Talbros Automotive Components Limited

Consumer Cyclical — Auto Parts · NSE

₹368.00−₹0.20 (−0.05%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of Talbros Automotive Components Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Talbros Automotive Components Limited engages in the manufacturing and sells automotive and industrial components in India.

IndustryAuto Parts

SectorConsumer Cyclical

Employees618

Annual revenue₹821 Cr

How does it make money?

Turns over ₹821 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 618 employees supports ₹1.33 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin21.3%

Net margin12.7%

Revenue / employee₹1.33 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Some evidence

ROCE of 18.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE18.1%

ROE14.0%

Peer median ROE23.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +35% while net margin moved +39% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+35%

Margin effect+39%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.43 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

78/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

70/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

20.3x

3Y Median

21.7x

40 monthly readings · mean 22.4x · range 12.1x–43.3x

Sector Median

45.7x

median of 4 sector peers

🟡Currently trading close to its 3y median of 21.7x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 56% below the peer median of 45.7x.

vs. its own history

Fair

21.7x median over 40 months · -7%

vs. sector peers

Cheap

45.7x median of 4 peers · -56%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

20.3x

P/B

3.06x

EV/EBITDA

13.3x

PEG

0.87

Dividend Yield

0.20%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 17.4% to 21.3% over 3 years.
Cash generation is improving
Free cash flow is up 197% over 3 years.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on capital is falling
ROCE has declined from 20.6% to 18.1% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 67% against revenue growth of 35% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 67% against revenue up 35% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 17.4% to 21.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 56% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹43 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 67% against revenue up 35%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.6% CAGR
Latest reported year was 15.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 19%✓ 21.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹43 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹2,272 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.3x

Fair

Fairly valued against the generic band

P/B Ratio

3.06x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹18.13

Profitable

Profitable on a per-share basis

ROE

14.0%

Moderate

Moderate capital efficiency

ROCE

18.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

15.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

35.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.20%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹43 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹368

Operating Margin

12.8%

Average

Average margins

Net Margin

12.4%

Good

Strong bottom-line conversion

Current Ratio

1.96

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.43

Defensive

Steadier than the market

52W Range Position

56%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

426.1 / 421.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

12.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹607 Cr	₹729 Cr	₹774 Cr	₹821 Cr	+10.6%
EBITDA	₹106 Cr	₹142 Cr	₹162 Cr	₹175 Cr	+18.1%
EBITDA Margin	17.4%	19.4%	21.0%	21.3%	—
PAT (Net Profit)	₹56 Cr	₹110 Cr	₹94 Cr	₹104 Cr	+23.3%
EPS	₹9	₹17.82	₹15.3	₹16.87	+23.3%
ROE	15.1%	20.5%	14.9%	14.0%	—
ROCE	20.6%	27.1%	19.4%	18.1%	—
Total Debt	₹87 Cr	₹99 Cr	₹94 Cr	₹84 Cr	-1.2%
Free Cash Flow	₹15 Cr	₹7 Cr	₹26 Cr	₹43 Cr	+43.8%

🟢 Revenue has grown at 10.6% a year over 3 years.

🟢 EBITDA has grown at 18.1% a year over 3 years.

🟢 EBITDA Margin has risen from 17.4% to 21.3% over 3 years (+3.8 pts).

🟢 PAT (Net Profit) has grown at 23.3% a year over 3 years.

🟢 EPS has grown at 23.3% a year over 3 years.

🔴 ROE has fallen from 15.1% to 14.0% over 3 years (-1.1 pts).

🔴 ROCE has fallen from 20.6% to 18.1% over 3 years (-2.6 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.2% a year).

🟢 Free Cash Flow has grown at 43.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,085 Cr

Total Liabilities

₹342 Cr

Total Debt

₹84 Cr

Cash & Equivalents

₹36 Cr

Operating Cash Flow

₹85 Cr

Capex

-₹41 Cr

Shareholding (proxy)

Institutional Holding

0.4%

Insider Holding

60.9%

Corporate Actions

Dividend Rate

₹0.75

Ex-Dividend Date

11 Sept 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

2 positive1 mixed3 general

Here's Why Talbros Automotive Components (NSE:TALBROAUTO) Has Caught The Eye Of Investors

Simply Wall Street, 23 May

Talbros Automotive Components vs Nifty 50 Return Comparison

Univest, 12 Oct

Talbros Automotive Components Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Talbros Automotive Components consolidated net profit rises 35.23% in the June 2026 quarter

Business Standard, 10 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Talbros Automotive Q1FY27 profit jumps 35%; targets 18-20% growth

scanx.trade, 10 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Talbros Automotive shares gain 2% after bagging ₹1,000-crore multi-year orders

Moneycontrol.com, 06 FebPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟢Business QualityStrong14.6/20

🟢Financial HealthStrong17.8/20

🟢GrowthStrong16.1/20

🟢ProfitabilityStrong9.9/15

🟡ValuationFair9.3/15

🟡RiskModerate5.2/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

This thesis breaks if

✓Revenue growth stays above 8% a year10.6% CAGR
✓EBITDA margin holds above 19%21.3%
✓Free cash flow remains positive₹43 Cr
✓Debt / EBITDA stays below 2x0.5x
✓ROCE stays above 15%18.1%