Talbros Automotive Components Limited (TALBROAUTO) AI Stock Analysis

• Market Cap: ₹15.56B
• Dividend Yield: 0.32%
• Average Volume (3M): 24.44K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.43
• Revenue Growth: 0.74%
• EPS Growth: -17.90%
• Country: IN
• Employees: 742
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 3.74
• Shares Outstanding: 61,728,150
• 10 Day Avg. Volume: 11,108
• 30 Day Avg. Volume: 24,443
• PEG Ratio: -1.16
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 74.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹265.00 ▼(-3.23% Downside)

The score is primarily supported by solid financial performance (healthy margins, low leverage, strong equity base), offset by weaker cash-flow conversion. Technicals are a key drag due to a downtrend below major moving averages and negative MACD, with only partial support from near-oversold RSI. Valuation is neutral with a moderate P/E but limited dividend yield.

Positive Factors

Diverse product mix and OEM partnerships

Talbros' revenue mix spans gaskets, rubber parts and seals across automotive, industrial and aftermarket channels and includes strategic OEM partnerships. This diversification and long-term OEM contracts support stable revenue streams, order visibility and market access over cycles.

High gross margin and stable operating margins

A 33% gross margin and stable EBIT/EBITDA margins indicate durable cost control and pricing power in component manufacturing. Sustained margins provide the company room to invest in R&D, maintain quality standards, and absorb input cost swings while protecting long-term profitability.

Low leverage and strong equity ratio

Very low debt and a high equity ratio give Talbros financial flexibility to fund capex, pursue partnerships, and withstand automotive demand downturns without stressing interest coverage. A conservative capital structure supports long-term resilience and strategic optionality.

Negative Factors

Weak cash conversion of reported earnings

Net income is not fully translating into cash, indicating working capital or collection pressures despite strong FCF growth. Persistently sub‑1 cash conversion can constrain sustainable capex, dividends or debt repayment and requires active liquidity management over months to years.

Declining net margin and easing ROE

A falling net margin and lower ROE suggest margin pressure or rising costs relative to sales and weakening returns on shareholder capital. If structural, these trends can limit internal funding, reduce shareholder returns, and require operational or pricing actions to restore long-term profitability.

Revenue exposure to OEM cyclical demand

Heavy reliance on OEM contracts ties Talbros' sales and utilization to vehicle production cycles and OEM order patterns. Cyclical OEM demand can cause multi-quarter swings in volumes and factory utilization, pressuring margins and capital deployment during industry downturns unless aftermarket growth offsets it.

Talbros Automotive Components Limited Business Overview & Revenue Model

Company Description

Talbros Automotive Components Limited manufactures and sells auto components and parts in India and internationally. It offers cylinder head, multi-layer steel, exhaust manifold, rubber molded, edge molded, secondary, new technology, and hot gaskets, as well as heat shields; and forgings, such as kingpins, gear blanks, housings and yoke shafts, companion flanges, bevel pinions, hubs, king pin assly, tube yokes, connecting rods and caps, and integral connecting rods. The company also provides suspension systems comprising control arms, steering knuckles, front cross members, twist beam rear axles, and wheel group and semi corner module assemblies; and anti-vibration products comprising mufflers and hangers, suspension bushes, strut mounts, engine mounts, and hoses, as well as chassis systems. It offers its products for use in two and three wheelers, passenger and commercial vehicles, and farm equipment, as well as serves OEMs. The company also exports its products. Talbros Automotive Components Limited was incorporated in 1956 and is based in Gurugram, India.

How the Company Makes Money

TALBROAUTO generates revenue primarily through the sale of its automotive components to original equipment manufacturers (OEMs) and the aftermarket. The company has established key revenue streams from its diverse product portfolio, which includes gaskets, seals, and rubber products utilized in a variety of vehicles. Additionally, Talbros has formed strategic partnerships with major automotive manufacturers, allowing it to secure long-term contracts and enhance its market presence. The company's focus on quality assurance, technological advancements, and customer service also contributes to its competitive edge and profitability.

Talbros Automotive Components Limited Financial Statement Overview

Summary

Income statement strength (Score 80) is supported by revenue growth (6.1%) and a solid gross margin (33.06%), though net margin declined to 11.42%. Balance sheet is stable (Score 75) with low leverage (Debt-to-Equity 0.15) and a strong equity ratio (66.55%), but ROE eased to 14.92%. Cash flow is the weaker area (Score 67) given below-1 cash conversion (Operating Cash Flow to Net Income 0.79) and modest FCF to net income (0.22) despite strong FCF growth.

Income Statement

The company has shown strong revenue growth over the years, with a Revenue Growth Rate of 6.1% from 2024 to 2025. The Gross Profit Margin stands at 33.06% in 2025, indicating efficient cost management. Net Profit Margin has moderately declined to 11.42% in 2025 from 14.11% in the previous year, suggesting some pressure on net earnings. The EBIT and EBITDA Margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio improved to 0.15 in 2025, indicating a strong equity position with low leverage. Return on Equity (ROE) decreased to 14.92% in 2025, suggesting a decline in profitability relative to shareholders' equity. The Equity Ratio is robust at 66.55%, demonstrating strong financial stability with a high proportion of assets financed by equity.

Cash Flow

The Free Cash Flow Growth Rate surged by 211.82% from 2024 to 2025, indicating improved cash generation. However, the Operating Cash Flow to Net Income Ratio is below 1, at 0.79 in 2025, suggesting that net income is not fully translating into cash flow. The Free Cash Flow to Net Income Ratio is modest at 0.22, indicating limited free cash flow relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2021	Dec 2021
Income Statement
Total Revenue	8.29B	8.27B	7.79B	6.47B	4.24B	5.42B
Gross Profit	3.72B	2.74B	3.47B	1.20B	1.56B	1.96B
EBITDA	1.61B	1.47B	1.85B	933.38M	825.91M	830.20M
Net Income	960.14M	944.33M	1.10B	555.77M	391.31M	448.86M
Balance Sheet
Total Assets	0.00	9.51B	8.57B	6.56B	5.29B	5.70B
Cash, Cash Equivalents and Short-Term Investments	630.44M	630.44M	23.98M	53.16M	31.56M	21.02M
Total Debt	0.00	938.18M	987.02M	868.92M	1.03B	891.83M
Total Liabilities	-6.33B	3.18B	3.20B	2.88B	2.81B	2.68B
Stockholders Equity	6.33B	6.33B	5.37B	3.68B	2.48B	3.02B
Cash Flow
Free Cash Flow	0.00	207.31M	66.49M	145.23M	426.34M	172.77M
Operating Cash Flow	0.00	745.15M	667.49M	565.85M	661.91M	516.88M
Investing Cash Flow	0.00	-517.03M	-517.57M	-370.48M	-18.93M	-253.46M
Financing Cash Flow	0.00	-103.29M	-179.16M	-163.08M	-652.58M	-270.37M

Talbros Automotive Components Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 273.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TALBROAUTO, the sentiment is Negative. The current price of 273.85 is above the 20-day moving average (MA) of 259.00, above the 50-day MA of 271.50, and below the 200-day MA of 280.53, indicating a bearish trend. The MACD of -8.34 indicates Positive momentum. The RSI at 45.34 is Neutral, neither overbought nor oversold. The STOCH value of 45.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TALBROAUTO.

Talbros Automotive Components Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMPAL	70 Outperform	₹13.34B	15.33	―	2.86%	―	―
TALBROAUTO	65 Neutral	₹15.56B	16.26	―	0.32%	0.74%	-17.90%
MIRZAINT	62 Neutral	₹5.22B	52.83	―	―	-15.05%	-18.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RANEHOLDIN	60 Neutral	₹18.73B	21.56	―	2.97%	54.99%	-66.73%
RML	57 Neutral	₹20.51B	40.46	―	1.07%	54.17%	1117.99%
MUKTAARTS	43 Neutral	₹1.30B	-8.28	―	―	-3.03%	6.44%