TACL, smallcap stock: Talbros Automotive shares surged 15% today; here's why

Shares of Talbros Automotive Components Ltd (TACL) surged nearly 15 per cent in Wednesday's trade after the company said its joint venture (JV) secured Rs 475 crore worth of orders. The company said the orders would help further enhance its revenue visibility and improve profitability. These orders from highly specialised auto markets and customers greatly signify the capabilities developed by TACL and its JV companies, it said.

TACL shares climbed 14.51 per cent to hit a high of Rs 342.30 on BSE. The stock is up 15 per cent in 2024 so far against a 10.5 per cent rise in the BSE Sensex and 23 per cent surge in the BSE Consumer Discretionary index. 

The orders are to be executed over the period of next 5 years. These orders include orders from all the company’s product lines like gaskets, heat shields, forging components, chassis and hoses, TACL said.

The orders included Rs 75 crore worth EV segment orders and Rs 145 crore worth exports. The smallcap company received orders worth Rs 345 crore, includes Rs 131 crore of exports, majorly in Europe, from the sealing business for gaskets and heat shield products.

Out of this, Rs 245 crore is for the heat shield segment received from multiple OEM’s. The remaining Rs 100 crore is for the gasket division.

"By increasing exports to Europe, a highly specialized market for auto component manufacturers, the company is boosting its market share in that region. Additionally, increased exports are expected to enhance overall margins," TACL said in a BSE filing.

The company said it received orders worth Rs 35 crore through our JV (Marelli Talbros Chassis Systems) for Chassis components. Orders worth Rs 23 crore have been received from forging business, which includes export worth Rs 14 crore. 

Besides, the company received orders worth Rs 70 crore through its JV (Talbros Marugo Rubber) in the domestic market for products like Hoses and A/V. The commercialisation for these products will start from FY26. This order is received from one of the largest PV OEMs in India, the company said.