Talbros Automotive zooms 19% on winning multi-year orders worth Rs 580 cr

These orders will help the company increase its share domestically and in the export market in the coming years

Shares of Talbros Automotive Components hit a new high of Rs 279.95 as they zoomed 19 per cent on the BSE in Monday's intraday trade, in an otherwise subdued market, after the company received multi-year orders worth of Rs 580 crore from local and overseas customers.

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 will also lead to improving margins, Talbros Automotive said.

The stock of the auto ancillary company surpassed its previous high of Rs 264 touched on October 30. At 09:50 AM, Talbros Automotive was quoting 17 per cent higher at Rs 275 as compared to 0.14 per cent decline in the S&P BSE Sensex. The average trading volume on the counter jumped over three-fold today with a combined around 1.3 million equity shares changing hands on the NSE and BSE till the time of writing of this report.

Since April, the stock has zoomed 241 per cent. On October 27, shares of Talbros Automotive turned ex-split in the ratio of 1:5 i.e. one share having face value of Rs 10 each into five shares with face value of Rs 2 per equity share.

In an exchange filing earlier today, Talbros Automotive announced that the company has received multi-year orders worth Rs 580 crore from both, domestic and overseas customers, across its business divisions, product segments, and JVs including export orders of Rs 415 crore and multiple Electric Vehicles (EV) orders for Rs 270 crore from leading original equipment manufacturers (OEMs).

These orders are to be executed over a period of five years commencing from FY25, covering the company's product lines – gaskets, heat shields, forgings, chassis, and rubber hoses.

One of the leading export OEMs for EV for products has ordered EDS Brackets, Transcradle Bracket, Mid-Metal Shield, S3 Pack, and Battery Stampings for Rs 270 crore over 5 years. This order is through the Joint Venture - Marelli Talbros Chassis Systems Pvt. Ltd, the company said.

Talbros Group portfolio includes Mercedes Benz dealership for passenger cars. Besides, some of the 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, GE, and QH Talbros besides a robust distribution network in the aftermarket.

For H1FY24, Talbros Automotive’s revenue from operations grew by 21 per cent to Rs 382 crore whereas Ebitda stood at Rs 59 crore with Ebitda margins at 15.3, which have significantly improved on year-on-year basis due to better sales mix and internal operational efficiencies.

On the back of the orders won in FY23 and H1FY24, the management said the company is all set to grow upwards with similar trend while efforts are put in to win more orders to strengthen its current order book.