Thread by @LnprCapital

Talbros Automotive Analysis !!

A detailed thread below !! 🧵🧵

About Talbros -

Talbros Auto is a diversified auto component player with presence across automobile categories in passenger vehicles, commercial vehicles, two wheelers, three wheelers, agricultural machinery, off loaders & industrial vehicles.

Q3 Numbers -

In Q3FY22 revenue were at Rs150cr, an increase of 14% YoY
EBITDA at Rs21cr, down by 0.1% YoY
PAT at Rs 11cr, up by 6% YoY

Customer Base -

Talbros have a highly diversified customer base across the globe

Talbros have strategic partnerships & JVs with companies around the globe :-

💠Nippon Leakless Talbros Pvt ltd (NLK) - One of the largest global manufacturer of gasket & a major supplier of Honda. 100% sales to OEMs to Honda & Hero.

Product - Gaskets.

💠 Marelli Talbros Chassis Systems Pvt ltd (MTC) - Magneti Marelli spa is a Fiat Group co with annual revenue of over Euro 6Bill. Talbros has a 50:50 partnership with them & they commenced production in April 2012. They have significant share of Control Arms business from Maruti*

*Suzuki & Tata.

Products - Control Arms, Front Axle, Rear Axle.

💠Talbros Marugo Rubber Pvt ltd (TMR) - They are global leader in supply of Anti-vibration product & Hoses. The 50:50 partnership started production in Feb 2013. 100% sales to OEMs mainly Maruti Suzuki.

*

* Products - Engine Mounts, Suspension bushes, Strut mounts, Rubber bushes, Mufflers & Hangers, Hoses.

💠Technical Assistance Agreement with SANWA -

Talbros entered into a Technical Assistance Agreement (TAA) with it's Japanese partner 'Sanwa Packaging Industry Co Ltd' for light weight Aluminium heat shields. The name of the product is 'NIMBUS'. It is world's first *

* aluminium light weight heatshield for exhaust systems.

The products are used for automotive application & is a futuristic product technology which offers value added features like Noise Reduction, Emission Control, Heat Insulation etc.

The Joint Venture's performance highlight :-

Total income from operations -

Venturing into EVs -

Talbros is supplying parts for Plug-in hybrid EVs to OEMs globally.

Marelli Talbros is working on new RFQ's for several Indian & Global OEMs for supporting development of future EVs.

Marelli Talbros supplies Critical Suspensions to EVs .

Products Overview of Talbros :-

💠Gasket Business -

40% market share in Gasket almost 3x the nearest competitor.

Market leader in Two wheeler, Three wheeler, Agri & off loaders, HCV & LCV segment.

100% Asbestos free products.

Value added features like Noise reduction, *

* Emission control, Heat Insulation at challenging temperature widely used in EVs.

💠 Forgings -

One stop solution for Hot Forging

Installation of 2500 ton press completed.

Strong presence in overseas market & supplier of top Tier 1 companies.

Received order worth Rs 25crs for Plugin Hybrid Ev.

Talbros's Investors -

Promoters - 58.2%
DII - 1.9%
Public - 41.3%

Superstar investor @VijayKedia1 ji holding 2.3% & Dolly Khanna ji holding 1.7%

Key Risks -

On geopolitical front, trade uncertainties between major auto markets will continue to pose challenges.

Semiconductor shortage have led to supply chain volatility. The consumer sector has made bookings of around 18months in advance compared to 2-3 months by autos.

Rise in raw material prices can affect their margins.

Our Analysis -

Gasket business is poised to gain traction on the back of improving share of business with OEMs & new export orders.

Recovery in demand is expected from all the markets as the Covid curbs are lifted & normalcy in economy is visible.

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@AimInvestments @saketreddy @LuckyInvest_AK @drprashantmish6 @sahil_vi @ishmohit1 @VijayKedia1 @Atulsingh_asan @safiranand @nid_rockz @Maaachaaa69