Talbros Automotive hits fresh 52-week high on multi-year order win

Talbros Automotive Components Limited’s (TACL) 50 per cent JV company, Marelli Talbros Chassis Systems Pvt Ltd has bagged a multi-year order from a large European car manufacturer. The order is for supplying body-in-white (BIW) design parts. 

The annual order value is estimated at Rs 14.4 crore while the total order value is estimated at approximately Rs 92 crore over the life of the contract. No major investments will be required to fulfill this order as the JV company has sufficient capacity. 

The order supplies will begin in Q1FY22 from the JV company’s plant in Pune (Maharashtra). 

The company has informed that this order is its second large win in the current financial year. This order will further enhance revenue growth visibility and will lead to operating leverage benefits due to the low level of Capex required to fulfill this order. 

The company is in the process of executing an order book of USD 31 million over the next five years for both domestic and the international market. Of its domestic sales, 36 per cent is from two and three-wheelers, 28 per cent comes from the passenger car segment, 18 per cent comes from the heavy-duty combustion vehicles, 11 per cent comes from the Agri and the off-roader. 

Talbros Automotive Components manufactures automotive & industrial gaskets in collaboration with Coopers Payen of UK. TACL, together with JV alliances, has 8 manufacturing facilities in Haryana, Uttarakhand, and Maharashtra along with one materials division in Gurugram and a R&D technology centre at Faridabad.  

On Tuesday, the stock of Talbros Automotive made a new 52-week high of Rs 184.55. During the early morning session, it surged 8.7 per cent from its previous close of Rs 169.80.