Talbros Engg. (538987)

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Profit growth of 40.26% on sales growth of 21.16% shows strong operating leverage.
• P/E of 13.77 and PEG of 0.45 suggest the market is pricing in slower growth than recent performance.
• ROE of 17.18% and ROCE of 14.51% indicate efficient capital deployment.
• Piotroski F-Score of 7/9 points to sound financial health despite limited disclosure.
• P/B of 2.13 against book value of ₹300.58 is reasonable for a profitable compounder.

Concerns

• Latest quarter net margin is only about 5% (₹7 Cr profit on ₹139 Cr sales), leaving little cushion for cost pressure.
• Dividend yield of 0.37% means returns depend almost entirely on capital appreciation.
• Debt/Equity is not disclosed, so true leverage risk is unknown.
• Auto components is cyclical, and the small ₹325 Cr market cap offers limited downside protection.

AI Analysis

Looking at Talbros Engineering, I first notice a small-cap auto component maker trading at ₹639.60 with a market cap of only ₹325 Cr. At a P/E of 13.77 and P/B of 2.13 against a book value of ₹300.58, this is not an expensive stock if the business can keep compounding. The ROE of 17.18% and ROCE of 14.51% are respectable, and the Piotroski F-score of 7 out of 9 tells me the financial health is above average. Growth is the eye-catching part: sales are up 21.16% and profits have jumped 40.26%. That gives a PEG ratio of roughly 0.45, which suggests the market is not paying enough for this growth if it is sustainable. A dividend yield of just 0.37% reminds me this is a business reinvesting for growth, not an income stock. The latest quarter shows ₹139 Cr of sales but only ₹7 Cr of net profit—a thin margin of about 5%. So the growth is real, but the bottom line can be sensitive to costs and pricing. The 52-week range of ₹538.60 to ₹766.00 tells me the stock is well off its high, but not at a distressed low. I would not call this a wide-moat enterprise; auto components is competitive and dependent on vehicle cycles. However, a P/E below 14, growing profits, and a sound Piotroski score make this an interesting fast-grower candidate. I would want to understand the debt position because the debt/equity is not available. I also need promoter holding and order visibility. This is not a predictable consumer franchise, but at this valuation, it deserves a place on the watchlist.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer