Shares of Talbros Automotive Components (TACL) hit a new high of Rs 673.55, surging 14% in intraday trade on Monday. Shares of auto parts and equipment makers have rallied 40% in the past month on healthy orders. The S&P BSE Sensex gained 3% over the same period.

TACL was quoted 12% higher at Rs 662 at 10:44 am, while the benchmark index was up 0.50%. The average trading volume over the counter has increased six-fold today, with 650,000 shares changing hands on the NSE and BSE.

TACL is the flagship manufacturing company of the Talbros Group, established in 1956 in partnership with Coopers Payen in the UK to produce automotive and industrial gaskets. Today, Talbros stands proudly in India as the parent brand for Gaskets, Chassis, Rubber Products and Forgings. The Talbros Group’s portfolio also includes the Mercedes-Benz passenger car dealership.

A handful of large clients include 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, GE and QH Talbros, in addition to a strong aftermarket distribution network.

In the past year, TACL has received new multi-year orders of over Rs 1,000 crore from domestic and foreign customers across its business divisions, product divisions and joint ventures (JVs). The orders will be executed over the next 5 years and cover the company’s product line – gaskets, heat shields, forgings and chassis. According to management, these orders will help the company increase its share of existing and new customers in various regions, thereby gaining market share in the coming years.

The company plans to more than double its revenue by FY27 and become a Rs 2,200 crore company at the group level. Over the years, management said the company has increased its focus on exports and will continue to do so. By FY27, the company plans to achieve at least 35% growth through exports. It added that this would also help improve margins, which should increase to 15-16% by FY27.

The automotive sector performed well in FY23, with solid growth in the passenger vehicle segment, which TACL expects to continue in the coming years. Government initiatives to build infrastructure such as roads, highways, and ports drive demand for commercial vehicles. As a very strong company in these two areas, Talbros will continue to outperform, become stronger, and capture more market share in these areas, management said on a Q4FY23 earnings call.