Run up a lot but the company is still available at good valuation given the points:
-
They are making axle shafts for PV as well as CV. GNA axles which is solely in CV is trading at almost double the valuation of Talbros Engineering. PV is on uptrend and less cyclic when compared to CV.
-
The company has less dependency on exports therefore lesser impact supply chain disruptions, freight cost than the peer.
-
The most interesting thing I found about the company is they might be supplying axles to new Mahindra Scorpio which has got more than one lakh booking in half an hour. They have good relationship with M&M, it is also possible that the company is also supplying axle shafts for xuv700. Below is the screenshot i found on the official website of Talbros Engineering
Interestingly, the revenue of the company has increased sharply in recent past & launch of xuv700 and Scorpio might be the reason. The company has also purchased land for future growth plans. Promoters also increasing the stakes. Overall it’s looks interesting.
Disclaimer: invested
Subscribe To Our Free Newsletter |