Govind Rubber

A part of the Siyaram Poddar group, the company makes bicycle tyres. Thanks to the lower rubber costs, the company has posted a good set of numbers for Q2FY15. Despite a 16% (YoY) drop in net sales at Rs.103 crore, the company ended the quarter with a huge bump up in net profit at Rs.2 crore, up from Rs.36 lakh in previous Q2 and a turnaround from a loss of Rs.1.7 crore on QoQ. This was only on account of the 17% drop in total operating costs and 65% if the cost, coming from raw material cost, which is mainly rubber, was down 16%.

Promoters currently hold 53.57% stake in the company and there is no FII holding in this small cap stock. For a company of this size, equity is pretty steep at Rs.22 crore. Market cap stands at Rs.52 crore.