Talbros Automotive Components Upgraded to 'Hold' by MarketsMOJO, Showing Strong Returns and Good Investment Opportunity

Talbros Automotive Components, a smallcap company in the auto ancillary industry, has recently been upgraded to a 'Hold' by MarketsMOJO on October 14, 2024. The stock is currently in a Mildly Bullish range and the technical trend has improved from Sideways on October 14, 2024. One of the key technical factors, MACD, has been Bullish since October 14, 2024.
The company has a Fair valuation with a ROCE of 14.1 and a 3.2 Enterprise value to Capital Employed. It is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 47.55%, while its profits have risen by 36.6%. The PEG ratio of the company is 0.6, indicating a good investment opportunity.

Talbros Automotive Components has consistently delivered strong returns over the last 3 years, outperforming the BSE 500 index. However, its long term growth has been poor with Net Sales growing at an annual rate of 11.35% and Operating profit at 25.21% over the last 5 years.

In the latest quarter, the company's results were flat with a DEBTORS TURNOVER RATIO(HY) at its lowest of 3.70 times and PBT LESS OI(Q) at Rs 21.53 crore, showing a decline of -6.0%.

Despite being a smallcap company, domestic mutual funds hold only 0% of Talbros Automotive Components. This could signify that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth research on companies.