This Auto Ancillary stock hit 52W high and has risen 19%, making a new 52W high on Tuesday after reporting phenomenal Q1 FY24 earnings earlier today. It shows a buoyant trend – volumes have been consistently rising and today have increased 9 fold compared to yesterday and the monthly average. The market cap currently is Rs. 2,840 crores with a lower P/E and P/B values compared to the industry average benchmark.
The stock has been steadily rising – currently Rs ~4 away from 20% UC limit set at Rs. 401.25, all while making higher highs and higher lows the last couple of days, the week and the month. The stock has returned ~103% in a 1 year period and ~378% in the last 3 year period, meaning if you invested Rs. 1 lakh 3 years ago, it would now be worth Rs. 4.78 lakh!
The stock under spotlight is Banco Products (India) Ltd (“Banco”). Banco reported its Q1 FY24 earnings earlier on Tuesday – Revenue up 8.2% YoY from Rs. 251.6 crore to Rs. 272.4 crore, Net Income up 226.8% YoY from Rs. 33.76 crore to Rs. 110.3 crore, EBITDA grew 179.4% from Rs. 46.4 crore to Rs. 129.7 crore.
The company has been consistent over the last 12 month period with high promoter stake at 67.9% and zero pledges along with consistent DII & FII holdings – 1.9% and the rest being public float. It has a strong 3 year CAGR – Revenue at 17.5%, Net Income at 45.4%.
Banco has been operating for close to five decades and is a leader in its niche within Auto Ancillaries that includes engine cooling – radiators, air & oil coolers and sealing systems – gaskets & heat shields serving auto and industrial verticals. Key clients include Maruti Suzuki, Tata Motors, Honda, TVS Motors, Ashok Leyland, Indian Railways and more.
Written by Sandeep R
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