A well-known stock from Dolly Khanna’s portfolio has come into focus as the company sets an ambitious target of Rs.2,200 crore in revenue from its non-LTL (less than truckload) division. With a strong emphasis on high-margin segments, the company is also aiming for a robust EBITDA margin, making it an attractive pick for investors tracking growth and profitability.
During Friday’s trading session, the shares of Talbros Automotive Components Ltd. reached an intraday high of Rs.290.80 apiece, rising 1.1 percent from the previous close of Rs.287.60 apiece. Since then, the shares have retreated and closed at Rs.283.60 per share. Over the past five years, the stock has delivered over 1,250 percent returns.
Management Guidance
Talbros Automotive Components Ltd has set a revenue target of Rs. 2,200 crore, with Rs.2,000 crore expected from its non-LT division. However, the company has cautioned that achieving this target may face a delay of six to nine months due to challenges in the launch phase.
Despite this, Talbros remains committed to its growth strategy, focusing on scaling its production capacity and enhancing its product portfolio to meet market demands. The company is also exploring ways to streamline operations and mitigate potential setbacks to ensure it meets its financial goals within the revised timeline.
Additionally, Talbros Automotive Components Ltd has reported a robust EBITDA margin expansion, projected to range between 16.75 percent and 17 percent moving forward. This growth is primarily attributed to the company’s successful joint ventures, particularly with Marelli and Marugo.
These partnerships have strengthened Talbros’ operational efficiency and market positioning, enabling the company to capitalize on emerging opportunities in the automotive sector. The company remains optimistic about sustaining this momentum, supported by a steady demand for its products and a focus on innovation to meet evolving industry standards.
Talbros Automotive Components Ltd. (TACL) has detailed its capital expenditure (capex) strategy for FY25 and projected revenues for FY27E. The company’s Gasket & Heat Shield division, currently operating at 85 percent utilization, plans to invest Rs 50 crore to boost capacity. The Forgings segment, at 80 percent utilization, will allocate Rs.60 crore for expansion. Marelli Talbros Chassis Systems (MTCS), a 50 percent joint venture with Marelli Suspension Systems SpA, is at 74 percent utilization (averaging 82 percent with hoses at 90 percent) and will invest Rs 80 crore to support growth.
Talbros Marugo Rubber (TMR), another 50 percent joint venture with Marugo Rubber, will see a capex of Rs10 crore. Overall, TACL aims to fund Rs 25-30 crore annually through internal accruals, with the remaining amounts to be financed by the respective companies using a mix of internal funds and borrowings.
Financial Performance
In Q4 FY25, Talbros Automotive Components Ltd. achieved a revenue of Rs 206 crore, showing a 1.48 percent year-on-year increase from Rs 203 crore in Q4 FY24. On a sequential basis, the revenue grew by 2.49 percent compared to Rs 201 crore in Q3 FY25, indicating a positive trend in operational performance.
The company reported a net profit of Rs 27 crore in Q4 FY25, reflecting a 46 percent year-on-year decline from Rs 50 crore in the same quarter of the previous year. However, on a sequential basis, the net profit increased by 12.5 percent from Rs 24 crore in Q3 FY25, demonstrating consistent improvement and stronger margin stability.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
