Talbros Automotive shares gain over 16% on multiple orders; up 183% in CY23 so far

Shares of Talbros Automotive Components rallied another 16.7% in today's trade to ₹328.60 apiece after gaining 20% in the previous trading session. This remarkable uptick in shares can be attributed to the company's multiple order wins. 

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On Monday, the company announced that it received new multi-year orders worth ₹580 crore from both domestic and overseas customers across its business divisions, product segments, and JVs.

The company will execute these orders over a period of the next 5 years, commencing from FY25 onwards. The new orders cover the company's product lines: gaskets, heat shields, forgings, chassis, and rubber hoses.

"These orders will help the company increase its share with existing customers and new customers across geographies, which will help the company grow and gain market share domestically and in the export market in the coming years. This also leads to improving margins," the company added.

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Talbros 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 EicherIndia, 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.

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The shares this year have performed strongly as they rallied from ₹114 apiece to the current value of ₹322.80, rewarding their shareholders with a multi-bagger return of 183%. Notably, the shares have consistently generated positive returns, with a 20% rally in CY20, followed by gains of 172.41% and 45.49% in CY21 and CY22, respectively.

For the September quarter, the company posted a 53% year-on-year increase in its consolidated net profit, reaching ₹20 crore. The revenue from operations witnessed a growth of 21% YoY, reaching ₹196.6 crore.

For the first half of FY24, the company continued its impressive performance, with a 50% growth in net profit, amounting to ₹37.4 crore. The revenue from operations also displayed a robust increase, reaching ₹316.9 crore, marking a significant improvement of 21%.

At 11:15 AM, the stock was trading with a gain of 14.58% at ₹322.80 apiece. 

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