Tenneco Clean Air
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Tenneco Clean Air India Limited's management has articulated a strong growth trajectory, underpinned by a substantial order book and strategic capacity expansions. The company plans to invest INR 1,400 million in Northern and Western India to meet rising demand, which is expected to drive double-digit revenue growth through 2028. This aligns with Vista's forecast of stable margins and moderate revenue growth, supported by a favorable macro environment and improving pricing power in the auto ancillaries sector. The anticipated entry into Maruti Suzuki's supplier panel and the successful execution of new programs with major OEMs further enhance Tenneco's competitive position. However, the company remains vigilant regarding potential headwinds, including geopolitical risks and competitive pressures. Over the next 12-24 months, Tenneco's focus on localization and export opportunities, alongside the adoption of stricter emission regulations, positions it well for sustained growth. Key opportunities include expanding into new product verticals and leveraging India's export potential, while watchpoints include macroeconomic conditions and execution challenges that could impact growth expectations
Why We Like This Stock
- Significant capacity expansions with a planned INR 1,400 million investment to meet rising customer demand
- A robust incremental lifetime order book of INR 124,000 million, providing strong revenue visibility and supporting double-digit growth
- Entry into Maruti Suzuki's supplier panel and successful collaborations with major OEMs enhance competitive positioning
Things To Watch Out For
- Potential macroeconomic risks and competitive pressures could challenge growth expectations
- Geopolitical developments may lead to cost inflation, impacting margins
- Execution challenges in scaling operations to meet demand could pose risks to revenue targets
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 5,468 | 4,890 | 5,404 | 5,745 | 5,992 |
| Profit Before Tax (Cr.) | 554 | 733 | 843 | 841 | 892 |
| PBT Margin | 10.1% | 15.0% | 1560.0% | 14.6% | 14.9% |
| Net Profit (Cr.) | 417 | 545 | 615 | 613 | 649 |
| Earnings Per Share | 10.3 | 13.5 | 15.2 | 15.2 | 16.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Citigroup | ▲ Buy | 650 | 06-Aug-2026 |
| HSBC | ▲ Buy | 700 | 07-Aug-2026 |
Company Overview
Show Company Profile
Tenneco Clean Air India Limited operates as a manufacturer and supplier of clean air and powertrain solutions. The company operates in two segments, clean air and powertrain solutions; and advanced ride technologies. The company designs, manufactures, and sells exhaust aftertreatment systems, such as catalytic converters, mufflers, and exhaust pipes; engine bearings, sealing systems, and ignition products, such as spark plugs and ignition coils; and shock absorbers, struts, and suspension systems. Its products are used in passenger vehicles, commercial trucks, off-highway vehicles, generator sets, small commercial vehicles, two wheelers and three wheelers. Tenneco Clean Air India Limited was founded in 1979 and is based in Gurugram, India. Tenneco Clean Air India Limited operates as a subsidiary of Tenneco Mauritius Holdings Limited.