Tamboli Capital: owns 100% in Tamboli Castings:
Disc: Invested since 2 qtrs. More than 5% of PF at about INR 80 levels.
Key Hypothesis:
- More than 10 years of experience in castings business
- 100% EOU
- Festo the biggest client with 5 years of relationship
- Good margins > 20% + avg ( covid year 14%… Fy22 peak 27%)
- INR 23 cr odd GFA reporting 80 cr sales ( 3x + asset turnover)
- INR 9 cr debt … INR 81 cr Net Worth… Adjusted CFO INR 14 cr… Trading at INR 85 cr Mcap
- INR 34 cr investments done…
- 150 days + working capital cycle…
The company has 10 year + dividend paying track record.
Growth:
Last year 35% vols growth. Tamboli is also investing in new capex. Need to understand more.
Looks inexpensive.
Dont kow:
Potential in other areas of Defense and management ambition and ability to scale up.
Why other small business are in the compaany: Does some silver trading & Travel etc… very small part.
Key Links:
PPT : https://www.bseindia.com/xml-data/corpfiling/AttachHis/9cb4b16d-4725-4b4d-a468-6119f12bbfc1.pdf)
Results: https://www.bseindia.com/xml-data/corpfiling/AttachLive/d5995a1d-a6a5-42e7-ab03-28899955dfe2.pdf
Do share your views.
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