Rubber Manufacturer Bags New Orders Worth Rs 2,39,41,069.09 From Indian Railways; Krishna Profiles and Defrail Technologies Ltd

The stock is up by 61.5 per cent from its 52-week low of Rs 308.75 per share.

Gayatri Rubbers and Chemicals Limited has secured new orders totalling an impressive Rs 2,39,41,069.09 from various domestic entities. A significant portion of this comes from the Ministry of Railways – Indian Railways, which awarded a contract worth Rs 84,37,334.09 for the supply of rubber packing and rubber profiles. This order is to be executed within 90 days from the purchase order date, adhering to standard industrial terms. The company also received an order from Krishna Profiles for Rs 24,01,300, involving the supply of EPDM rubber sheets, rubber compound, and other sheets, with a 60-day execution period.

Further bolstering its order book, Gayatri Rubbers and Chemicals Limited also bagged a substantial contract from Defrail Technologies Limited. This order, valued at Rs 1,31,02,435, is for the supply of EPDM rubber sheets, rubber compound, and various other sheets. Similar to the Krishna Profiles order, this contract also has a 60-day fulfillment period from the date of the purchase order, aligning with typical industrial conditions. These new orders highlight Gayatri Rubbers and Chemicals Limited's continued strong presence and demand for its products within the domestic market.

About the Company

Gayatri Rubbers and Chemicals Limited (GRCL), formerly the proprietorship firm M/s Goyal Rubbers, is a leading manufacturer and supplier in the rubber industry. They produce a variety of rubber products, including rubber profiles, aluminium rubber profiles, automobile rubber profiles, rubber compounds, and clear PVC profiles. GRCL supplies its rubber compounds to other manufacturers and distributes its products to key players like Banco, Nalco, and Jindal in the aluminium sector, as well as agents of Motherson Sumi and state transport in the automobile sector. The company sources its raw materials from across India, including natural rubber and EPDM rubber from Kerala, calcium carbonate and chalk powder from Gujarat, and zinc and other goods from Delhi NCR.

The company has a market cap of over Rs 270 crore with a PE of 115x, an ROE of 15 per cent and an ROCE of 22 per cent. The stock is up by 61.5 per cent from its 52-week low of Rs 308.75 per share.

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