Multibagger Stock: Talbros Automotive Components share price surged 15% in intraday trade on Wednesday, November 27 to a 4-week high of ₹344 per share, following the company’s announcement of a significant order win worth ₹475 crore. The company informed investors that along with its joint ventures (JVs), it has secured orders for both domestic and export markets from leading original equipment manufacturers (OEMs).
These orders, spanning across a five-year execution period starting from FY25, cover a range of Talbros' products, including gaskets, heat shields, forging components, chassis, and hoses. The order breakdown includes approximately ₹345 crore from the sealing business, with ₹131 crore coming from exports, primarily to Europe.
"Of this, ₹245 crores is for the heat shield segment received from multiple OEMs. The remaining ₹100 crore is for the gasket division. By increasing exports to Europe, a highly specialised market for auto component manufacturers, the company is boosting its market share in that region. Additionally, increased exports are expected to enhance overall margins," the company said in today's filing.
Furthermore, through its JV with Marelli Talbros Chassis Systems, it received orders worth ₹35 crore for chassis components and ₹23 crore from the forging business. The Talbros Marugo Rubber JV secured ₹70 crore order for products like hoses and A/V in the domestic market.
Talbros is confident that these new orders will enhance the company’s revenue visibility and profitability, further demonstrating the capabilities developed by Talbros and its joint ventures in highly specialised automotive markets.
The company is a diversified auto component player with a presence across automobile categories in passenger vehicles, commercial vehicles, two-wheelers, three-wheelers, agricultural machinery, off-loaders, and industrial vehicles.
Its marquee customers include 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, and GE.
For the September quarter (Q2FY25), the company posted a 15% year-on-year increase in its consolidated net profit, reaching ₹23 crore. The revenue from operations witnessed a growth of 11% YoY, reaching ₹215 crore.
The company’s shares began their remarkable rally in April 2023 at ₹81 and maintained this upward trend for the following 16 months, until July 2024, reaching a fresh all-time high of ₹395.80, marking an impressive gain of nearly 400%.
However, the stock struggled to maintain the same momentum in the subsequent months, leading to a 16% decline from its peak. Nevertheless, looking at the long-term picture, the stock has delivered a phenomenal return of 1,343% over the past four years.
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