Talbros Automotive zooms over 100% since April; board to mull stock split

The company said its board will meet on August 8, 2023 to consider sub-division/splitting its existing equity shares

Shares of Talbros Automotive Components (TACL) hit a new high of Rs 863 as they surged 9 per cent on the BSE in Friday's intra-day trade, in an otherwise a weak market, after the company said its board will consider stock split in August.

The stock of the auto components and equipments company has surpassed its previous high of Rs 849 touched on July 10. In comparison, the S&P BSE Sensex was down 1.2 per cent at 66,763 at 11:58 AM.

Earlier today, TACL announced that a meeting of board of directors of the company will be held on August 8, 2023, inter-alia, to consider and approve the unaudited financial results of the company for the quarter ended June 30, 2023. The board will also consider alteration of equity share capital of the company by way of sub-division/splitting its existing equity shares having a face value of Rs 10 each.

A stock split/sub division of shares is a corporate action in which a company issues additional shares to shareholders, increasing the total by the specified ratio based on the shares they held previously. Companies often choose to split their stock to lower its trading price to a more comfortable range for most investors and to increase the liquidity of trading in its shares.

Since April, the stock price of TACL has more-than-doubled, zooming 110 per cent, during the period. In comparison, the S&P BSE Sensex has gained 13.2 per cent since then.

TACL is an auto component player with a diversified portfolio of gaskets, heat shields, forgings, suspension systems, anti-vibration products & hoses. Talbros Group portfolio includes Mercedes Benz dealership for passenger cars. Few of the marquee customers include Bajaj Auto, Tata Cummins, Volvo Eicher India, Ashok Leyland, among many others.

Earlier this month, TACL received new multi-year orders worth around Rs 400 crore. The said orders are from both, domestic and overseas customers across its business divisions, product segments, and joint ventures (JVs). These orders are to be executed over the next 5-7 years covering the company's product lines – gaskets, heat shields, forgings, and chassis.

TACL had said that they received orders from a leading established export OEM for the Electric Vehicles (EV) for Body in White - Stamped Metal Part for over Rs 165 crore over 5 years (Expected SOP for these products is FY25). This order is through the Joint Venture - Marelli Talbros Chassis Systems.