One of the Dolly Khanna stocks engaged in the business of manufacturing gaskets and forging. The stock has jumped 12.45 percent after receiving an order worth Rs. 475 crore from the leading OEMs.
Stock movement:
In Wednesday’s trading session, Talbros Automotive Components Limited‘s share skyrocketed by 12.45 percent from the previous close of Rs. 298.90. The stock opened at Rs. 312 and is currently trading at Rs. 336.40 with a high of Rs. 344 and a low of Rs. 312. The market capitalization now stands at approximately Rs. 2,071.29 crore.
What Happened:
Talbros Automotive Components Limited (TACL), along with its joint ventures (JVs), has secured orders worth Rs. 475 crores for both the domestic and export markets from leading OEMs. The order includes EV segments of Rs. 75 crore and exports of Rs. 145 crore. The orders will be executed over the next five years.
Out of the total, Rs. 345 crore comes from the sealing business, with Rs. 245 crore for heat shields and Rs. 100 crore for gaskets. These orders reflect TACL’s strength in specialized automotive components.
TACL’s JVs have also contributed significantly, with Marelli Talbros Chassis Systems securing Rs. 35 crore for chassis components and Talbros Marugo Rubber securing Rs. 70 crore for hoses and A/V products.
Capex of Talbros Automotive Components Limited
TACL’s Capex plans for FY24 include funding for various business segments such as gaskets & heat shields, forgings, Marelli Talbros chassis systems, and Talbros Marugo rubber. The total Capex is planned to be around Rs. 25-30 crores per annum, which will be funded through internal accruals.
TACL plans to increase its Capex to reach additional revenues of Rs. 50 crore for gaskets & heat shields, Rs. 60 crore for forgings, Rs. 80 crore for Marelli Talbros Chassis Systems, and Rs. 10 crore for Talbros Marugo Rubber in FY27. This strategic Capex allocation aligns with the company’s natural growth and expansion plans.
Future Plans:
The company’s forward strategy focuses on four key areas, which include increased export sales, increased margins, higher returns, and a comfortable debt profile. The company aims to increase the EBITDA margins and ROCE category and keep the total debt under Rs. 100 crores.
Customer base
Talbros Automotive Components Limited’s diverse customer base in the original equipment manufacturer (OEM) segment spans various industries such as 2-wheeler, passenger, HCV/LCV, Agri & Off Loader, and Agri & Off Loader. The customer brands shown included well-known names like Maruti Suzuki, Hyundai, Mahindra, Tata, Suzuki, Bajaj, Volvo, JCB, and more, across different vehicle and equipment categories.
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Shareholding Pattern
Talbros Automotive Components Limited had a majority stake held by the promoters at 58.43 percent, foreign institutional investors at 0.50 percent, and the public at 41.96 percent in September 2024. In the public holding, Dolly Khanna has held a 1.20 percent stake in the company.
Recent quarter results and ratios:
Talbros Automotive Components Limited’s revenue has increased from Rs. 194 crore in Q2 FY24 to Rs. 215 crore in Q2 FY25, which has grown by 10.82 percent. The net profit of Talbros Automotive Components Limited has also grown by 15 percent, from Rs. 20 crore in Q2 FY24 to Rs. 23 crore in Q2 FY25.
Talbros Automotive Components Limited’s revenue and net profit have grown at a CAGR of 19.23 percent and 74 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 21.4 percent and 17.2 percent, respectively. The debt-to-equity ratio of the company is to be 0.16x, which shows the company is almost debt-free. Talbros Automotive Components Limited’s EPS is to be Rs. 18.9.
Company Overview:
Talbros Automotive Components Limited is a leading Indian automotive manufacturing company established in 1956, specializing in gaskets, chassis, rubber products, and forgings. With 10 manufacturing facilities and strategic joint ventures, the company serves major automotive brands across India and maintains a strong aftermarket presence.\
Written By – Nikhil Naik
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