Vijay Kedia’s portfolio multibagger auto components & equipment stock secures a landmark multi-year Rs 1,000 crore contract from a Leading European OEM
The stock gave multibagger returns of 230 per cent returns in just 1 year and a whopping 600 per cent in 3 years.
Talbros Automotive Components Limited (TACL), announces order win from a large European OEM for a multi-year contract valued at approximately Rs. 1,000 crore. These orders are to be executed over a period of the next 8 years commencing from Q4FY25.
The Order win is by TACL's joint venture company, Marelli Talbros Chassis Systems Private Limited (MTCS). This order is centred on the supply of suspension arms tailored for both conventional Internal Combustion Engine (ICE) vehicles and new-age Electric Vehicle (EV) platforms for EMEA and NAFTA regions.
The production for the same would be done from the Pune plant of MTCS for which a capex investment of Rs 65 crore is envisaged in FY25. The investments would be done through internal accruals and debt. This order adds a new customer for the TACL group in Europe, which is a highly specialized market for automotive components. This will further improve the market share in Europe and open new avenues of growth with existing and new OEMs in the region.
Last year, the Company received orders to the tune of Rs 980 crore across varied product segments in standalone and JV company. Amongst these, orders worth Rs 475 crore were for supply for the EV segment. Furthermore, orders worth Rs4 15 crore were related to exports. Coupled with order wins in FY24, TACL anticipates continued momentum in business and profitability.
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About Talbros Automotive Components Ltd
Established in 1956, Talbros Automotive Components Ltd, the leading manufacturer of the Talbros Group, began by making gaskets alongside Coopers Payen of the UK. Today, Talbros has become a powerhouse brand in India for gaskets, chassis parts, rubber products, and forgings. They even hold a Mercedes Benz dealership for passenger cars. With 10 manufacturing plants across Haryana, Uttarakhand, and Maharashtra, and an R&D center in Faridabad, Talbros (alongside their joint ventures) boasts the capability to design, develop, and competitively manufacture products tailored to client needs. Technical collaborations with Nippon Leakless Corporation and Sanwa Packaging of Japan further enhance their expertise. Their impressive client list includes major names like Bajaj Auto, Tata Motors, Hero MotoCorp, Honda, Mahindra & Mahindra, and Maruti Suzuki. Beyond supplying to original equipment manufacturers, Talbros also boasts a strong aftermarket distribution network, solidifying their position as a key player in the Indian and International Automotive Industry.
The company has a market cap of over Rs 1,800 crore and has delivered good profit growth of 21.8 per cent CAGR over the last 5 years. In a recent development, the Board of Directors for the high-performing company endorsed a stock split, wherein each original equity share, valued at Rs 10, underwent sub-division into 5 new equity shares, each with a face value of Rs 2. The stock split took effect on Friday, October 27, 2023.
As of March 2024, 2 ace investors, Vijay Kedia & Dolly Khanna own 1.01 per cent and 1.23 per cent stake respectively in the company. Furthermore, FIIs have increased their stake to 0.13 per cent in March 2024 compared to 0.01 per cent in December 2023. The stock gave multibagger returns of 230 per cent returns in just 1 year and a whopping 600 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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