Talbros Automotive
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Talbros Automotive is strategically positioned for growth, driven by a substantial INR 1,000 crore order book, with a focus on European exports and the electric vehicle (EV) segment. Management's pivot towards the circular economy through the Lohum Talbros Carbon joint venture highlights their commitment to innovation and sustainability, targeting high-growth markets for recycled materials. This aligns with Vista's forecast of accelerating revenue growth, supported by a robust pipeline of new business wins and a diversified portfolio across various vehicle segments. Despite facing macro-level risks, particularly from the European automotive sector's instability, Talbros is well-equipped to maintain stable margins and capitalize on the ongoing shift in global supply chains. The favorable macro environment in India, characterized by strong auto sales and improving manufacturing activity, further supports the company's outlook. Over the next 12-24 months, key opportunities include scaling the Heat Shield and Forging divisions, while watchpoints include inflationary pressures and the dependency on OEM electrification timelines. Overall, Talbros is positioned to leverage its strengths in the evolving automotive landscape, with a focus on sustainable growth and innovation
Why We Like This Stock
- Substantial INR 1,000 crore order book focused on European exports and EVs enhances revenue visibility
- Strategic pivot towards the circular economy through the Lohum Talbros Carbon JV opens new growth avenues
- Strong domestic and export pipeline supports Vista's forecast of accelerating revenue growth
Things To Watch Out For
- Macro-level risks from the structural instability of the European automotive sector could impact performance
- Inflationary pressures may challenge margin stability despite management's ability to pass on costs
- Dependency on OEM electrification timelines poses risks to the anticipated growth in EV revenues
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 778 | 827 | 870 | 930 | 1,016 |
| Profit Before Tax (Cr.) | 104 | 117 | 131 | 155 | 165 |
| PBT Margin | 13.3% | 14.2% | 1505.7% | 16.6% | 16.2% |
| Net Profit (Cr.) | 78 | 93 | 103 | 123 | 131 |
| Earnings Per Share | 12.6 | 15.0 | 16.7 | 19.9 | 21.2 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Talbros Automotive Components Limited engages in the manufacture and sale of auto components in India. The company offers gaskets with electrical control, multi-layer steel, post coated/selective area coated, exhaust and hot, rubber and edge molded, fiber, heat shield gaskets, and plastic moulded components. It also offers forging products, such as companion flanges, hydraulic end caps and rod eyes, tube and flange yokes, intermediate shaft and differential housing, blank ring gears, king pins and linear cylinders, and towing solutions. In addition, the company provides chassis components, including control arm, suspension links, front cross member, rear twist-beam axle, cradle, wheel group, and semi corner module assemblies. Further, it offers mounting muffler hangers, suspension bushings, body and cab mounts, leading and trailing arm bushes, molded hoses for air cleaners, as well as extrusion hoses for air, fuel, and water. The company's products are used in passenger and commercial vehicles, two-wheelers, three-wheelers, agricultural machinery, off-loaders, and industrial vehicles. It exports its products. The company was incorporated in 1956 and is based in Faridabad, India.