Multibagger Stock: Talbros Automotive Components Ltd

Talbros Automotive Components Ltd was established in the year 1956. It’s product  range include Gaskets & Heat Shields, Forgings, Suspension Systems & Modules, Anti Vibration components and Hoses.

Key Facts:

  • Client includes name like Ashok Leyland, Bajaj Auto, Eicher, Escorts, GM, Hero Honda, Honda, Hyundai, John Deere, M&M, Maruti ,TAFE, Tata Motors etc.
  • International clients like Carraro, DANA, KMP Brand, Maxi Force, GKN Driveline
  • Gaskets contribute  57% in revenue of Talbros.
  • 38% Market share in Gaskets, which is 3x the nearest competitor.
  • Consistently paying Dividend for the last 50 years.
  • 40% revenue comes from top 5 customers.
  • 8 manufacturing facilities at Haryana, Uttarakhand and Maharashtra and R&D technology center at Faridabad.

JV partners are :

  • Nippon Leakless Corporation(Japan): One of the largest global manufacturers of gaskets and a major Supplier for Honda.
  • Magneti Marelli (Italy):A Fiat group company with annual revenue of over € 6 Billion
  • Marugo Rubber (Japan): Global leader in supply of AntiVibration Product and Hoses.

Stock Outlook:

  • CMP: 282 INR (8 th Dec 2017 )
  • M-cap:  INR 347Cr
  • EPS: 14.76 INR
  • PE: 15.68
  • Book Value: 114 INR
  • 12.35 cr share capital of FV 10
  • Promoter holding 56.6%

Future Outlook:

  • Diversified Auto Component player with presence across Two Wheelers, Passenger, Commercial Vehicles and Farm Equipment.
  • New orders from Amul Industries, Volvo Eicher, GKN and a German luxury car manufacturer
  • Less then 60 lac free float shares in open market.
  • For next 3-4 year this stock can deliver 3x-5x return.

Be Smart. Invest Smartly.

Disclaimer : Please take advice of your financial advisor before any investment.

 

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