Talbros Automotive Components Ltd (TALBROAUTO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rico Auto Inds

Frontier Springs

Alicon Cast.

Wheels India

India Nipp.Elec.

Talbros Auto.

NDR Auto Compon.

Rane (Madras)

Divgi Torq

MM Forgings

Precision Camshf

Why is Talbros Automotive Components Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.77 times

Healthy long term growth as Operating profit has grown by an annual rate 50.65%

Flat results in Sep 25

ROCE(HY) Lowest at 17.38%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.98 times

With ROE of 14, it has a Very Attractive valuation with a 2.6 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -12.36%, its profits have risen by 10.2% ; the PEG ratio of the company is 1.8

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.08% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -12.36% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Talbros Auto. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Talbros Auto. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Talbros Auto.

-12.36%

-0.28

43.54%

Sensex

4.67%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.17%

EBIT Growth (5y)

50.65%

EBIT to Interest (avg)

5.95

Debt to EBITDA (avg)

1.05

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.32

Tax Ratio

20.23%

Dividend Payout Ratio

3.93%

Pledged Shares

Institutional Holding

0.75%

ROCE (avg)

13.82%

ROE (avg)

15.08%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.58

EV to EBIT

18.13

EV to EBITDA

13.70

EV to Capital Employed

2.51

EV to Sales

2.16

PEG Ratio

1.80

Dividend Yield

0.25%

ROCE (Latest)

13.83%

ROE (Latest)

14.05%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

OPERATING CF(Y)

Highest at Rs 80.02 Cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.13 times

OPERATING PROFIT TO INTEREST(Q)

Highest at 10.10 times

-4What is not working for the Company

ROCE(HY)

Lowest at 17.38%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.98 times

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Here's what is working for Talbros Auto.

Operating Cash Flow - Annually

Highest at Rs 80.02 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 10.10 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio - Half Yearly

Lowest at 0.13 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Talbros Auto.

Debtors Turnover Ratio- Half Yearly

Lowest at 2.98 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio