Sir, I have 1 question, as I was going through rebalances that you have mentioned every week, I can see, whenever stock makes entry into portfolio, its already into consolidation.

e,g olectra, Infibeam (11 march, 24), EIH (11 March) and many others. Please help if I am missing something

Agree to what you said. As the rate cycle peaks out and starts to reverse, NBFSs and particularly fundamentally strong one will be re rated. Ugro has incredible addressable market and it all depends on how fast they can raise funds, at what price and lend them to good quality customers.

Talbros Auto –

Q4 and FY 24 Concall and results highlights –

Company’s operating divisions –

Sealing Division – Sealing solutions, cylinder head gaskets, secondary gaskets, plastic moulded components and heat shields. FY 24 sales @ 515 vs 434 cr YoY. EBITDA @ 81 cr

Forging Division – making products like – Vehicle Towing solutions, Rear Axle support brace, gear blanks, tube yokes, flange yokes etc. FY 24 sales @ 277 vs 219 cr YoY. EBITDA @ 47 cr

Talbros Mareli JV (50:50)- design, development and manufacture of suspension systems, twist beam axles, EV cradles, EV battery structural components etc. FY 24 sales @ 260 vs 210 cr YoY. EBITDA @ 36 cr

Talbros Marugo JV ( 50:50 ) – making high quality anti-vibration products and hoses. FY 24 sales @ 123 vs 85 cr YoY. EBITDA @ 9.5 cr

FY 24 outcomes –

Revenues – 790 vs 653 cr
EBITDA – 127 vs 93 cr ( margins @ 16 vs 14 pc )
PAT – 82 vs 55 cr (adjusted for exceptional items)

ROCE @ 21 pc
ROE @ 20 pc
Debt/Equity @ 0.16

Q4 outcomes –

Revenues – 207 vs 176 cr
EBITDA – 35 vs 26 cr ( margins @ 17 vs 15 pc )
PAT – 23 vs 17 cr (adjusted for exceptional items)

In Apr 24, company has bagged an order for supply of Suspension Arms for both ICEs and EVs worth Rs 1000 cr from a leading European OEM ( to be executed over next 8 yrs ). This order will add new customers for the company. Supplies to commence in Q4 FY 25

Total orders received in last 12 months @ 2000 cr to be executed over next 6-8 yrs

Company divested its stake of 40 pc in its JV with Nippon group – namely Nippon Leakless Talbros. Received Rs 65 cr from the divestment

Capacity utilisations in most of the company’s divisions are between 80-90 pc. Company is in the process of capacity expansion in all these divisions. Total capex required across all these divisions is around 130-140 cr. Most of the added capacities should come on stream by Q3 FY 25

Current export sales @ 25 pc of company’s revenues. Likely to grow @ faster rates going forward. Export margins are better than domestic sales margins

Disc: initiated a tracking position, biased, not SEBI registered

As discussed , comparison should be apple apple not otherwise. When I am comparing capex to capex, you are comparing gross fixed capital – a new topic for me.to study and learn.

Valuation is something that market decides. Not you and me. it corrects when necessary. Everybody does his profit booking as per his theory and investment horizon and risk appetite .

Not necessary that we agree with each other

There is an arbitrage of around 33% at Cmp between Inox wind and Iwel. Wondering why would someone buy Inox wind at cmp rather than Iwel. Is it market thinks that merger might not go through Or its a futuristic event and hence not certain which is leading retail, institutions to still buy Inox wind and NOT Iwel