“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
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