Vijay Kedia’s & Dolly Khanna’s portfolio multibagger auto components & equipment stock saw heavy volume breakout; Hit 52-week high on July 11

The stock gave multibagger returns of 130 per cent returns in just 1 year and a whopping 500 per cent in 3 years.

Today, one of the Top Gainers on BSE, shares of Talbros Automotive Components Limited (TACL) gained 5.76 per cent and made a fresh new 52-week high of Rs 395 per share from its previous closing of Rs 373.50 per share. At the closing bell, shares of the company were trading at Rs 369.20 per share, down 1.15 per cent with a spurt in volume by more than 3.93 times on BSE.

Established in 1956, Talbros Automotive Components Ltd, the leading manufacturer of the Talbros Group, began by making gaskets alongside Coopers Payen of the UK. Today, Talbros has become a powerhouse brand in India for gaskets, chassis parts, rubber products, and forgings. They even hold a Mercedes Benz dealership for passenger cars. With 10 manufacturing plants across Haryana, Uttarakhand, and Maharashtra, and an R&D centre in Faridabad, Talbros (alongside their joint ventures) boasts the capability to design, develop, and competitively manufacture products tailored to client needs. Technical collaborations with Nippon Leakless Corporation and Sanwa Packaging of Japan further enhance their expertise. Their impressive client list includes major names like Bajaj Auto, Tata Motors, Hero MotoCorp, Honda, Mahindra & Mahindra, and Maruti Suzuki. Beyond supplying to original equipment manufacturers, Talbros also boasts a strong aftermarket distribution network, solidifying their position as a key player in the Indian and International Automotive Industry.

Earlier, TACL secured a significant multi-year contract valued at approximately Rs 1,000 crore through their joint venture, Marelli Talbros Chassis Systems Private Limited (MTCS). This eight-year deal, starting from Q4FY25, involves supplying suspension arms for both traditional gasoline-powered vehicles and new electric vehicle platforms across Europe, the Middle East, Africa, and North America. To fulfil this order, MTCS's Pune plant will undergo a Rs 65 crore expansion funded by internal reserves and debt. This win not only brings a new European customer to the TACL group but also strengthens their presence in a competitive market and opens doors for further partnerships in the region. Building on last year's Rs 980 crore in orders, which included Rs 475 crore for electric vehicles and Rs 415 crore for exports, this contract positions TACL for continued growth and profitability.

The company has a market cap of Rs 2,279 crore and has delivered good profit growth of 24.50 per cent CAGR over the last 5 years. In a recent development, the Board of Directors for the high-performing company endorsed a stock split, wherein each original equity share, valued at Rs 10, underwent sub-division into 5 new equity shares, each with a face value of Rs 2. The stock split took effect on Friday, October 27, 2023.

As of March 2024, 2 ace investors, Vijay Kedia & Dolly Khanna own 1.01 per cent and 1.23 per cent stake respectively in the company. Furthermore, FIIs have increased their stake to 0.13 per cent in March 2024 compared to 0.01 per cent in December 2023. The stock gave multibagger returns of 130 per cent returns in just 1 year and a whopping 500 per cent in 3 years. Investors should keep an eye on this small-cap auto stock.

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

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