Result Update: Talbros Automotive Ltd - BUY - TP Rs.389 - Kotak

TBA reported strong 3QFY18 results. Revenues in the quarter grew by 30% YoY to Rs1,020mn. EBITDA growth for the quarter was 46% YoY with EBITDA margin expanding by 119bps YoY to 10.9%. PBT grew by 143% YoY and PAT growth for the quarter was 44% YoY. TBA revenue growth prospects is looking strong. Expected strong growth in automobile demand, new products/ technology introduction, new order wins and focus on exports is expected to drive company's revenue growth. TBA reported EBITDA margin improvement in the last two quarters and we expect that trend to continue in FY19/FY20. Operating leverage from expected robust growth in revenues, substitution of imported raw material, foray into high margin products and internal efficiencies are factors expected to support margin expansion. We retain BUY on the stock with unchanged price target of 389.

Shares of TALBROS AUTOMOTIVE COMPONENTS LTD. was last trading in BSE at Rs.299.85 as compared to the previous close of Rs. 306.9. The total number of shares traded during the day was 7089 in over 200 trades.

The stock hit an intraday high of Rs. 313.15 and intraday low of 298.05. The net turnover during the day was Rs. 2152924.

Source : Equity Bulls

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