Best Rubber Stocks to Buy in India – List of Top 10 Rubber Industry Shares of 2024Last Updated Date: Jan 02, 2024
This article will read about the Best Rubber Stocks to buy in India.
We have analyzed multiple Rubber Companies in India and then shortlisted the top ten rubber companies whose stocks are worth buying.
Apart from these ten, we have a few other rubber stocks on the list that also hold the excellent potential to provide higher returns.
The article below will talk about the stocks and the procedure of finding and buying these stocks. So, this will be a complete guide for the investors looking to invest in rubber stocks/ industry in India.
Know about Rubber Sector in India
Before you start getting into the details of Top Rubber Companies in India, every investor needs to evaluate the rubber industry and its opportunities for the upcoming years. Global rubber production has been unstable during the past few years.
However, there has been a steady growth in this market in India. While India is the 3rd largest consumer of rubber globally, it is the largest natural rubber producer in the world as well.
In India, there are traditional and non-traditional zones for rubber production. The traditional zone includes Kanyakumari in Tamil Nadu and the Districts of Kerala.
The non-traditional zone includes Karnataka, Goa, Orissa, Andhra Pradesh, a few parts of Maharashtra, Tripura, and other northeastern parts, and Andaman and Nicobar Island.
Before you finalize which Rubber Sector Stocks to buy, you must do a top-down analysis analyzing the economy, followed by the rubber industry, and finally the companies to choose the best stocks.
We are here to help you out in this process as we have also chosen a few of the best rubber stocks to invest in 2022.
Best Rubber Stocks in India – List of Top 10 Rubber Sector Stocks to Buy Today
Check out the Rubber Share Price & Ranking of Best Rubber Shares to buy Today or Tomorrow or for Long Term –
We have analyzed multiple factors such as market capitalization, 52-weeks highs and lows, one year and six months returns, and other factors to choose these Best Rubber Shares in India.
We have ranked these Rubber Products Shares to Buy according to the market capitalization.
As per our rankings, India’s top three rubber stocks are Apcotex Industries Ltd., Pix Transmission, and Rubfila International.
Apart from these three, there are other twelve stocks that we will talk about in this article. But, first, we will discuss the companies, their products, previous returns, and why you should buy these stocks in detail.
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Apcotex Industries Ltd. – Rubber Shares to Buy
The first Rubber Shares to Buy on our list is Apcotex Industries Ltd.
This company is one of the leading producers of carboxylated sb latexes, acrylic latexes, SBR latex, high styrene resin, VP latex, nitrile latex, and other rubber products.
It started as a division of Asian paints in 1980. In the 1980s, it pioneered the production of vinyl pyridine latex. At present, it produces an array of products as named above.
It is one of the rubber-producing companies which maintains the best safety and environment for the workers and other people.
It has state-of-the-art infrastructures and plants with huge capacity. For example, the Taloja latex plant can produce 65000 MT latex per year, while the Valia Rubber plant has an enhanced capacity of 21000 MT per year.
Why should you buy Apcotex Industries Ltd. shares?
The reasons for buying this Best Latex Stock in India can be the following:
- The first reason investors would look for is the growth of TTM EPS. The growth has been phenomenally high in the past years. Even if you compare the annual growth in EPS of the company, it is growing exceptionally well.
- The return provided by the company to the shareholders in the past year is around 134.25% which is one of the highest in the industry.
- The quarterly returns are also up to the mark and increasing with time.
- The returns, the profit margins, and net profits are increasing over time, especially if you compare the quarterly results.
- Apcotex Industries ltd. has low debt, which is another added benefit for the company’s shareholders.
- Another positive sign for the investors is the increasing FII/ FPI investment in this rubber company. This signifies their growing interest and potential growth of the company in the future.
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Pix Transmission – Rubber Stocks in India
Pix Transmission was incorporated in the year 1981 at Nagpur.
It used to produce wrap belts then, and now the product line of this firm has an array of rubber products, including V-belts, ribbed/ poly V-belts, banded belts, Special belts, lawn and garden belts, and other products.
Pix Transmission is one of the fastest-growing global leaders in power and fluid transmission. It produces all these rubber and other products mainly for the industrial and automotive industries.
Why should you buy Pix transmission shares?
The reason for buying these Rubber Stocks in India can be the following:
- The company has a very strong fundamental analysis portrayed by the high Piotroski score. A company with solid fundamentals indicates a management’s stronghold and efficiency at work. It also indicates the potential growth of the company and higher returns for the investors.
- Increasing FII and FPI investment suggests that the firm’s potential is excellent to attract foreign investors. This suggests that this company’s stocks can be a good buy.
- The strong growth in EPS of the firm indicates the potential of the firm to provide higher returns to the investors. The past financial year provided a whopping return of 278.96%, which is the second-highest in the industry. If you are looking for the best latex shares to buy which provide such high returns, Pix Transmission can be a great pick.
- The book value per share of the firm has also been increasing over the past two years.
Rubfila International – Top Rubber Sector Stocks
The third Top Rubber Sector Stocks is Rubfila International Ltd. This company is one of the most popular companies in the rubber industry.
It produces both Talcum coated and silicon-coated rubber threads, which no other rubber company does in India. The products of the Rubfila are famous across the globe, not just in India.
There is an array of products that this firm produces, which includes food grade rubber thread, furniture grade rubber thread, superheat resistance latex products, coloured rubber thread, and a lot more.
It supplies its products to multiple industries such as footwear, automotive, racing and foam, the wooden sector, and a lot more. The head office and the main manufacturing plant are in Palakkad, Tamil Nadu.
In addition, it has a new factory in Udumalpet in the same state from 2020. In both these plants, there is such provision that they do not need to purchase or lease any other locations for the next fifty years.
Why should you buy Rubfila International Ltd. shares?
The reason for tracking the Rubfila International Ltd Share Price and buying it can be any or all of the following:
- Firstly, the company produces so many products and supplies to various industries that it cannot get affected by a slowdown in any particular industry. This is one of the most significant advantages for the company and the investors/ shareholders of the company.
- Secondly, in the last two years, the company’s net cash flow has been improving. This is a positive sign of the growth of the firm.
- Promoters are increasing their shareholding in the firm, which indicates the firm’s growth potential.
- Rubfila International runs on its funds; there is no debt at all. This is an excellent advantage for the company as well as the shareholders.
- The firm provided a return of around 76.56% in the past year.
- The RoCE is high, which indicates the company can generate returns on the capital employed, which is a good sign for the stakeholders.
Cupid Limited – Top Rubber Companies in India
Cupid Ltd. is our fourth pick for the Top Rubber Companies in India. It produces various products ranging from male condoms to lubricants and other similar products.
Why should you invest in Cupid Ltd. shares?
The company has been growing at a rapid pace, and there are several reasons to track and invest in this Rubber Share Price:
- There has been an increasing shareholding of the FII and FPI in this company. This indicates the growth potential of the firm.
- There is a Zero promoter pledge at this company.
- The company’s book value has been improving for the last two years.
- The cash flow for operating activities has been improving, which is the main force behind increasing the net cash flow statement.
- The company runs without any debt.
- The TTM EPS is 19.93, which is quite impressive, and the TTM PE is 10.73 higher than the sector PE of 9.76.
Elgi Rubber Co. – Top Rubber Products Stocks in India
The fifth Top Rubber Products Stocks in India is Elgi Rubber Co. This company manufactures procured tyre treads, cement, cushion compounds, envelopes, and other products.
It also produces a lot of tyre and tube repairing items such as bias repair units, radial repair units, combination and universal repair units, and a lot more.
Why should you buy Elgi Rubber Co. shares?
The reasons for monitoring and buying this Rubber Products Share Price can be the following:
- Its rising cash flow from operations pushes the net cash flow to improve.
- The annual profit has improved for the last two years.
- The company has been reducing its debt for the last few years.
- The EPS has been growing.
- TTM PE is way higher than sector PE. While the sector PE is only 18.49, the TTM PE is 131.25.
- There is increasing investments from FII and FPIs.
- Solid financials and fundamentals are technical indicators of good management of the company. It is indicated by the high Piotroski score of 7.
- Reported a return of 88.32% in the past year, which is enticing for the investors.
- It also outperformed the Nifty 50 in the last month.
Indag Rubber – Top 10 Rubber Stocks
The sixth rubber company stocks out of the Top 10 Rubber Stocks is Indag Rubber.
This company produces procured tread, full skirt envelopes, URSG- Unvulcanized Rubber Strip Gum, USC- Universal Spray cement, Export products, and a lot of other similar items.
The company was incorporated in 1978, which marks more than 44 years of legacy. India is known for its cold retreading technology in the country.
It saves a lot of cost for both the company and the end consumers and saves the world and the environment as well.
Why should you invest in Indag Rubber shares?
The reasons for investing in this Rubber Share Price may be the following:
- The increasing net cash flow of the firm, especially from the operating activities, is a good sign of growth.
- There is no debt that this company has at present, which is another positive sign of great utilization of capital and available resources.
- The company has zero promoters pledge.
- The net profit has been increasing along with the profit margin on a quarter to quarter basis.
GRP – Best Rubber Stocks to Buy
GRP is the seventh Best Rubber Stocks to buy as per our findings.
The company is quite popular in the rubber industry and engaged in producing rubber from a scrap of whole tyres, natural rubber tubes, tread peelings, moulded rubber products for varied applications, and other products.
It was started in the year 1974, which makes it an organization with close to 50 years of experience and market presence.
Its primary five vertical operations are reclaimed rubber; custom die forms, rubber composites, industrial polymers, and retreading.
Why should you invest in GRP Ltd. shares?
The reasons are many for investing in this Rubber Share in India:
- The price of GRP Ltd. stock has been trading with solid momentum as indicated by the price trading above short, medium, and long-term investment moving averages.
- GRP Ltd. as a company has no or Zero promoters pledge
- The strong EPS growth, especially on a QoQ basis, is phenomenal. The TTM EPS is also growing.
- The net cash flow is increasing, mainly due to the increase in the cash flow from operating activities.
- The profit margin has been increasing along with the firm’s net profit.
- TTM PE of 21.57 is more than the sector PE of 18.49.
- TTM EPS is at 67.51, which is relatively high
- The firm has provided a return of 54.37% in the past year.
Somi Conveyor Beltings Ltd. – Top Rubber Stocks to Buy
Our eighth pick for Top Rubber Stocks to buy is Somi Conveyor Beltings Ltd. This Rubber Company in India manufactures and supplies to domestic and foreign conveyor belt consumers.
These belts are mainly required for different types and grades of material handling. Other than the conveyor belts, the company produces rubber tyre vulcanizers, pulley lagging rubber sheets, etc.
It has an installed capacity of producing 9 lakh meters of 2000mm conveyor belts in a year. The plant of this firm is located in the city of Jodhpur.
Why should you invest in Somi Conveyor Beltings Ltd. shares?
The factors which make this stock an exciting buy can be the following:
- The company has low debt, which makes it better for investors. A company with low debt indicates proper utilization of the available capital and revenues of the company.
- The book value per share of the firm has been improving over the last two years, indicating the firm’s growth potential.
- There is zero promoter pledge in this firm.
- The TTM PE Ratio is 21.20, while the TTM EPS is 1.84.
- The return generated by the company’s stock in the previous year was 21.22%.
Dolfin Rubbers – Best Rubber Company in India
As per our rankings, the 9th Best Rubber Company in India is Dolfin Rubbers. It was incorporated in 1995 and started its journey in 1997 by manufacturing tubes.
At present, this firm is engaged in producing all kinds of tubes for the auto industry and animal driver tubes. In addition, it provides huge support to the tyre and tube industry in Ludhiana.
Why should you invest in Dolfin Rubbers shares?
- The company’s net profit has been increasing continuously for the past two years continuously. This is a good sign of growth and good management of the company.
- The cash flow from the company’s core business has been increasing as well, which is increasing the net cash flow as well.
- This firm’s book value per share has been improving for the last two years.
- Dolfin Rubbers comes with a Zero promoter pledge.
- It has returned around 48% in the past year to the shareholders, which are at par with the market average in this rubber industry.
- The company has a decent balance sheet that attracts all types of Investors.
Captain Pipes – Top 10 Rubber Shares to Buy
Captain pipes are our tenth choice for the Top 10 Rubber Shares to buy. Captain Pipes is a renowned name in the rubber and construction industries.
It manufactures and exports uPVC column pipes, uPVC fittings and plumbing pipes, CPVC plumbing pipes, fittings, PVC pressure pipes, and casing pipes.
The main plant is in Gujrat, which can produce 17700 metric tons per year.
Why should you invest in Captain Pipes shares?
The factors which make it enjoyable to buy this latex share are –
- A low debt of the company makes it more secure for the shareholders.
- The book value per share of the firm has been improving over the last two years. This is an indication of the growth of the firm.
- The net cash flow of the firm has been increasing over time which signifies the company’s growth.
- There is Zero promoter pledge in the company.
- As per technical analysis, there has been a positive breakout first resistance (LTP>R1).
- However, the most important and interesting fact to note about this share is the industry’s highest return in one year. It provided 347.28% return in the previous year, which is unparalleled and magnificent
MM Rubber – Rubber Sector Stocks to Buy
Apart from the top ten Rubber Sector Stocks to buy, we have also picked some more of them which couldn’t make it to the top ten as per their present market capitalization but hold massive potential for significant returns.
Thus, MM Rubber is our eleventh pick which provided a return of 57% in the last year. It is engaged in the production of latex rubber foam products. It manufactures and sells this product under the name of MM Foam.
The production started with the latex rubber foam segment back in 1958. It is the largest seller and producer of latex rubber foam mattresses.
The company has low debt, which makes it better for investors. Then the revenue has been increasing in every quarter for the past two years. This is a fantastic signal for the growth and potential of the firm.
Tijaria Polypipe – Rubber Companies Stocks to Buy
As our twelfth pick for Rubber Companies Stocks to buy, we have Tijaria Polypipe. This stock has returned 16.11% in the past year.
It is engaged in producing high-grade plastic pipes, PPR Pipes, sprinklers, HDPE, LDPE, and a lot more. Tijaria is a brand in the rubber and pipes industry.
It supplies the products across the irrigation sector, telecommunication sector, housing, and infrastructure sector.
The company has been able to generate net cash, and it is increasing as well. This signifies the firm’s growth and the potential to provide higher returns to the stakeholders.
Easter Treads – Rubber Companies Shares to Buy
Eastern Treads is our thirteenth pick for Rubber Companies Shares to buy in the country for 2022. The firm provided around 63% return in the past year, an excellent figure to look at.
It mainly manufactures pre-cured treads of high quality, cushion, bonding, black vulcanizing cement, gum, and other products like repair patches and others.
This firm’s share can be a good buy because the promoters are increasing shareholding in the firm. This signifies the potential growth of the firm.
There is net cash flow which is increasing mainly due to cash flow from operating activities. Then It has been utilizing its capital and equity efficiently to generate profit.
Thus both RoCE and ROE have been improving over the past two years. The net profit has also been increasing for the last two years.
Rishiroop Rubber – Rubber Companies in India
Rishiroop Rubber provided a generous return of 43.17% in the previous financial year. As per its recent market capitalization, it is our fourteenth pick for Rubber Companies in India that you can invest in.
It is mainly engaged in producing industrial rubber and coatings. In addition, it is known for producing chlorinated rubber under the brand name Chlorub.
The products are also used across the paint industry, printing, and adhesive industries.
Cochin Malabar Estates & Industries Ltd. – Rubber Products Stocks in India
Our final pick for Rubber Products Stocks in India is Cochin Malabar Estates & Industries Ltd., known for both the rubber and tea business across Kerala and Karnataka.
It has other business divisions, like the Fire Engineering division, which is Mumbai, and Aquaculture farm in goal, which they use to cultivate prawns and shrimps. They also have a rubberwood processing factory.
The shares price of this firm has been trading over all the moving averages, be it short, long or medium-term. This signifies a strong price momentum.
The profits are increasing every quarter for previous two years, and it returned a whopping 99.42% in the previous year.
How to find Rubber Stocks for Trading?
If you want to Trade in Rubber Stocks or invest in them, you need to find the stocks which suit your profile. There are two things you would need to do.
Firstly, you need to analyze your investment profile, investment risk appetite, and returns you want to earn. Then you need to analyze the rubber market, and finally, you need to analyze the stocks that align with your investment profile.
For instance, if a stock possesses a higher risk factor and your risk appetite is medium, you shouldn’t consider that stock.
You have to analyze the company’s fundamentals for investment purposes, while technical analysis should be more critical for trading purposes.
We have tried to shortlist the best rubber stocks for you in the article above. We have analyzed both fundamentals and technical factors for your help.
How to Invest in Rubber Sectors Stocks?
If you want to Invest in Rubber Stocks, you need to open a Demat account, and if you want to trade, then both Demat and trading accounts are required.
Once you have these accounts, you can use the trading platforms offered by your brokerage house to buy and sell the stocks.
You can screen the rubber stocks and add them to your market watchlist. Track them and if you feel the price and time are suitable to buy the stock, click on the BUY button.
You need to enter the units you need to purchase, the price if you want to buy at a particular price or the market price and then you can add stop loss and other order criteria.
Top Rubber Companies in India – Conclusion
In India, the rubber industry is one of the stable industries and the largest across the globe. Here we have analyzed the Top Rubber companies in India to choose the best one.
We hope that you find the information about the stocks and companies to pick up the right stock for your portfolio.
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