Talbros automotive share price locked in the 5% upper circuit limit, reaching 293.30 apiece in today's intraday trade following a significant order announcement.
In an exchange filing today, the company informed investors that it secured a substantial order from a leading European OEM, valued at approximately ₹1,000 crore for a multi-year contract.
The order was won by TACL's joint venture company, Marelli Talbros Chassis Systems Private Limited (MTCS). This order is centered on the supply of suspension arms tailored for both conventional internal combustion engine (ICE) vehicles and new-age electric vehicle (EV) platforms in the EMEA and NAFTA regions, as per the regulatory filing.
This order adds a new customer for the TACL group in Europe, which is a highly specialized market for automotive components. The company anticipates this order to bolster its market share in Europe and create fresh avenues for growth with existing and prospective OEMs in the region.
According to the company, the execution of these orders is slated to span over the next eight years, starting in Q4 FY25.
Meanwhile, the company received orders to the tune of ₹980 crore last year across varied product segments in standalone and JV companies. Amongst these, orders worth ₹475 crore were for supply for the EV segment.
Furthermore, orders worth ₹415 crore were related to exports. Coupled with order wins in FY24, the company anticipates continued momentum in business and profitability.
Multibagger returns
Talbros is a diversified auto component player with a presence across automobile categories in passenger vehicles, commercial vehicles, two-wheelers, three-wheelers, agricultural machinery, off-loaders, and industrial vehicles.
The company boasts a marquee customer comprising prominent names such as Bajaj Auto, Tata Cummins, Volvo Eicher India, Ashok Leyland, Escorts Group, Force Motors, Hero MotoCorp, Honda, Hyundai, John Deere, Mahindra & Mahindra, Maruti Suzuki, Suzuki, TAFE, Daimler India, Tata Motors, Simpsons, Carraro, Dana, Musashi, Spicer, and GE.
Talbros shares have demonstrated exceptional performance, delivering multibagger return of 231% in a year and witnessing a stellar surge of 601% over the past three years. Notably, the stock has consistently generated positive returns in the last four years.
It delivered a 20% return in CY20, followed by significant gains of 172.41% and 45.49% in CY21 and CY22, respectively. Moreover, it concluded CY23 with a massive return of 162%.
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