Talbros Automotive Components Stocks Gained 3%!

17 May 2023
2 mins read
These orders are to be executed over the next 5 years covering the company's product lines – gaskets, heat shields, forgings and chassis.
Talbros Automotive Components Stocks Gained 3%!

Amid the strong sell-off seen in the Indian markets, there is a stock that has emerged to be a hero and its Talbros Automotive Components. 

The stock is trading higher by nearly 3% on Wednesday and it has logged an intra-day high of Rs 545. The stock is trading above all its key short- and long-term moving averages. Interestingly, the short-term moving average i.e., 20-DMA has crossed over the long-term moving average i.e. 200-DMA on Wednesday. The stock has jumped nearly 41% from its 52-week low. 

What does the company do? 

Talbros Automotive Components, the flagship manufacturing company of the Talbros Group, was established in 1956 to manufacture automotive and industrial gaskets. Along with these gaskets, it is into manufacturing of forging. The company has two main business segments: Gasket Business and Forgings Business. Product Portfolio consists of Gaskets, Chassis components, Anti-Vibration products, Hoses, Forgings & Heat Shields. 

How did the company fare in Q4FY23? 

Company’s total income from operations jumped 18% YoY to Rs 176.9 crore in Q4FY23 and EBITDA witnessed a growth of 17% YoY to Rs 26.8 crore. Profit after tax jumped 34% YoY to Rs 16.9 crore in Q4FY23. Since FY18, the company has almost doubled its revenues and grown gross profit from 45% to 52%. It aims to double its turnover to Rs 2,200 crore in four years across all divisions and has acquired a large order book of Rs 1,000 crore in the last fiscal year. The gasket business line dominates the market share in India with a whopping 50% share and has single-source status with customers such as Cummins, Bajaj, and John Deere. Talbros has signed an agreement with Cummins to co-design products till 2030. 

Multi-Year orders will aid in gaining market share 

Talbros has received new multi year orders over Rs 1,000 crore from both domestic and overseas customers across its business divisions, product segments and JVs. These orders are to be executed over the next 5 years covering the company’s product lines – gaskets, heat shields, forgings and chassis. These orders will help the company to increase its share with existing customers and new customers across geographies thereby gaining market share in coming years. 

Big Sharks: 

Ace Investors like Vijay Kishanlal Kedia and Dolly Khanna are holding 1.31% and 1.03%, respectively in Talbors Automotive Components.