Emerald Tyre Manufacturing Ltd. (ETML) is a well-established player in the indutrial tyre sector, specializing in off-highway tyre solutions for diverse applications such as forklifts, mining equipment, airport support vehicles, and more. Founded in 2002, the company has built a strong domestic and international presence under its flagship brand GRECKSTER.
ETML operates from a state-of-the-art manufacturing unit in Tamil Nadu (NS:TNNP), India, spanning over 10 acres with an impressive annual capacity of 10,560 metric tons of tyres, tubes, and wheels. Its flexible manufacturing processes allow it to cater to varied customer needs efficiently.
As a comprehensive industrial tyre solution provider, ETML offers a wide range of products backed by integrated end-to-end solutions, including Just-in-Time delivery. Its commitment to quality and global reach is evident in its extensive network of channel partners across multiple countries. These partners, meticulously selected for their market expertise and infrastructure, are further trained in ETML’s products and applications to deliver exceptional customer service.
To enhance operational efficiency and bolster OEM collaborations, ETML has established wholly-owned subsidiaries in Belgium and the UAE.
The company’s maiden IPO opens on December 5, 2024, and has closed on December 9, 2024. The book-built issue comprises 5,185,200 equity shares at a price band of INR 90–95 per share, aiming to raise up to INR 49.26 crore. It includes a fresh issue of 4,986,000 shares and an Offer for Sale (OFS) of 199,200 shares. Post-IPO, the paid-up capital will increase to INR 19.48 crore, valuing the company at INR 185.03 crore (upper band).
Proceeds will be used for capacity expansion (INR 36.34 crore) and general corporate purposes. GYR Capital Advisors Pvt. Ltd. is the lead manager, with Link Intime India Pvt. Ltd. as the registrar and Giriraj Stock Broking Pvt. Ltd. as the market maker.
ETML has demonstrated steady revenue growth with significant profitability improvements. From FY22 to FY24, revenue rose from INR 134.7 crore to INR 171.97 crore, while net profit surged from INR 4.85 crore to INR 12.14 crore. For the first four months of FY25, it reported a net profit of INR 4.14 crore on revenue of INR 64.93 crore.
With an average RoNW of 22.09% and robust PAT margins, ETML shows promise, though its IPO pricing at a P/E of 14.91 (FY25 annualized earnings) suggests it’s fully valued.
ETML's strong market presence, operational excellence, and promising financial trajectory make it an attractive medium- to long-term investment. However, cautious investors should weigh the fully-priced IPO against its growth prospects and dividend policy.
Read More: Not Sure About How to Pick Stocks? Here’s an Easy Way
X (formerly, Twitter) - Aayush Khanna
LinkedIn - Aayush Khanna