Indag Rubber Ltd

Indag Rubber maintains a strong liquidity position with a current ratio of 3.82, indicating the company can cover its short-term liabilities more than three times over. However, the company's cash and equivalents of INR 8.08 million are significantly lower than its long-term debt of INR 93.87 million, resulting in a negative net cash position [doc:IDGR.BO-2026-04-15]. The company's return on equity of 2.87% and return on assets of 2.37% suggest modest profitability relative to its equity and asset base [doc:IDGR.BO-2026-04-15]. The company's operating income is negative at INR -261,000, indicating operational challenges despite a net income of INR 65.32 million. This discrepancy may be due to non-operational gains or cost adjustments. The gross profit of INR 577.24 million represents 25.27% of total revenue, which is a key metric for the Tires & Rubber Products industry [doc:IDGR.BO-2026-04-15]. Indag Rubber's revenue is concentrated in two primary segments: Precured Tread Rubber and allied products/services, and Electronics including green energy storage. The Precured Tread Rubber segment is the core business, serving a broad range of tire retreading applications. The company's geographic exposure is primarily within India, with manufacturing plants in Solan, Himachal Pradesh, and Alwar, Rajasthan [doc:IDGR.BO-2026-04-15]. The company's growth trajectory is mixed. While the current fiscal year (FY) shows a net income of INR 65.32 million, the operating cash flow of INR 32.8 million and free cash flow of INR -15.37 million indicate cash flow constraints. Capital expenditures of INR -38.6 million suggest ongoing investment in infrastructure or equipment, which may support future growth [doc:IDGR.BO-2026-04-15]. The risk assessment highlights a medium liquidity risk due to the negative net cash position after subtracting total debt. The dilution risk is low, with no significant dilution potential identified in the basic shares outstanding. The company's debt-to-equity ratio of 0.04 indicates a conservative capital structure with minimal leverage [doc:IDGR.BO-2026-04-15]. Recent events and filings do not indicate any major operational or financial disruptions. The company's focus on tire retreading and green energy storage suggests a strategic move towards sustainable and diversified revenue streams. However, the negative operating income and free cash flow raise concerns about the company's ability to sustain operations without external financing [doc:IDGR.BO-2026-04-15].