Company has an RoIIC of 17+% and a 10-year reinvestment rate of 82%. For a 300 cr market cap co, I’d be happier if they reinvest than give dividends.
As for product mix, here are the numbers:
Gaskets
434 cr
14% YoY Growth
13.7% EBITDA Margin
50% Indian market share – leader
Forgings – nuts, gears
219 cr
7% Growth
15% EBITDA Margin
51% export market share
NLK – JV wth Nippon making gaskets
89 Cr Income; 35.6 Talbros share
33% PAT margin
MTCS – JV with Marelli, Italy making chassis components like control arms, suspension links etc
210 rev (27% increase), 105 share talbros
11% PAT margin
TMR – Talbros Marugo Rubber makes rubber molded products
Best supplier for Maruti Suzuki
85.3 cr (55% increase), 43 cr Talbros share
6.5% PAT margin
Expect higher margin businesses to increase consol margins further. Moreover, it will be a LONG while before EV growth over ICE will incapacitate core business of gaskets, if at all. Co’s EV product segment expansion should balance it out either way.
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