Talbros Automotive close to a new high

Talbros Automotive rose over 12.5% to Rs.232, just Rs.3 short of its 52-week high of Rs.235, with an over 8 times surge in volumes.

The flagship company of the Talbros group is a manufacturer of gaskets, chassis, rubber products and forgings in India. The Group portfolio also includes the Mercedes Benz dealership for passenger cars. The company has technical collaborations with Nippon Leakless Corporation Japan and Sanwa Packaging Japan.

The company has posted a very good set of numbers for Q2FY18. Revenue rose 23% (YoY) to Rs.133 crore. Thanks to the efforts it has taken to localize raw materials and reduce power costs, EBITDA rose 20% to Rs.16 crore and margins rose from 9.6% to 9.9%.

Net profit, before adjusting for exceptional gains was at Rs.7 crore, up 133%. But after adjusting it remained robust at Rs.6 crore, up 48%. There was also a turnaround in its joint ventures and forging business which helped boost the income.