Market Price: ₹743 Recommendation: BUY Target: ₹996 Time Horizon: 1 Year
Talbros Automotive Components Limited reported net revenue of ₹174.95 crores for the quarter ended March 31, 2023, compared to ₹148.05 crores for March 31, 2022. Profit After Tax was ₹16.88 crores for the quarter ended March 31, 2023, compared to ₹12.60 crores during the corresponding quarter of the previous year, respectively.
OVERVIEW
BENCHMARK COMPARISON
Beta: 1.11 |
Alpha: 55.58 |
Risk Reward Ratio: 1.61 |
Margin of Safety: 25% |
STOCK DATA
52 Week H/L |
764/369 |
Market Cap (crores) |
917 |
Face Value (₹) |
10.00 |
Book Value |
297.69 |
EPS TTM |
45.02 |
NSE Code |
TALBROAUTO |
|
Sep-22 |
Dec-22 |
Mar-23 |
Promoter |
58.32 |
58.32 |
58.42 |
Public |
41.66 |
41.59 |
41.56 |
FIIs |
0.00 |
0.09 |
0.00 |
DIIs |
0.02 |
0.02 |
|
SWOT ANALYSIS
STRENGTH
WEAKNESS
OPPORTUNITIES
THREAT
AUTO COMPONENTS INDUSTRY ANALYSIS
FINANCIAL OVERVIEW
Quarterly (INR in lakhs) |
Mar-23 |
Dec-22 |
Sep-22 |
Jun-22 |
Mar-22 |
Revenue from Operations |
17,494.60 |
15,853.12 |
16,073.35 |
15,297.25 |
14,804.60 |
Other income |
192.34 |
112.98 |
143.98 |
170.65 |
186.20 |
Total Income |
17,686.94 |
15,966.10 |
16,217.33 |
15,467.90 |
14,990.80 |
|
|
|
|
|
|
Total Expenditure |
15,587.78 |
14,217.02 |
14,608.67 |
13,947.53 |
13,283.48 |
EBIT |
2,099.16 |
1,749.08 |
1,608.66 |
1,520.37 |
1,707.32 |
|
|
|
|
|
|
Finance cost |
316.15 |
327.08 |
265.03 |
227.61 |
278.74 |
EBT Before Profit/(Loss) of JV |
1,783.01 |
1,422.00 |
1,343.63 |
1,292.76 |
1,428.58 |
|
|
|
|
|
|
Profit/(Loss) of JV |
359.02 |
304.61 |
302.67 |
221.07 |
257.91 |
PBT |
2,142.03 |
1,726.61 |
1,646.30 |
1,513.83 |
1,686.49 |
|
|
|
|
|
|
Tax Expenses |
453.54 |
352.80 |
341.11 |
323.62 |
425.82 |
PAT |
1,688.49 |
1,373.81 |
1,305.19 |
1,190.21 |
1,260.67 |
PROFIT AND LOSS STATEMENT (₹ in lakhs)
|
Mar-21 |
Mar-22 |
Mar-23 |
Revenue from Operations |
44,419.72 |
57,724.03 |
64,718.32 |
Other Income |
895.42 |
767.36 |
619.95 |
Total Income |
45,315.14 |
58,491.39 |
65,338.27 |
|
|
|
|
Cost of Goods sold |
23,824.78 |
30,646.14 |
35,112.28 |
Gross Profit |
21,490.36 |
27,845.25 |
30,225.99 |
|
|
|
|
Excise Duty |
- |
- |
- |
Employee Benefits Expense |
5,387.15 |
6,510.52 |
7,069.39 |
Other Expenses |
9,639.84 |
13,016.75 |
13,806.99 |
EBITDA |
6,463.37 |
8,317.98 |
9,349.61 |
|
|
|
|
Depreciation and Amortisation Expense |
2,298.28 |
2,288.65 |
2,372.34 |
EBIT |
4,165.09 |
6,029.33 |
6,977.27 |
|
|
|
|
Finance Costs |
1,348.66 |
1,176.73 |
1,135.87 |
EBT before Share of Profit/(Loss) of Joint Venture and Associates |
2,816.43 |
4,852.60 |
5,841.40 |
|
|
|
|
Share of Profit/(Loss) of Joint Venture and Associates |
552.27 |
783.67 |
1,187.37 |
EBT before Exceptional Items |
3,368.70 |
5,636.27 |
7,028.77 |
|
|
|
|
Exceptional Items |
1,811.94 |
- |
- |
EBT |
5,180.64 |
5,636.27 |
7,028.77 |
|
|
|
|
Tax Expense |
1,267.57 |
1,147.65 |
1,471.07 |
PAT Non-Controlling Interests |
3,913.07 |
4,488.62 |
5,557.70 |
|
|
|
|
Non-Controlling Interests |
- |
- |
- |
PAT |
3,913.07 |
4,488.62 |
5,557.70 |
|
|
|
|
EPS |
|
|
|
Basic |
31.70 |
36.36 |
45.02 |
Diluted |
31.70 |
36.36 |
45.02 |
|
|
|
|
Number of Shares |
|
|
|
Basic |
123.46 |
123.46 |
123.46 |
Diluted |
123.46 |
123.46 |
123.46 |
Balance Sheet (₹ in lakhs)
|
Mar-21 |
Mar-22 |
Mar-23 |
ASSETS: |
|
|
|
Non-Current Assets: |
|
|
|
Property, Plant and Equipment |
14,538.48 |
15,330.72 |
16,796.34 |
Capital Work-in-Progress |
303.96 |
325.02 |
477.73 |
Investment Property |
313.95 |
297.96 |
282.14 |
Intangible Assets |
123.52 |
92.20 |
67.31 |
Intangible Assets under development |
- |
- |
- |
Investment Accounted for Using the Equity method |
5,169.54 |
5,953.53 |
7,136.47 |
Finance Assets: |
|
|
|
Investments |
2,146.00 |
3,838.14 |
5,527.32 |
Loans |
- |
- |
- |
Other Financial Assets |
159.47 |
186.00 |
279.83 |
Current Tax Assets |
- |
213.16 |
224.05 |
Other Non-Current Assets |
246.82 |
452.98 |
364.30 |
Total Non-Current Assets |
23,001.74 |
26,689.71 |
31,155.49 |
|
|
|
|
Current Assets: |
|
|
|
Inventories |
10,214.53 |
11,425.41 |
13,253.21 |
Financial Assets: |
|
|
|
Trade Receivables |
15,496.68 |
15,146.66 |
16,853.21 |
Cash and Cash Equivalents |
274.98 |
205.55 |
528.41 |
Other Bank Balances |
907.41 |
332.05 |
281.95 |
Loans |
441.11 |
428.52 |
388.20 |
Other Financial Assets |
300.97 |
233.86 |
140.36 |
Other Current Assets |
2,249.90 |
2,488.82 |
2,977.58 |
Total Current Assets |
29,885.58 |
30,260.87 |
34,422.92 |
|
|
|
|
Total Assets |
52,887.32 |
56,950.58 |
65,578.41 |
|
|
|
|
EQUITY AND LIABILITIES: |
|
|
|
Equity: |
|
|
|
Equity Share Capital |
1,234.56 |
1,234.56 |
1,234.56 |
Other Equity |
23,517.97 |
28,953.67 |
35,517.35 |
Equity Attributable to the Owners |
24,752.53 |
30,188.23 |
36,751.91 |
|
|
|
|
Non-Controlling Interest |
- |
- |
- |
Total Equity |
24,752.53 |
30,188.23 |
36,751.91 |
|
|
|
|
Liabilities: |
|
|
|
Non-Current Liabilities: |
|
|
|
Financial Liabilities |
|
|
|
Borrowings |
1,410.79 |
761.68 |
608.48 |
Lease Liabilities |
17.07 |
3.72 |
- |
Other Financial Liabilities |
6.11 |
9.05 |
22.89 |
Provisions |
225.35 |
204.03 |
198.43 |
Deferred Tax Liabilities |
550.03 |
1,105.06 |
1,453.21 |
Other Non-Current Liabilities |
66.68 |
24.49 |
78.86 |
Total Non-Current Liabilities |
2,276.03 |
2,108.03 |
2,361.87 |
|
|
|
|
Current Liabilities: |
|
|
|
Financial Liabilities: |
|
|
|
Borrowings |
8,870.91 |
8,137.91 |
8,075.13 |
Lease Liabilities |
19.42 |
15.00 |
5.63 |
Trade Payables: |
|
|
|
Total Outstanding Dues of Micro and Small Enterprises |
162.40 |
103.93 |
305.91 |
Other Creditors |
14,777.06 |
15,210.46 |
16,586.20 |
Other Financial Liabilities |
908.38 |
707.14 |
839.76 |
Other Current Liabilities |
395.27 |
376.32 |
531.32 |
Provisions |
89.13 |
103.56 |
120.68 |
Current Tax Liabilities |
636.19 |
- |
- |
Total Current Liabilities |
25,858.76 |
24,654.32 |
26,464.63 |
|
|
|
|
Total Equity & Liabilities |
52,887.32 |
56,950.58 |
65,578.41 |
Cash Flow Statement (₹ in lakhs)
|
Mar-21 |
Mar-22 |
Mar-23 |
Net Profit Before Tax |
5,180.64 |
5,636.27 |
7,028.77 |
Net Cash from Operating Activities |
6,619.09 |
5,168.83 |
5,658.48 |
Net Cash Used for Investing Activities |
-189.25 |
-2,534.61 |
-3,704.81 |
Net Cash From (Used For) Financing Activities |
-6,525.80 |
-2,703.65 |
-1,630.81 |
Net Increase in Cash and Cash Equivalents |
-95.96 |
-69.43 |
322.86 |
Cash And Cash Equivalents at The Beginning of The Year |
370.94 |
274.98 |
205.55 |
Cash And Cash Equivalents at The End of the Year |
274.98 |
205.55 |
528.41 |
Ratio Analysis
|
Mar-21 |
Mar-22 |
Mar-23 |
Profitability Ratio |
|
|
|
Gross Profit |
48.38% |
48.24% |
46.70% |
EBITDA Margin |
14.55% |
14.41% |
14.45% |
EBIT Margin |
9.38% |
10.45% |
10.78% |
Pre-Tax Margin |
11.66% |
9.76% |
10.86% |
Net Profit Margin |
8.81% |
7.78% |
8.59% |
|
|
|
|
Return on Investment |
|
|
|
Return on Asset – ROA |
8% |
8% |
9% |
Return on Capital Employed – ROCE |
17% |
20% |
20% |
Return on Equity – ROE |
18% |
16% |
17% |
|
|
|
|
Liquidity Ratio (x) |
|
|
|
Current ratio |
1.16 |
1.23 |
1.30 |
Quick Ratio |
0.76 |
0.76 |
0.80 |
|
|
|
|
Solvency Ratio |
|
|
|
Debt to Equity |
0.06 |
0.03 |
0.02 |
Interest Coverage Ratio |
3 |
5 |
6 |
Technical Analysis
CONCALL (Q4FY2023)
Recommendation Rationale
Valuation
Estimated Income Statement (₹ in lakhs)
|
Mar-24 |
Mar-25 |
Mar-26 |
Mar-27 |
Mar-28 |
|
2024-E |
2024-E |
2026-E |
2027-E |
2028-E |
Revenue |
73,242.04 |
82,102.17 |
92,034.43 |
1,03,168.57 |
1,15,650.05 |
COGS |
38,944.74 |
43,663.58 |
48,954.20 |
54,885.87 |
61,536.27 |
Gross Profit |
34,297.30 |
38,438.59 |
43,080.23 |
48,282.69 |
54,113.79 |
Employee Expenses |
8,054.90 |
9,030.90 |
10,125.15 |
11,351.99 |
12,727.49 |
Other Expenses |
15,921.11 |
17,850.24 |
20,013.11 |
22,438.06 |
25,156.83 |
EBITDA |
10,321.28 |
11,557.45 |
12,941.96 |
14,492.64 |
16,229.47 |
Depreciation |
2,534.44 |
2,609.69 |
2,726.14 |
2,884.35 |
3,085.54 |
EBIT |
7,786.84 |
8,947.76 |
10,215.82 |
11,608.30 |
13,143.93 |
Financial Cost |
1,267.67 |
1,456.66 |
1,663.09 |
1,889.78 |
2,139.78 |
EBT before Share of Profit/(Loss) of Joint Venture and Associates |
6,519.18 |
7,491.10 |
8,552.73 |
9,718.51 |
11,004.15 |
Share of Profit/(Loss) of Joint Venture and Associates |
1,325.14 |
1,522.70 |
1,738.50 |
1,975.46 |
2,236.79 |
EBT |
7,844.32 |
9,013.81 |
10,291.22 |
11,693.98 |
13,240.95 |
Tax expenses |
1,641.76 |
1,886.52 |
2,153.88 |
2,447.46 |
2,771.23 |
PAT |
6,202.56 |
7,127.28 |
8,137.35 |
9,246.51 |
10,469.71 |
Nayan Nahar Shubham Titvilasi
Equity Research Analyst Equity Research Analyst
Ph: 8149629086 Ph: 7415440968
Email: nayannahar23@gmail.com Email: shubham.titvilasi@gmail.com
Disclaimer: This report is only for the information of our customer Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind.
DISCLAIMER |
This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.