Talbros Auto hits new high; rallies 14% on healthy order book position

Over the last year, Talbros has received new multi-year orders over Rs 1,000 crore from both, domestic and overseas customers across its business divisions, product segments and JVs.

Shares of Talbros Automotive Components (TACL) hit a new high of Rs 673.55, soaring 14 per cent on the BSE in Monday’s intra-day trade amid heavy volumes. In past one month, the stock of auto components and equipments manufacturer has zoomed 40 per cent on healthy order book position. In comparison, the S&P BSE Sensex was up 3 per cent during the same period.

At 10:44 AM; TACL quoted 12 per cent higher at Rs 662, as against 0.50 per cent rise in the benchmark index. The average trading volume on the counter jumped six-fold today, with a combined 650,000 shares changing hands on the NSE and BSE.

TACL, the flagship manufacturing company of the Talbros Group was established in the year 1956 to manufacture automotive & industrial gaskets in collaboration with Coopers Payen of UK. Today Talbros stands proud and tall as a mother brand of gaskets, chassis, rubber products and forgings in India. Talbros Group portfolio also includes Mercedes Benz dealership for passenger cars.

Few of the marquee customers includes Bajaj Auto, Tata Cummins, Volvo Eicher India, Ashok Leyland, Escorts Group, Force Motors, Hero MotoCorp, Honda, Hyundai, John Deere, Mahindra & Mahindra, Maruti Suzuki, Suzuki, TAFE, Daimler India, Tata Motors, Simpsons, Carraro, Dana, Musashi, Spicer, GE and QH Talbros besides a robust distribution network in the aftermarket.

Over the last year, TACL has received new multi-year orders over Rs 1,000 crore from both, domestic and overseas customers across its business divisions, product segments and joint ventures (JVs). These orders are to be executed over a period of next 5 years covering the company's product lines – gaskets, heat shields, forgings and chassis. These orders will help the company to increase its share with existing customers and new customers across geographies thereby gaining market share in coming years, the management said.

The company plans to more than double its revenue and become Rs 2,200 crore company at a group level by FY27. Over the years, the management said the company has increased its focus on Exports and continue to do so. By FY27, the company plans to have at least 35 per cent through exports. This will help increase margins too and it should also increase to 15-16 per cent by FY27, it added.

In FY23, the automobiles sector had performed well and the growth was particularly strong in the passenger vehicle segment and TACL expects it to keep going on for the next coming years. The demand for commercial vehicles have been boosted by the government initiatives aimed at building infrastructure such as roads, highways, and ports. As a company that is very strong in these 2 segments, Talbros will continue to perform even better and stronger and take more market share in these segments, the management had said in Q4FY23 earnings conference call.