Puneet Resins is in the business of manufacturing and trading rubber products for supply to the non-tyre segment of rubber users. The sales mix of trading revenues to manufacturing revenues varies widely from year to year depending on demand conditions. The company has reported consistent growth in revenues and profits over the last five years. It reported operating profits of 7cr on revenues of about 50cr in the last financial year. It operated with no net debt. The business is subject to price spikes of its raw materials (PVC, Synthetic Rubber etc.). It is exposed to further weakening in its negotiating power with suppliers as a result of increasing importance of competing (petroleum-based) user industries. It also has apparently little pricing power with its end customers.
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