 5,520 metric tons per annum for processing nylon tire scrap, butyl tube scrap, natural tire scrap, and radial tire scrap. The company has demonstrated consistent growth in its production capabilities, having increased its rubber production capacity from 250 MT per month to 450 MT per month. Furthermore, LRRPL installed a Radial tyre crumb & reclaim plant at its factory in 2024, enhancing its processing capabilities.

Product Portfolio

The product portfolio is diversified, offering various grades, thicknesses, widths, and standards of reclaimed rubber. LRRPL's offerings are categorized into specialized products:

- Whole Tyre Reclaim Rubber: Offered in four flagship grades: LEAD WTRHT (High Tensile), LEAD WTRHR (High Resilience), LEAD WTRSF (Super Fine), and LEAD WTR FINE.

- Butyl Tube Reclaim Rubber: Grades include LEAD BTR and LEAD BTRHT.

- Natural Tube Reclaim Rubber: Grades include LEAD NR and LEAD NRHT.

Market Presence and Customer Base

LRRPL serves a wide range of industries, including the tire industry, automotive sector, construction industry, footwear manufacturing, and other miscellaneous sectors. The company has established a significant presence in both domestic and international markets. Its customers include Original Equipment Manufacturers (OEMs), Tier-1 companies in the automotive sector, distributors, and dealers.

Internationally, LRRPL's markets include England, the United States, Australia, China, Argentina, Turkey, Sweden, Thailand, Sri Lanka, and Bangladesh. The company also supplies its products to foreign buyers located in Sri Lanka, Argentina, Turkey, and China through merchant exporters.

Financial Performance and Market Position

In February 2023, the company launched an IPO with a fresh issue of 19,50,000 Equity Shares of face value Rs 10 each, raising funds of Rs 4.88 Crore. The company's market capitalization reflects its growth trajectory. As of May 22, 2025, 03:16 PM, the market capitalization of Lead Reclaim & Rubber Products Ltd stood at Rs. 52.75 Cr.

Key Financial Metrics (as of May 2025):

- Revenue: ₹19.0 Cr

- Profit: ₹0.72 Cr

- PE Ratio: 144.88 (as of May 22, 2025)

- PB Ratio: 0.35 (as of May 22, 2025)

Stock Performance

The 52-week high for Lead Reclaim & Rubber Products Ltd share price is Rs. 121.65, while the 52-week low is Rs. 28.65. The stock has experienced significant volatility over the past year. Over the last 6 months, the LRRPL share price has decreased by 34.53%, whereas in the last year, it has shown an increase of 90.19%.

Shareholding Pattern

Promoter holding in Lead Reclaim & Rubber Products Ltd decreased to 59.48% as of March 2025, down from 63.67% as of March 2024. This slight reduction in promoter holding indicates some dilution, although promoters continue to maintain a controlling stake in the company.

Industry Position and Sustainability Focus

LRRPL operates within the sustainable manufacturing sector, actively contributing to environmental conservation through rubber recycling. Although the company consistently reports profits, it has not paid out dividends, suggesting a strategy of reinvesting profits back into business expansion and capacity enhancement. LRRPL's commitment to sustainability and circular economy principles positions it advantageously in an increasingly environmentally conscious market, making it an interesting proposition for investors focused on sustainable manufacturing businesses within the specialty chemicals and rubber processing sector.