GovernMint

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  • Talbros Automotive Components Ltd – A Hidden Gem or Just Another Ancillary?

    Talbros Automotive Components Ltd – A Hidden Gem or Just Another Ancillary?

    “Boards are the custodians of corporate conscience and long-term value.”
    — Lucy P. Marcus

    Focus On Management

    Board of Directors

    Compliance angle

    Company has held analyst / Investor calls on a quarterly basis since past 5 years without any discrepancies

    Key Financials

    • Management has guided to keep Net debt level below 100cr by FY27

    Cash flow

    Capex Snapshot

    • Guided for total capex of 205cr for next 3-4 years mainly funded by internal accruals,

    *Source for above Financial data is submissions made by company to Stock Exchanges*

    Focus area going forward

    • Increase the share of exports in revenue from 25% to 35% by FY27.
    • Increase in share of EV related components from 2% to 12% by FY27.
    • Double annual revenue to 2200cr by FY27 backed by EV components and Exports.

    Dividend payouts ( Face Value 2)

    Order book snippet

    Promoters skin the game

    Key Takeaways

    • The overall industry growth for Forgings, Gaskets & Heat shields is expected to be 9,8%, 7% & 7.4 percent respectively on a CAGR basis.
    • Company’s focus on these areas is a positive.
    • While overall revenue has almost doubled from FY21 to FY25, company has faced challenges in recent years due to Supply chain issues, Increased expenses and overall Industry competition.
    • As a result of slow growth in revenues & profits the dividend payouts are significantly lower in the recent two financial years.
    • Also, the evolving situation around bankruptcy proceedings of Marelli will need to be looked at closely as it has a JV with Talbros.
    • On the other hand strong order book and recent orders from new clients like Tata motors puts the company on a good note to achieve their guided numbers.
    • Available at a market cap of 1793 crores with a PE of 19.

    While there are challenges considering the entire geo political and tariff situation but, the valuation, debt levels and governance metrics provide the cushion on which one can take a bet on this company.

    PS: Please contact your financial / investment advisor before taking any decision.

    Good corporate governance may not necessarily translate into good investment returns but it surely ensures safety of capital and peace of mind to a decent extent

    Do also drop in your feedback or a company you would like to be researched in this manner by reaching out on

    governmint286@gmail.com

  • Time Technoplast Ltd

    Time Technoplast Ltd

    This post is nothing like your typical research with a target price, it focuses more on the governance & management related information of the company.

    Focus on Management ( Founding team)

    The above three people are part of the founding team of Time Technoplast along with Late Shri Anil Kumar Jain.

    Board of Directors

    Compliance angle

    There are no penalties imposed by SEBI, and Time Technoplast is fully compliant with SEBI regulations.

    There are no major enquiries or penalties imposed by MCA as well on the company.

    Also, there are no records of any Inquiries or complaints either against the Promoters or any members of board.

    Investor Facing points

    The company is holding Analyst/Investor conference calls as per provided guidelines in the law at the end of every quarter.

    The management has also been very realistic with their Guidance/Outlook and has also consistently more or less achieved those over the past years.

    Other Business information

    Company as been earning decent cash flows from its existing legacy business and is continuously using those to fund their Capex, R&D , new business ventures.

    They have also put up a new venture to tap in to recycling of Industrial Plastic (30k-40k Cr value worth market). This, will not only help them contribute to their sustainability goals but also act as a backward integration for raw material to them. All this while they maintain on track to be a Net debt free company by 2027.

    Promoters skin in the game

    Promoters holding seems to be consistent with a slight uptick in recent years.

    Good corporate governance may not necessarily translate into good investment returns but it surely ensures safety of capital and peace of mind to a decent extent

    Do also drop in your feedback or a company you would like to be researched in this manner by reaching out on

    governmint286@gmail.com

  • What is “Corporate governance”

    We all have heard about this term ” Corporate Governance” right? But what does it actually mean? What makes a organization good at governance or bad, let us try and decode it in this blog.

    Corporate governance can be defined as the way an organization is being governed or run. It is a combined term for various aspects like:

    • Compliance with all applicable laws
    • Transparency with stakeholders & shareholders
    • Goodwill of the members of the board
    • History of CEO/Promoter

    Sounds simple right?? Well if it would have been then it wouldn’t have been a major reason for Corporate Frauds in India.

    Why is it that investors fail to identify certain traits at a earlier stage and end up suffering losses? Ignorance of facts, hoping that it would be different this time or stock performance? Well honestly there is no right answer to this.

    But one thing we as investors can definitely do is to research upon the above points in detail before putting in our hard earned money into a company.

    This is where this page might be of some use to anyone wanting to find out about few such decent opportunities out there. So please follow this page.

    Good corporate governance may not necessarily translate into good investment returns but it surely ensures safety of capital and peace of mind to a decent extent

    This Blog is a work of human and no AI was used in it*

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