Tenneco Clean Air
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Tenneco Clean Air India Limited is positioned for sustained growth, driven by management's strategic focus on technology-led product differentiation and a robust order book that exceeds FY2028 revenue targets. Recent commentary highlights the company's successful integration of advanced ride-control and clean-air technologies, which are expected to enhance competitive positioning amid tightening emission regulations. The anticipated rollout of DaVinci suspension systems in mass-premium vehicles and the increase in content-per-vehicle due to new emission norms are key growth drivers. Vista's financial outlook reflects stable revenue growth and margins, supported by a strong balance sheet and operational efficiencies. However, the company faces headwinds from the long-term transition to electric vehicles, which may impact demand for its core powertrain and exhaust products. The broader auto ancillaries industry is experiencing a favorable environment, with improving pricing power and stable demand across various vehicle segments, although commodity inflation and global market fluctuations remain concerns. Over the next 12-24 months, Tenneco's focus on expanding exports and diversifying its customer base will be critical to mitigating risks and capturing growth opportunities
Why We Like This Stock
- Strong order book exceeding FY2028 revenue targets provides significant revenue visibility
- Management's focus on technology-led product differentiation enhances competitive positioning
- Expansion into new markets and product verticals supports long-term growth potential
Things To Watch Out For
- Long-term transition to electric vehicles may erode demand for core powertrain and exhaust products
- Commodity inflation poses challenges to maintaining profit margins
- Global automotive market fluctuations could impact demand and operational stability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 5,468 | 4,890 | 5,404 | 5,765 | 6,246 |
| Profit Before Tax (Cr.) | 554 | 733 | 843 | 813 | 905 |
| PBT Margin | 10.1% | 15.0% | 15.6% | 14.1% | 14.5% |
| Net Profit (Cr.) | 417 | 545 | 615 | 593 | 659 |
| Earnings Per Share | 10.3 | 13.5 | 15.2 | 14.7 | 16.3 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| HSBC | ▲ Buy | 673 | 15-Sep-2026 |
| HSBC | ▲ Buy | 700 | 07-Aug-2026 |
| Citigroup | ▲ Buy | 650 | 06-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 dampers, suspension systems, and ride control technologies. Its products are used in passenger vehicles, commercial trucks, off-highway vehicles, industrial and other application, including 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.