Kotak Securities is bullish on Talbros Automotive Components has recommended buy rating on the stock with a target price of Rs 389 in its research report dated March 21 2018.
Kotak Securities' research report on Talbros Automotive Components
We recently met with the management of TBA. Company continues to stay on a strong growth trajectory. We expect TBA to benefit from expected healthy automobile demand over FY18-FY20E. Addition of new customers and new orders gives visibility to robust revenue growth in FY19/FY20. Company is also working on new products which is expected to gain acceptance with BSVI implementation. On the EBITDA margin, the company expects to witness improvement through cost reduction, import substitution of raw material, operating leverage and turnaround in one of JV’s. In the forging business, the company recently announced an order of Rs350mn per annum from Dana Spicer India Pvt Ltd. We expect the company to post robust revenue growth across divisions.
Outlook
We expect TBA’s earnings to grow at 30% CAGR over FY17-FY20E. We retain BUY on the stock with an unchanged price target of Rs389.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More