Auto components company bags new order worth Rs 204 crore from Tata Motors Passenger Vehicle Ltd

Auto components company bags new order worth Rs 204 crore from Tata Motors Passenger Vehicle Ltd

Kiran Shroff
/ Categories: Trending, Mindshare

The stock is up by 81.6 per cent from its 52-week low of Rs 78.91 per share.

Autoline Industries Limited has entered into a significant contract with Tata Motors Passenger Vehicle Limited to manufacture tools and supply sheet metal parts and assemblies. This contract, valued at Rs 147 crore annually for parts and a one-time payment of Rs. 57 crore for tooling, is not considered a related party transaction. The agreement is expected to be operational by the third quarter of the current financial year (FY25) with production ramping up in August 2025.

Earlier, Autoline Industries Limited (AIL) announced a strategic partnership with Hamsa Solar Asset Series 4 Private Limited (HSSAPL), a newly formed special purpose vehicle (SPV). At the core of this collaboration is a Power Purchase Agreement (PPA) where HSSAPL will construct and operate a solar power plant in Bhalvani Village, Maharashtra, to exclusively supply electricity to AIL. As part of this partnership, AIL has made an equity investment of Rs 2,84,75,000 in HSSAPL, securing a 26 per cent stake in the SPV and aligning with captive power regulations. This significant investment grants AIL the right to appoint a director to the HSSAPL board and control over key corporate decisions. The 25-year PPA ensures a stable power supply for AIL while providing a consistent revenue stream for HSSAPL, outlining terms for power delivery, pricing, and other commercial aspects of the transaction.

DSIJ’s ‘Micro Marvel' service recommends micro-cap stocks with the potential to grow multifold in long run. If this interests you, do download the service details here.

About the Company

Autoline Industries Ltd is a mid-sized Indian automotive component manufacturer established in 1996. Specializing in sheet metal stampings, welded assemblies, and modules, the company caters to leading domestic and international OEMs. Its product portfolio encompasses a wide range, including foot control modules, parking brakes, hinges, exhaust systems, and tubular structures. With a strong emphasis on design and engineering, Autoline offers comprehensive services from concept to production, leveraging advanced CAD/CAE tools.

The company boasts a manufacturing footprint across India, equipped with a capacity to process 1.20 lakh MTPA of steel. Autoline is committed to delivering high-quality components to the automotive industry. The company has a market cap of over Rs 550 crore and has delivered good profit growth of 18.3 per cent CAGR over the last 5 years. The stock is up by 81.6 per cent from its 52-week low of Rs 78.91 per share.

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

Also Read: Deepinder Goyal's company stock doubles in 2024: Company announced skyrocketing quarterly results and PAT jumped 12,550 per cent!

Previous Article Heavy Buying Power Transmission and Distribution Stock Hits Upper Circuit for 2 Consecutive Days; PAT Surges by 380 per cent in Q1 FY25!
Next Article Rs 8,994 million Order Book: High-Energy Materials Manufacturer for Defence Industry’s Share Hit Upper Circuit Today; FII Bought 1,88,164 Shares!
Rate this article:
3.9

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR