Talbros Auto. (TALBROAUTO)
CyclicalFairStock Score: 47/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹419.5 |
| Market Cap | ₹2,589.5 Cr |
| P/E Ratio | 24.88 |
| ROCE | 19.31% |
| ROE | 14.22% |
| Dividend Yield | 0.18% |
| Profit Growth | 31.46% |
| Debt/Equity | 0.11 |
| Sales Growth | 15.02% |
| Promoter Holding | 58.43% |
| 52-Week Range | ₹219.9 — ₹451.6 |
| Sector | Auto Components |
| Book Value | ₹120.31 |
Strengths
- Very low debt/equity of 0.13, giving balance-sheet strength
- Piotroski F-Score of 7/9 indicates sound financial health
- Promoter holding of 58.43% aligns owner interest
- ROCE of 19.31% and ROE of 14.22% are respectable
- Profit growth of 14.19% is outpacing sales growth of 6.02%
Concerns
- Sales growth is only 6.02%, so this is not a fast grower
- P/E of 16.17, P/B of 3.04, and PEG of 1.60 suggest valuation is not cheap
- Dividend yield of 0.27% provides negligible income support
- Current price is far below the 52-week high of ₹451.60, reflecting cyclicality
AI Analysis
Talbros Auto is an auto-components business, and when I look at it I first ask whether it is a simple, durable enterprise. The balance sheet is conservative—debt/equity is just 0.13—and the Piotroski F-score of 7 out of 9 tells me the financial health is sound. Promoters own 58.43%, so skin in the game is real. Returns on capital and equity, at 19.31% and 14.22%, are acceptable, though they don't scream an extraordinary franchise. The latest quarter shows ₹214 Cr of sales and ₹27 Cr of net profit, so operating margins are decent. Now for the valuation. At ₹281.18, I pay 16.17 times earnings and 3.04 times book value. Book value is ₹92.38. The PEG of 1.60 suggests that the growth on offer is not cheap. Sales growth is only 6.02%, and while profit grew 14.19%, that is a narrower bridge. The dividend yield is 0.27%, so I won't get paid to wait. The 52-week range of ₹219.90 to ₹451.60 reveals a stock that moves with the auto cycle; the current price is far from the high. This is not the kind of company where I can assume a wide moat. Auto components face customer concentration and technological change, and FairStock's mixed score of 37/100 reinforces my caution. This looks like a decent business with low debt and strong promoters, but not a wonderful compounder at this price. I need margin of safety. At 16 times earnings with modest sales growth, I'd rather wait for a lower price or stronger evidence that growth is durable.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer