Talbros Automotive Components Limited (TALBROAUTO) AI Stock Analysis

• Market Cap: ₹14.84B
• Dividend Yield: 0.32%
• Average Volume (3M): 24.44K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.55
• Revenue Growth: 0.74%
• EPS Growth: -17.90%
• Country: IN
• Employees: 742
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 4.41
• 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: ₹286.00 ▲(4.44% Upside)
• Action: Reiterated Date: 01/20/26
• Date: Action: Reiterated 01/20/26

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

Balance-sheet strength

Very low leverage (D/E 0.15) and a 66.55% equity ratio give Talbros strong financial flexibility. This durable capital structure reduces refinancing and solvency risk during auto cycles, supports supplier/customer qualifications and allows funding of capex or certifications without urgent external financing.

Margin sustainability

A 33.06% gross margin plus stable EBIT/EBITDA margins suggest consistent cost control and pricing on gasket/sealing products. Sustained margins reflect product mix and OEM validations, supporting operating leverage and resiliency of core profitability over the next several quarters.

Diversified OEM + aftermarket revenue

Dual channels — direct OEM/Tier-1 contracts and replacement aftermarket sales — create recurring demand streams. OEM platform approvals make revenue stickier while aftermarket ties growth to vehicle parc, lowering single-channel volatility and supporting predictable mid-term revenues.

Negative Factors

Weak cash conversion

Operating cash flow covers less than reported earnings (OCF/NetIncome 0.79) and FCF is only 22% of net income despite headline FCF growth. Poor conversion signals working-capital or non-cash profit items, constraining organic funding for capex, dividends or debt reduction.

Declining profitability metrics

Net margin erosion to 11.42% and negative EPS growth indicate pressure on bottom-line profitability. Persistent margin or earnings decline can reduce retained earnings, limit reinvestment capacity and weaken return on equity, impairing shareholder value generation over coming quarters.

Exposure to ICE drivetrain market

Concentration on ICE and drivetrain sealing solutions exposes Talbros to structural risks as OEMs transition toward EV platforms. Over the medium term this may shrink addressable demand for some products unless the company adapts product lines or secures new platform qualifications.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2021	Mar 2020
Income Statement
Total Revenue	8.29B	8.27B	7.79B	6.47B	4.24B	3.67B
Gross Profit	3.72B	2.74B	3.47B	1.20B	1.56B	1.37B
EBITDA	1.61B	1.47B	1.85B	933.38M	825.91M	407.50M
Net Income	960.14M	944.33M	1.10B	555.77M	391.31M	122.00M
Balance Sheet
Total Assets	0.00	9.51B	8.57B	6.56B	5.29B	4.80B
Cash, Cash Equivalents and Short-Term Investments	630.44M	630.44M	23.98M	53.16M	31.56M	43.87M
Total Debt	0.00	938.18M	987.02M	868.92M	1.03B	1.54B
Total Liabilities	-6.33B	3.18B	3.20B	2.88B	2.81B	2.82B
Stockholders Equity	6.33B	6.33B	5.37B	3.68B	2.48B	1.98B
Cash Flow
Free Cash Flow	0.00	207.31M	66.49M	145.23M	426.34M	141.22M
Operating Cash Flow	0.00	745.15M	667.49M	565.85M	661.91M	370.06M
Investing Cash Flow	0.00	-517.03M	-517.57M	-370.48M	-18.93M	-145.50M
Financing Cash Flow	0.00	-103.29M	-179.16M	-163.08M	-652.58M	-210.65M

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: Positive

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 270.46, above the 50-day MA of 267.06, and below the 200-day MA of 281.65, indicating a bearish trend. The MACD of -6.34 indicates Positive momentum. The RSI at 33.67 is Neutral, neither overbought nor oversold. The STOCH value of 5.23 is Positive, 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	₹12.77B	18.86	―	2.86%	―	―
TALBROAUTO	65 Neutral	₹14.84B	15.60	―	0.32%	0.74%	-17.90%
MIRZAINT	62 Neutral	₹4.47B	-17.45	―	―	-15.05%	-18.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RANEHOLDIN	60 Neutral	₹17.66B	-9.62	―	2.97%	54.99%	-66.73%
RML	57 Neutral	₹23.01B	18.11	―	1.07%	54.17%	1117.99%
MUKTAARTS	43 Neutral	₹1.18B	-24.35	―	―	-3.03%	6.44%

Talbros Automotive Components Limited Corporate Events

Talbros, JVs Win Over Rs 1,000 Crore in Multi‑Year Auto Component Orders

Talbros Automotive Components Limited and its joint ventures have secured multi-year orders worth over Rs 1,000 crore from leading OEMs across domestic and export markets, to be executed over the next five years with commercialization starting in FY27. The order book spans all major product lines—gaskets and heat shields (~Rs 250 crore), forgings (~Rs 500 crore largely from a new European global component supplier), chassis components (~Rs 90 crore for EV-focused BIW parts), and hoses and anti-vibration parts (~Rs 170 crore in India)—and includes about Rs 700 crore of exports and Rs 100 crore linked to the EV segment, strengthening revenue visibility, improving profitability prospects, and deepening the company’s foothold and market share in the demanding European automotive ecosystem.

Talbros, JVs Win Over Rs 1,000 Crore in Multi-Year Auto Component Orders

Talbros Automotive Components Limited and its joint ventures have secured multi-year orders worth over Rs 1,000 crore from leading OEMs in both domestic and export markets, to be executed over the next five years with commercialization starting in FY27. The order book spans all major product lines, including approximately Rs 250 crore in sealing products such as gaskets and heat shields, around Rs 500 crore in export forgings orders driven in part by a new major European customer, Rs 90 crore in export chassis components orders for EV-focused BIW parts via Marelli Talbros Chassis Systems, and Rs 170 crore in domestic hoses and anti-vibration parts through Talbros Marugo Rubber, bolstering the company’s European presence, revenue visibility and profitability prospects while strengthening its position as a reliable global automotive supplier.