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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Talbros Automotive Components Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:22 pm

Market Cap 1,787 Cr.
Current Price 289
High / Low396/220
Stock P/E20.6
Book Value 96.4
Dividend Yield0.24 %
ROCE21.4 %
ROE17.2 %
Face Value 2.00
PEG Ratio0.37

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Talbros Automotive Components Ltd

Competitors of Talbros Automotive Components Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IP Rings Ltd 250 Cr. 197262/142 82.80.00 %4.05 %2.95 % 10.0
Talbros Automotive Components Ltd 1,787 Cr. 289396/22020.6 96.40.24 %21.4 %17.2 % 2.00
Sundram Fasteners Ltd 24,393 Cr. 1,1621,506/1,00244.6 1730.59 %18.5 %16.2 % 1.00
Sintercom India Ltd 389 Cr. 141170/121363 36.70.00 %4.82 %1.15 % 10.0
Shriram Pistons & Rings Ltd 8,855 Cr. 2,0102,399/99319.1 4870.50 %27.9 %25.2 % 10.0
Industry Average13,350.91 Cr3,628.8057.98534.830.70%16.39%14.39%7.00

All Competitor Stocks of Talbros Automotive Components Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales137144148148153161159175183194199203204
Expenses120125130127134140136150157166168172175
Operating Profit17191921192123252528303130
OPM %13%13%13%14%12%13%14%14%14%15%15%15%15%
Other Income34444446677518
Interest3333233333433
Depreciation6656666666688
Profit before tax11141417151617212225287126
Tax %13%19%22%25%21%21%20%21%21%21%19%30%22%
Net Profit10111113121314171720235021
EPS in Rs1.611.801.822.041.932.122.232.742.823.253.698.073.34

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales341362384388325393483385444577647778
Expenses300322345344293354433349389504562664
Operating Profit4140394331395037567385115
OPM %12%11%10%11%10%10%10%9%13%13%13%15%
Other Income512941118181233182071
Interest211919181614161613121113
Depreciation101010151214181923232426
Profit before tax1422191414283414525670147
Tax %4%12%26%32%15%18%23%10%24%20%21%25%
Net Profit1419141012232612394556110
EPS in Rs2.253.132.291.571.983.714.281.986.347.289.0117.82
Dividend Payout %64%56%74%19%15%8%8%5%6%7%7%3%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)35.71%-26.32%-28.57%20.00%91.67%13.04%-53.85%225.00%15.38%24.44%96.43%
Change in YoY Net Profit Growth (%)0.00%-62.03%-2.26%48.57%71.67%-78.62%-66.89%278.85%-209.62%9.06%71.98%

Talbros Automotive Components Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:10%
3 Years:21%
TTM:16%
Compounded Profit Growth
10 Years:20%
5 Years:24%
3 Years:46%
TTM:28%
Stock Price CAGR
10 Years:28%
5 Years:66%
3 Years:74%
1 Year:-8%
Return on Equity
10 Years:13%
5 Years:15%
3 Years:17%
Last Year:17%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital12121212121212121212121212
Reserves94107115119143167186186235290355525583
Borrowings11912413312512112415515310389879994
Other Liabilities105102124139116161144128179178201221250
Total Liabilities330346384396393465498480529570656857939
Fixed Assets105108114117119128144153150157171212220
CWIP410912371335720
Investments3467546361537398127186214
Other Assets218224254270219271286273303311353451485
Total Assets330346384396393465498480529570656857939

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +292533333834163766525767
Cash from Investing Activity +-13-9-14-4-13-19-36-15-2-25-37-52
Cash from Financing Activity +-14-16-20-28-23-1518-21-65-27-16-18
Net Cash Flow2-1-112-0-11-1-13-3

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-78.00-84.00-94.00-82.00-90.00-85.00-105.00-116.00-47.00-16.00-2.0016.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days69707075101115102119127969599
Inventory Days201187213236200180148192156136138110
Days Payable142131154178188226157188229182176145
Cash Conversion Cycle128126129132112699312355495763
Working Capital Days929695102102928911796848685
ROCE %16%14%16%13%11%13%15%9%13%18%19%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters58.20%58.24%58.24%58.24%58.32%58.32%58.42%58.42%58.42%58.42%58.43%58.43%
FIIs0.02%0.21%0.05%0.03%0.00%0.09%0.00%0.00%0.02%0.01%0.13%0.55%
DIIs0.42%1.12%1.20%1.27%0.02%0.02%0.02%0.02%0.09%0.05%0.04%0.02%
Public41.36%40.43%40.51%40.46%41.66%41.59%41.56%41.57%41.46%41.51%41.40%40.99%
No. of Shareholders21,12023,69834,51535,83535,69135,91437,03336,88843,58259,44161,28862,962

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.0010.0010.0010.0010.00
Basic EPS (Rs.)17.8245.0236.3631.709.88
Diluted EPS (Rs.)17.8245.0236.3631.709.88
Cash EPS (Rs.)19.3954.6248.5545.8419.03
Book Value[Excl.RevalReserv]/Share (Rs.)87.02297.69244.53200.50160.32
Book Value[Incl.RevalReserv]/Share (Rs.)87.02297.69244.53200.50160.32
Revenue From Operations / Share (Rs.)126.08524.22467.57359.80312.09
PBDIT / Share (Rs.)20.6175.7367.3852.3534.87
PBIT / Share (Rs.)16.4256.5248.8433.7419.34
PBT / Share (Rs.)21.1547.3139.3137.494.57
Net Profit / Share (Rs.)15.2035.4030.0127.223.50
NP After MI And SOA / Share (Rs.)17.8245.0236.3631.709.88
PBDIT Margin (%)16.3514.4414.4014.5511.17
PBIT Margin (%)13.0210.7810.449.376.19
PBT Margin (%)16.779.028.4010.411.46
Net Profit Margin (%)12.056.756.417.561.12
NP After MI And SOA Margin (%)14.138.587.778.803.16
Return on Networth / Equity (%)20.4715.1214.8615.806.16
Return on Capital Employeed (%)17.2517.8318.6615.4010.61
Return On Assets (%)12.838.477.887.392.54
Long Term Debt / Equity (X)0.010.010.020.050.10
Total Debt / Equity (X)0.160.230.290.340.71
Asset Turnover Ratio (%)1.031.061.080.900.80
Current Ratio (X)1.381.301.231.161.04
Quick Ratio (X)0.900.790.760.760.61
Inventory Turnover Ratio (X)3.172.862.892.131.90
Dividend Payout Ratio (NP) (%)3.365.558.251.5718.21
Dividend Payout Ratio (CP) (%)2.723.895.460.997.08
Earning Retention Ratio (%)96.6494.4591.7598.4381.79
Cash Earning Retention Ratio (%)97.2896.1194.5499.0192.92
Interest Coverage Ratio (X)9.598.237.074.792.67
Interest Coverage Ratio (Post Tax) (X)4.874.854.152.151.40
Enterprise Value (Cr.)1701.36584.90645.28324.44221.38
EV / Net Operating Revenue (X)2.190.901.120.730.57
EV / EBITDA (X)13.376.267.765.025.14
MarketCap / Net Operating Revenue (X)2.080.780.970.560.22
Retention Ratios (%)96.6394.4491.7498.4281.78
Price / BV (X)3.021.381.861.020.44
Price / Net Operating Revenue (X)2.080.780.970.560.22
EarningsYield0.060.100.070.150.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Talbros Automotive Components Ltd as of November 22, 2024 is: 342.38

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, Talbros Automotive Components Ltd is Undervalued by 18.47% compared to the current share price 289.00

Intrinsic Value of Talbros Automotive Components Ltd as of November 22, 2024 is: 531.32

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, Talbros Automotive Components Ltd is Undervalued by 83.85% compared to the current share price 289.00

Last 5 Year EPS CAGR: 55.18%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (238.85 cr) compared to borrowings (117.38 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (458.92 cr) and profit (40.33 cr) over the years.
  1. The stock has a low average ROCE of 14.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 94.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 94.67, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Talbros Automotive Components Ltd:
    1. Net Profit Margin: 12.05%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 17.25% (Industry Average ROCE: 16.39%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 20.47% (Industry Average ROE: 14.39%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.87
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.9
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 20.6 (Industry average Stock P/E: 57.98)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.16
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Talbros Automotive Components Ltd. is a Public Limited Listed company incorporated on 08/09/1956 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L29199HR1956PLC033107 and registration number is 033107. Currently Company is involved in the business activities of Manufacture of other general purpose machinery ( fans intended for industrial applications, exhaust hoods for commercial, laboratory or industrial use; calendering or other rolling machines other than for metals or glass; gaskets and similar joints made of a combination of materials or layers of the same material and other general purpose machinery including manufacture of parts and accessories for general purpose machinery and equipment.). Company’s Total Operating Revenue is Rs. 577.24 Cr. and Equity Capital is Rs. 12.35 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Engine PartsGasket Plant- I, Faridabad Haryana 121003seema_narang@talbros.com
http://www.talbros.com
Management
NamePosition Held
Mr. Naresh TalwarChairman
Mr. Umesh TalwarVice Chairman & Mng.Director
Mr. Varun TalwarJoint Managing Director
Mr. Anuj TalwarJoint Managing Director
Mr. Tarun SinghalDirector
Mr. Deepak JainDirector
Mr. Anil Kumar MehraDirector
Mr. Navin JunejaDirector
Mr. Ajay Kumar VijDirector
Ms. Priyanka GulatiDirector
Mr. Amit BurmanDirector
Mr. Vidur TalwarDirector
Mr. Rajat VermaDirector
Mr. Rakesh VohraDirector

FAQ

What is the latest intrinsic value of Talbros Automotive Components Ltd?

The latest intrinsic value of Talbros Automotive Components Ltd as on 21 November 2024 is ₹342.38, which is 18.47% higher than the current market price of ₹289.00.

What is the Market Cap of Talbros Automotive Components Ltd?

The Market Cap of Talbros Automotive Components Ltd is 1,787 Cr..

What is the current Stock Price of Talbros Automotive Components Ltd as on 21 November 2024?

The current stock price of Talbros Automotive Components Ltd as on 21 November 2024 is ₹289.

What is the High / Low of Talbros Automotive Components Ltd stocks in FY 2024?

In FY 2024, the High / Low of Talbros Automotive Components Ltd stocks is 396/220.

What is the Stock P/E of Talbros Automotive Components Ltd?

The Stock P/E of Talbros Automotive Components Ltd is 20.6.

What is the Book Value of Talbros Automotive Components Ltd?

The Book Value of Talbros Automotive Components Ltd is 96.4.

What is the Dividend Yield of Talbros Automotive Components Ltd?

The Dividend Yield of Talbros Automotive Components Ltd is 0.24 %.

What is the ROCE of Talbros Automotive Components Ltd?

The ROCE of Talbros Automotive Components Ltd is 21.4 %.

What is the ROE of Talbros Automotive Components Ltd?

The ROE of Talbros Automotive Components Ltd is 17.2 %.

What is the Face Value of Talbros Automotive Components Ltd?

The Face Value of Talbros Automotive Components Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Talbros Automotive Components Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE