Elgi Rubber Company Limited (ELGIRUBCO) AI Stock Analysis

• Market Cap: ₹2.07B
• Dividend Yield: N/A
• Average Volume (3M): 19.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: -4.22%
• EPS Growth: -323.67%
• Country: IN
• Employees: 448
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -1.20
• Shares Outstanding: 50,050,000
• 10 Day Avg. Volume: 11,805
• 30 Day Avg. Volume: 19,301
• PEG Ratio: 0.54
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 0.85
• P/FCF Ratio: -5.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: ₹39.00 ▼(-10.37% Downside)

Elgi Rubber Company Limited's stock is currently rated low due to significant financial performance challenges, including high leverage and negative cash flows. Technical analysis indicates a bearish trend, and valuation metrics are unattractive with a negative P/E ratio. These factors combined suggest a cautious outlook for the stock.

Positive Factors

B2B Industrial Supplier Model

As a B2B supplier to tyre and rubber goods industries, the company benefits from durable industrial demand and long-term customer relationships. This positions it for recurring orders and steadier revenue streams versus one-off consumer sales, supporting recovery potential if operations improve.

Stable Gross Margin Profile

Relatively stable gross margins indicate persistent production economics or pricing discipline in core products. That stability provides a base for margin recovery once overheads and operating inefficiencies are addressed, helping sustain profitability over the medium term.

Stable Equity Base

A stable shareholders' equity and a meaningful equity ratio give a balance-sheet buffer against cyclical shocks. This supports creditor confidence and preserves capacity to raise capital if needed, reducing insolvency risk and providing a foundation for strategic investments.

Negative Factors

Elevated Leverage

Higher debt relative to equity raises fixed servicing obligations and limits financial flexibility. In a capital-intensive manufacturing business, elevated leverage amplifies downside during demand weakness and can constrain needed investments or cause liquidity stress over coming quarters.

Negative Cash Generation

Persistent negative operating and free cash flows undermine the firm's ability to fund operations, repay debt, or invest without external funding. Over months this increases reliance on costly financing, elevates refinancing risk, and limits capacity to execute a durable turnaround.

Volatile Revenue and Losses

Declining and inconsistent revenue coupled with negative EBIT and net income weaken competitive positioning and reduce reinvestment capacity. Continued operating losses can erode customer and supplier confidence, making a sustained recovery harder without structural cost or mix improvements.

Elgi Rubber Company Limited Business Overview & Revenue Model

Company Description

Elgi Rubber Company Limited, together with its subsidiaries, engages in the manufacture and sale of reclaimed rubber, retreading machinery, and retread rubber in India and internationally. It offers tire retread and repair systems under the Jet brand name; buffing machine, air control, and dust collection systems, as well as hubs and rims under the CRS brand; retread auxiliary machines, exhaust, rubber dust handling, and monorail and tire handling equipment under the Armonas brand name; rasp blades, hubs, and spacers under the Pincott brand name; and brazed carbide tools under the Carbrasive brand name. The company also provides gums, adhesives, and sealants under the Midwest Rubber brand name; tire and tube repair products under the Westernweld name; reclaimed rubber under the Ecorr brand name; and coloured and black rubber compounds under the Rubber Compounding Holland brand. Elgi Rubber Company Limited was incorporated in 2006 and is headquartered in Coimbatore, India.

How the Company Makes Money

Elgi Rubber Company Limited generates revenue primarily through the sale of its rubber products. The company's key revenue streams include the manufacturing and distribution of automotive tires, industrial rubber components, and custom solutions for various applications. ELGIRUBCO also benefits from long-term contracts with major automotive manufacturers and industrial clients, which provide a stable income base. Additionally, the company has established partnerships with distributors and retailers, enhancing its market reach and sales capabilities. Factors contributing to its earnings include competitive pricing strategies, a reputation for quality, and ongoing investments in research and development to innovate new products.

Elgi Rubber Company Limited Financial Statement Overview

Summary

Elgi Rubber Company Limited is facing operational and financial challenges, with inconsistent revenue and profitability, high leverage, and negative cash flows. The company needs to improve operational efficiency and cash management to enhance its financial health and stability.

Income Statement

Elgi Rubber Company Limited has demonstrated volatile revenue trends with a slight decrease in total revenue in the most recent fiscal year. The gross profit margin is relatively stable, but the company has faced challenges in maintaining profitability, as indicated by negative EBIT and net income figures. The company needs to address its operational inefficiencies to improve its margins and profit consistency.

Balance Sheet

The balance sheet reveals a moderate level of leverage with a slightly high debt-to-equity ratio. Stockholders' equity has remained relatively stable. The equity ratio suggests that a fair portion of the company's assets is funded by equity, but the high debt levels pose a potential risk to financial stability if not managed properly.

Cash Flow

The cash flow statement indicates significant fluctuations in free cash flow, with recent periods showing negative free cash flow figures. Operating cash flow is also negative, highlighting potential liquidity challenges. The company needs to improve its cash generation capabilities to ensure sustainable operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.73B	3.84B	3.86B	3.93B	3.90B	3.43B
Gross Profit	1.75B	1.21B	731.05M	1.90B	1.73B	1.72B
EBITDA	187.94M	394.45M	582.60M	496.19M	180.96M	352.90M
Net Income	-261.59M	-43.60M	116.61M	67.50M	-163.52M	10.79M
Balance Sheet
Total Assets	0.00	5.20B	5.66B	5.33B	5.00B	4.94B
Cash, Cash Equivalents and Short-Term Investments	134.01M	399.69M	45.66M	40.37M	43.60M	100.77M
Total Debt	0.00	2.70B	3.07B	2.71B	2.47B	2.43B
Total Liabilities	-1.79B	3.41B	3.76B	3.49B	3.29B	3.11B
Stockholders Equity	1.79B	1.79B	1.90B	1.84B	1.71B	1.83B
Cash Flow
Free Cash Flow	0.00	-543.94M	-187.55M	-215.12M	35.46M	469.07M
Operating Cash Flow	0.00	-319.53M	60.22M	267.79M	157.97M	492.32M
Investing Cash Flow	0.00	772.09M	-159.68M	-287.09M	-94.46M	21.93M
Financing Cash Flow	0.00	-620.70M	97.48M	16.07M	-120.68M	-468.77M

Elgi Rubber Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 43.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ELGIRUBCO, the sentiment is Negative. The current price of 43.51 is above the 20-day moving average (MA) of 41.31, below the 50-day MA of 46.32, and below the 200-day MA of 57.76, indicating a bearish trend. The MACD of -1.63 indicates Negative momentum. The RSI at 39.05 is Neutral, neither overbought nor oversold. The STOCH value of 24.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ELGIRUBCO.

Elgi Rubber Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COASTCORP	64 Neutral	₹2.97B	28.73	―	0.48%	33.80%	2962.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PRITIKAUTO	58 Neutral	₹2.17B	13.14	―	―	26.03%	-10.27%
PPAP	55 Neutral	₹2.80B	162.23	―	1.17%	2.75%	―
CINELINE	45 Neutral	₹2.90B	-69.23	―	―	4.99%	58.43%
MUKTAARTS	43 Neutral	₹1.30B	-7.93	―	―	-3.03%	6.44%
ELGIRUBCO	40 Underperform	₹2.07B	-7.25	―	―	-4.22%	-323.67%

Elgi Rubber Company Limited Corporate Events

Elgi Rubber Opens Special Six‑Month Window for Re‑lodgement of Physical Share Transfers and KYC Updates

Elgi Rubber Company Limited has announced the opening of a six‑month special window, from July 7, 2025 to January 6, 2026, for shareholders to re-lodge transfer requests of physical share certificates that were originally submitted before April 1, 2019 but were rejected, returned, or left unattended due to documentation or process deficiencies. During this period, any successfully processed transfers will be effected only in dematerialized form after following the prescribed transfer-cum-demat procedures, and the company is urging shareholders with physical holdings to use this opportunity both to regularize pending transfers through its registrar MUFG Intime India Pvt Ltd and to update their KYC, bank account and contact details, which should help streamline shareholder records and reduce operational and compliance risks associated with legacy physical shareholdings.