Modi Rubber Limited (MRL), incorporated in February 1971, is a B K Modi Group Company primarily engaged in the manufacturing of automobile tyres, tubes, and flaps. The company also manufactures and sells resin-coated sand and operates salons. Headquartered in New Delhi, India, MRL has a significant history in the Indian tyre industry.
The company entered into a technical collaboration with the German tyre major, Continental Aktiengesellschaft, to manufacture steel radial tyres for trucks. It established a state-of-the-art plant at Modipuram, recognised as one of the most modern tyre manufacturing plants in Asia.
Modi Rubber Limited operates across several business segments, with its core focus on automobile tyre manufacturing. Historically, the company was involved in the manufacture of automotive tyres, tubes, and flaps at its plants set up in 1974 at Modipuram, Meerut, and Modinagar. Currently, its operations span across real estate services, travel services, and others, alongside its primary tyre business.
The company has a strong manufacturing base with modern facilities. It had also set up facilities for automobile tubes and launched a new range of truck and LCV tyres. Following a restructuring through a Board for Industrial Financial Reconstruction (BIFR) scheme in 2008, the business operations of the Modipuram and Partapur Plants were vested in M/s Modi Tyres Company Pvt. Ltd.
Modi Rubber Limited holds a significant market presence, with a reported 12.4% market share. The company has demonstrated excellent export performance, supplying to countries such as Vietnam, the US, the UK, Bangladesh, Syria, and various Latin American nations. MRL is actively working on expanding its market reach and enhancing its technological capabilities. A strategic focus includes tapping into normal load areas like South India and West Zone with upgraded technology tyres to increase its market share.
The key leadership at Modi Rubber Ltd includes Vinay Kumar Modi as Chairman and Sanjeev Kumar Bajpai as Company Secretary. The company adheres to strong corporate governance practices, conducting regular board meetings and ensuring compliance with SEBI regulations.
- Market Cap: ₹345.53 Crore (as of recent trading data).
- Recent Data: Business Standard reported a market capitalization of Rs 323 crore, while Screener data indicated Rs 310 crore (up 28.2% in 1 year).
- Q3 FY2025 (December 2024):
- Net Profit: ₹6.19 Crore (a 10.73% increase from ₹5.59 Crore in Q3 FY2024).
- Revenue: ₹3.79 Crore.
- Annual Performance (FY2024):
- Revenue: ₹29.2 Crore.
- Profit: ₹15.53 Crore.
- Consolidated Performance (Quarter ended 2025):
- Total Income: ₹17.53 Crore.
- Profit: ₹1.16 Crore.
- P/E Ratio: 13.63 times (as of 13-May-2025), representing a 57% discount to its peers' median range of 31.73 times.
- P/B Ratio: 0.56 times (as of 13-May-2025), representing an 83% discount to its peers' median range of 3.21 times.
- Debt to Equity: A healthy ratio of 1%, indicating a strong balance sheet.
- Past 6 Months: Share price increased by 11.3%.
- Past 1 Year: Share price increased by 28.18%.
- 52-Week High: ₹163.90
- 52-Week Low: ₹87.25
- Promoter Holding: Stands at 62.7% (as per latest available data, stable from Mar 2025 to Jun 2024).
- Dividend Policy: Despite reporting profits, the company has not been paying out dividends.
Modi Rubber Limited is actively pursuing expansion plans and strategic investments. The company is in discussions with potential NRI investors for an investment of ₹810 million, pending final approval. This capital infusion is expected to bolster the company's market position and support future growth initiatives.
A board meeting is scheduled for 30 May 2025 to approve and publish the audited standalone and consolidated financial results for FY 2024-25.
Modi Rubber Limited continues to be a notable player in the Indian automobile tyre manufacturing sector, leveraging its technical collaborations, export capabilities, and a focus on technological upgrades to expand its market share across diverse geographical regions.
