This company has been in running since 1980. They manufacture buses for Tata Motors and are involved in sheet metal pressings.
As of this year the revenue split between Bus manufacturing is 87% compared to 13% from sheet metal business.
They make school buses, office buses and state transport buses.
REVIEW – HRTC’s new BS6 buses – 28 & 47 seater | TATA ACGL | Himbus
Compared to last year, Company’s Sales (with other income) for the financial year 2022-23
was Rs 514.15 Crores as against Rs. 289.07 crores (net of taxes) in the
preceding financial year. The Company’s Profit before tax during the financial
year 2022-23 was at Rs. 37.12 crores (after exceptional income/(expense)
and before other comprehensive loss) as against profit of Rs. 3.34 crores in
the preceding financial year.
Company is poised to also get into manufacturing/assembling EV buses and new staff/school buses. Seeing the development in roads & infrastructure I think Buses would be a definite part of that growth.
The story looks good to me. It’s a small cap company promoted by one of the biggest companies in India so you know its not going anywhere for the next few decades.
At a current PE of 30 and 4.3x book value i’m not sure about the valuation side of things. Insight on that would be appreciated.
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