This Dolly Khanna-owned stock has dipped 24% in July thus far

Shares of Tinna Rubber and Infrastructure were locked in the 5 per cent lower circuit at Rs 1,658.85 in Thursday's intra-day deals on the BSE.

Shares of Tinna Rubber and Infrastructure were locked at the 5 per cent lower circuit at Rs 1,658.85 on the BSE on Thursday at 01:16 pm; in an otherwise strong market. In comparison, the BSE Sensex had rallied 0.53 per cent or 425 points to 81,142.

With today’s decline, the stock price of specialty chemicals company has slipped 24 per cent from its record high of Rs 2,179 touched on June 28. Prior to that, in 71 days between March 14 and June 28, the market price of Tinna Rubber and Infrastructure had zoomed 276 per cent from Rs 580 on March 14.

Despite the continue downfall in stock price, since April, the market value of specialty chemicals company has zoomed 137 per cent.

Ace investor Dolly Khanna’s holding in Tinna Rubber and Infrastructure increased to 1.03 per cent in the June quarter, according to shareholding pattern filed by the company. The company has total outstanding shares of 17.13 million shares, of 72.65 per cent were held by the promoters. The remaining 27.35 per cent were held with individual shareholders (18.56 per cent), corporate bodies (2.72 per cent) and Investor Education and Protection Fund (IEPF) (2.7 per cent).

Dolly Khanna held less than 1 per cent holding in the company in the previous two quarters i.e. December 2023 and March 2024, the shareholding pattern data shows. Earlier, in September 2023, Dolly Khana held 1.3 per cent stake in Tinna Rubber and Infrastructure. On September 15, 2023, the stock turned ex-bonus in the ratio of 1:1.

In the past one year, the market price of Tinna Rubber and Infrastructure has appreciated by 363 per cent, as compared to 21 per cent rally in the BSE Sensex.

The company is primarily engaged in recycling of the waste tyres/end of life tyres (ELT) and manufacture of value added products. The company manufactures crumb rubber, crumb rubber modifier (CRM), crumb rubber modified bitumen (CRMB), polymer modified bitumen (PMB), bitumen emulsion, reclaimed rubber/ ultrafine crumb rubber compound, cut wire shots, polymer composites etc. The products are primarily used for making/ repair of road, tyres and auto part industry.

As natural resources dwindle, recycling has become a cornerstone of sustainable development globally. The rubber industry, particularly the recycled rubber sector, has gained importance due to the increasing need for sustainable practices. ELTs have transitioned from being considered waste to becoming a valuable resource.

The recycled rubber market was valued at $1.2 billion in 2023 and is projected to grow to $2.8 billion by 2031, driven by the automotive sector's demand and rising environmental awareness. The increasing inclination of manufacturers towards rubber recycling, driven by rising natural rubber prices, is expected to significantly boost the global recycled rubber market over the forecast period. The automotive industry's demand for recycled rubber, due to its resistance to heat and ultraviolet light, is a key factor propelling market growth, Tinna Rubber and Infrastructure said in its FY24 annual report.

India's commitment to sustainable infrastructure development has been further bolstered by the Government of India's recent initiative to constitute a Task Force focused on the use of Bitumen/Modified Bitumen in National Highways Projects. The Task Force, established under the direction of the Hon'ble Minister of Road Transport and Highways, is tasked with several key mandates.

These include recommending the appropriate type and grade of bitumen for different climatic zones considering factors such as ambient temperature, rainfall, and traffic loading intensity.

Additionally, the Task Force will provide recommendations for maximizing the use of waste materials such as plastic, crumb rubber, and bio-bitumen in road construction.

This initiative is positive for tyre recycling companies, as it underscores the government's commitment to recycling and environmental sustainability. By promoting the use of crumb rubber and other recycled materials, the government is supporting the growth of the recycling sector, which is crucial for reducing waste and fostering a circular economy, the company said.