The shares of the automotive component manufacturer hit a 5 percent upper circuit of Rs 293.30 apiece after the company received a work order worth Rs 1,000 crore from a large European OEM.
With a market capitalization of Rs 1,810.49 crore, the shares of Talbros Automotive Components Ltd were trading at Rs 293.30 per share, increasing around 5 percent as compared to the previous closing price of Rs 279.35 apiece
According to the company filing, Talbros Automotive Components Ltd Joint Venture Company, Marelli Talbros Chassis Systems Private Limited (MTCS) received a work order worth Rs 1,000 crore for a multi-year contract from a large European OEM.
Moreover, this order focuses on the supply of Suspension Arms tailored for both conventional Internal Combustion Engine (ICE) vehicles and new-age Electric Vehicle (EV) platforms for EMEA and NAFTA regions.
Additionally, the manufacturing would be done at MTCS’s Pune factory, with a capital investment of around Rs. 65 crores in FY25. The investments will be made through internal accruals and loans.
Furthermore, this purchase brings TACL Group a new customer in Europe, a highly specialized market for automotive components. This will boost market share in Europe and create opportunities for development with existing and new OEMs in the area.
Ace investor Vijay Kishanlal Kedia holds 6,25,000 shares, which is equivalent to 1.01 percent of the company as of March 2024.
Looking into Talbros Automotive Components Ltd’s financials, the revenue increased by 25 percent, from Rs 159 crore in Q3 FY23 to Rs 199 crore in Q3 FY24. During the same period, net profit increased by 64 percent, from Rs 14 crore to Rs 23 crore.
Last year, the company got orders of Rs 980 crores across several product areas from independent and joint venture firms. Orders for the EV category totaled Rs. 475 crore. Furthermore, orders of Rs. 415 crore were connected to exports. Combined with order wins in FY24.
The stock has delivered returns of 28.85 percent in the last six months and a multi-bagger return of 229.24 percent in a year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 3.29 lakh in a year.
Talbros Automobile Components Limited is principally engaged in the manufacture of automobile components. The company sells a variety of goods, such as multi-layer steel gaskets, exhaust manifold gaskets, rubber molded gaskets, cylinder head gaskets, gaskets with electronic controls, edge molded gaskets, and heat shields.
Written by:- Abhishek Singh
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