On Monday’s early trade, the shares of the leading automobile OEM manufacturer soared up to 20 percent to a 52-week high price of Rs 281.70 per share after the company received multiple orders worth Rs 580 crore.
At 12:10 p.m., Talbros Automotive Components Ltd shares were quoted at Rs 280.80 per share, up Rs 45.25 or 19.62 percent from the previous close price of Rs 234.75.
As per the company’s filing, Talbros Automotive Components received new multi-orders worth Rs. 580 crores from both domestic and overseas customers across its business divisions, product segments, and Joint Ventures.
The order details are as follows:
● The company received an order from a leading export OEM for Electric Vehicles (EV) for products such as EDS Brackets, Transcradle Bracket, Mid-Metal Shield, S3 Pack and BatteryStampings for Rs. 270 crores over 5 years. This order is through the Joint Venture -Marelli Talbros Chassis Systems Pvt. Ltd.
● Received orders for Forgings products for applications such as transmission, engines, driveline, and off-highway for Rs. 120 crores over 5 years.
● Received orders worth Rs. 75 crores for over 5 years for heat shield products from multiple domestic OEMs.
● Received orders worth Rs. 40 crores for over 5 years for the gasket products from both domestic and export OEM customers.
● Received orders of Rs 75 crores over 5 years for a leading domestic OEM for products such as Muffler Hangers, Damper Front, and Hose Canister Air Suction. This is through our Joint Venture – Talbros Marugo Rubber.
These orders are to be executed over the next 5 years commencing from FY25 onwards covering the company’s product lines – gaskets, heat shields, forgings, chassis, and rubber hoses.
The company enjoys around 50 percent Market share in Gaskets and Market Leader in Two-Wheeler, Agri and offloaders, HCV & LCV segments of the Gasket business.
According to the September quarter, Ace investor Dolly Khanna holds 1,93,215 equity shares, or 1.57 percent of the firm, while Ace investor Vijay Kedia holds 1,50,000 equity shares, or 1.22 percent.
The company’s revenue has increased by 21 percent year on year, from Rs 160 crore in Q2FY23 to Rs 194 crore in Q2FY24.In the same time frame, net profit increased by 60 percent from Rs 10 crore to Rs 16 crore.
The company’s shares have delivered a multi-bagger return of 165 percent in six months and 200 percent in a year. A shareholder investment of Rs 1 lakh in the company would be worth Rs 2.65 lakhs in six months and Rs 3 lakhs in a year.
Talbros Automotive Components Ltd is engaged in the manufacturing of Automotive and Industrial Gaskets. The company’s portfolio includes a Mercedes-Benz dealership for passenger cars.
The company’s marquee customers include Bajaj Auto, Tata Cummins, Volvo Eicher India, Ashok Leyland, Escorts Group, Force Motors, and many others.
Written by Omkar Chitnis
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