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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Talbros Automotive Components Ltd

Basic Stock Data

Last Updated: May 30, 2024, 6:16 am

Market Cap 1,771 Cr.
Current Price 287
High / Low351/105
Stock P/E22.6
Book Value 87.0
Dividend Yield0.21 %
ROCE21.6 %
ROE17.3 %
Face Value 2.00
PEG Ratio0.41

Competitors of Talbros Automotive Components Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sundram Fasteners Ltd 24,615 Cr. 1,1691,341/1,00247.2 1630.56 %18.5 %16.2 % 1.00
Sintercom India Ltd 362 Cr. 131140/100315 36.60.00 %4.59 %1.15 % 10.0
Rane Engine Valve Ltd 270 Cr. 374506/26217.5 1670.00 %12.9 %13.7 % 10.0
Shriram Pistons & Rings Ltd 8,572 Cr. 1,9462,206/73019.5 4370.26 %28.3 %25.4 % 10.0
Banco Products (India) Ltd 4,523 Cr. 634734/22017.8 1463.47 %25.8 %23.9 % 2.00
Industry Average7,668.40 Cr850.8083.40189.920.86%18.02%16.07%6.60

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales130158137144148148153161159175183194199
Expenses111136120125130127134140136150157166168
Operating Profit19221719192119212325252830
OPM %14%14%13%13%13%14%12%13%14%14%14%15%15%
Other Income52434444446677
Interest3333332333334
Depreciation6666566666666
Profit before tax15361114141715161721222528
Tax %27%24%13%19%22%25%21%21%20%21%21%21%19%
Net Profit11271011111312131417172023
EPS in Rs1.714.451.611.801.822.041.932.122.232.742.823.253.69

Last Updated: May 11, 2024, 5:16 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 1:00 am

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%

Growth

Compounded Sales Growth
10 Years:7%
5 Years:10%
3 Years:19%
TTM:21%
Compounded Profit Growth
10 Years:15%
5 Years:22%
3 Years:59%
TTM:50%
Stock Price CAGR
10 Years:35%
5 Years:48%
3 Years:89%
1 Year:222%
Return on Equity
10 Years:12%
5 Years:13%
3 Years:15%
Last Year:17%

Last Updated: April 13, 2024, 9:20 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital12121212121212121212121212
Reserves8594107115119143167186186235290355438
Borrowings116119124133125121124155153103898785
Other Liabilities109105102124139116161144128179178201220
Total Liabilities322330346384396393465498480529570656756
Fixed Assets107105108114117119128144153150157171182
CWIP14109123713358
Investments23467546361537398127195
Other Assets211218224254270219271286273303311353371
Total Assets322330346384396393465498480529570656756

Reserves and Borrowings Chart

Talbros Automotive Components Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 272925333338341637665257
Cash from Investing Activity -7-13-9-14-4-13-19-36-15-2-25-37
Cash from Financing Activity -18-14-16-20-28-23-1518-21-65-27-16
Net Cash Flow22-1-112-0-11-1-13

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-78.00-84.00-94.00-82.00-90.00-85.00-105.00-116.00-47.00-16.00-2.00115.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days70697070751011151021191279695
Inventory Days173201187213236200180148192156136138
Days Payable144142131154178188226157188229182176
Cash Conversion Cycle991281261291321126993123554957
Working Capital Days809296951021029289117968486
ROCE %18%16%14%16%13%11%13%15%9%13%18%19%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters58.20%58.20%58.24%58.24%58.24%58.32%58.32%58.42%58.42%58.42%58.42%58.43%
FIIs0.01%0.02%0.21%0.05%0.03%0.00%0.09%0.00%0.00%0.02%0.01%0.13%
DIIs0.42%0.42%1.12%1.20%1.27%0.02%0.02%0.02%0.02%0.09%0.05%0.04%
Public41.37%41.36%40.43%40.51%40.46%41.66%41.59%41.56%41.57%41.46%41.51%41.40%
No. of Shareholders20,89321,12023,69834,51535,83535,69135,91437,03336,88843,58259,44161,288

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)45.0236.3631.709.8821.37
Diluted EPS (Rs.)45.0236.3631.709.8821.37
Cash EPS (Rs.)54.6248.5545.8419.0328.17
Book Value[Excl.RevalReserv]/Share (Rs.)297.69244.53200.50160.32161.00
Book Value[Incl.RevalReserv]/Share (Rs.)297.69244.53200.50160.32161.00
Revenue From Operations / Share (Rs.)524.22467.57359.80312.09391.11
PBDIT / Share (Rs.)75.7367.3852.3534.8747.03
PBIT / Share (Rs.)56.5248.8433.7419.3432.53
PBT / Share (Rs.)47.3139.3137.494.5719.95
Net Profit / Share (Rs.)35.4030.0127.223.5013.67
NP After MI And SOA / Share (Rs.)45.0236.3631.709.8821.37
PBDIT Margin (%)14.4414.4014.5511.1712.02
PBIT Margin (%)10.7810.449.376.198.31
PBT Margin (%)9.028.4010.411.465.10
Net Profit Margin (%)6.756.417.561.123.49
NP After MI And SOA Margin (%)8.587.778.803.165.46
Return on Networth / Equity (%)15.1214.8615.806.1613.27
Return on Capital Employeed (%)17.8318.6615.4010.6117.35
Return On Assets (%)8.477.887.392.545.30
Long Term Debt / Equity (X)0.010.020.050.100.12
Total Debt / Equity (X)0.230.290.340.710.69
Asset Turnover Ratio (%)1.061.080.900.801.02
Current Ratio (X)1.301.231.161.041.05
Quick Ratio (X)0.790.760.760.610.63
Inventory Turnover Ratio (X)2.862.892.131.902.42
Dividend Payout Ratio (NP) (%)5.558.251.5718.217.02
Dividend Payout Ratio (CP) (%)3.895.460.997.084.18
Earning Retention Ratio (%)94.4591.7598.4381.7992.98
Cash Earning Retention Ratio (%)96.1194.5499.0192.9295.82
Interest Coverage Ratio (X)8.237.074.792.673.74
Interest Coverage Ratio (Post Tax) (X)4.854.152.151.402.09
Enterprise Value (Cr.)584.90645.28324.44221.38387.71
EV / Net Operating Revenue (X)0.901.120.730.570.80
EV / EBITDA (X)6.267.765.025.146.68
MarketCap / Net Operating Revenue (X)0.780.970.560.220.53
Retention Ratios (%)94.4491.7498.4281.7892.97
Price / BV (X)1.381.861.020.441.30
Price / Net Operating Revenue (X)0.780.970.560.220.53
EarningsYield0.100.070.150.130.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹340.87

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.

Undervalued: 18.77% compared to the current price ₹287

Intrinsic Value: ₹528.97

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 84.31% compared to the current price ₹287

Last 5 Year EPS CAGR: 55.18%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (193.85 cr) compared to borrowings (118.00 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 14.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 94.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 97.67, 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: 6.75%
      • 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: 17.83% (Industry Average ROCE: 18.02%)
      • 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%: 15.12% (Industry Average ROE: 16.07%)
      • 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): 4.85
      • 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: 0.79
      • 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: 22.6 (Industry average Stock P/E: 83.4)
      • 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: 0.23
      • 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

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

FAQ

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

The latest fair value of Talbros Automotive Components Ltd is ₹340.87.

What is the Market Cap of Talbros Automotive Components Ltd?

The Market Cap of Talbros Automotive Components Ltd is 1,771 Cr..

What is the current Stock Price of Talbros Automotive Components Ltd as on 30 May 2024?

The current stock price of Talbros Automotive Components Ltd as on 30 May 2024 is ₹287.

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 351/105.

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

The Stock P/E of Talbros Automotive Components Ltd is 22.6.

What is the Book Value of Talbros Automotive Components Ltd?

The Book Value of Talbros Automotive Components Ltd is 87.0.

What is the Dividend Yield of Talbros Automotive Components Ltd?

The Dividend Yield of Talbros Automotive Components Ltd is 0.21 %.

What is the ROCE of Talbros Automotive Components Ltd?

The ROCE of Talbros Automotive Components Ltd is 21.6 %.

What is the ROE of Talbros Automotive Components Ltd?

The ROE of Talbros Automotive Components Ltd is 17.3 %.

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