Outperforms Defence Stocks: Gujarat-Based Multibagger Rallies 51.5%, Beats Defence Stocks; Trades at 20x PE

Stock has delivered a return of 70 per cent, and over the last three years, the stock has jumped by 337.8 per cent, making it a mutlibagger.  

Over the past month, defence stocks have been buzzing on the bourses, driven by rising geopolitical tensions and India’s aim to achieve Rs 50,000 crore in defence exports by 2029. As a result, defence stocks have surged, delivering digit gains.

While defence stocks grabbed the spotlight on Dalal Street, a lesser-known stock quietly outperformed them all, rallying over 51 per cent in the past month alone. That stock is Banco Products India Limited (Banco India), a Gujrat based company that has carved a niche for itself in the business of engine cooling and sealing systems both for automotive and industrial applications.

Product Portfolio of Banco Products

Engine cooling systems:

Banco’s product range includes radiators, charge air coolers, oil coolers (transmission & hydraulic), fuel coolers, battery coolers, inverter coolers – available in both aluminium and copper/brass configurations. The company also provides accessories like expansion tanks, fan motor assemblies, fan shroud and guards, along with various mounting and plumbing components.  

Engine sealing systems:

Banco offers a wide range of sealing solutions including engine cylinder head and peripheral gaskets, heat shields, and industrial gasket with a wide material range and sizes for demanding applications of sealing. The materials include – multi-layered steel (MLS), graphite composite gaskets, steel fiber composite gaskets, compressed fiber joining sheet gaskets, rubber cork gaskets, rubber pre-coated beaded gaskets, edge moulded gaskets and copper gaskets.

Banco Products serves a prestigious clientele including Cummins India Ltd, Mahindra and Mahindra Ltd, J C Bamford Excavators Ltd, Ashok Leyland Ltd, TVS Motor Company Ltd, Maruti Suzuki India Ltd, Hero Motocorp Ltd, WABCO India Ltd, Tata Motors Ltd, and Caterpillar. 

Banco India’s share price has been on an upward trajectory ascending higher following the release of its results for the quarter and financial ended March 31, 2025. I

In Q4FY25, Banco Products consolidated total operating revenue stood at Rs 874.65 crore up 20.83 per cent YoY as against Rs 723.87 crore in Q4FY24. Net profit of the company surged by 125.25 per cent YoY to Rs 153.50 crore in Q4FY25 as against Rs 68.15 crore in Q4FY24.

For FY25, consolidated operative revenue grew by 16 per cent YoY to Rs 3,212.5 crore as against Rs 2,768.4 crore in FY24. Net profit stood at Rs 391.8 crore up by 44.36 per cent as against Rs 271.4 crore in FY24. The company has delivered a five-year CAGR of 38.6 per cent in net profit growth.  

Performance of Banco India vs Defence Stocks

Below is a comparison of Banco India’s stock performance vis-à-vis constituents of the Nifty India Defence Index:

As evident from the table above, Banco India leads the pack with a one-month gain of 51.5 per cent. The stock hit a 52-week high of Rs 603 on NSE as of May 21, 2025. Over the past three months, it has delivered a return of 70 per cent, and over the last three years, the stock has jumped by 337.8 per cent, making it a mutlibagger.  

Banco India’s price-to-earnings (PE) ratio currently stands at 20.2x, which is the lowest amongst its peers. 

Disclaimer: The article is for informational purposes only and not investment advice.