It is a promoter Group Company (Refer Disclosure of Sale) registered in Mauritius. Looks like incorporated in 2018. Can not say about the reasons of incorporation but the Sales of Banco Subsidiaries to other promoter entity looks to be done at fair price. Cost of investments as per the Books for these entities was around 17 Cr (Invested in around 2012) while it will receive around 46 Cr on Sale of the subsidiaries. Moreover those subsidiaries formed 4% of overall revenues so not a significant amount and thus have not got much in deep. They had done lot of unnecessary Diversification in past but looks like correcting those now. They have not diluted equity as well as are generous to pay dividends so nothing wrong i have found about the promoters.
Quite tough to say exact but looks like company focus on this aspect.
Source: AR 17-18 , Page 8
Source: AR , 2017-18 , Page 15
Aluminium Radiators due to its light weight are used for Automobiles while copper Brass are used in Non-Auto Vehicles. I looked in AR 2017-18 for contribution of Aluminium Radiators which is around 80% and that was my interpretation for 80% sales from Auto.
Source: AR 17-18 , Page 23
It is quite tough to say as of now as Banco shares very limited information. Annual Report too is of not much use. But EV looks a little far from here. Management too would be looking towards it.
Below is the Alkraft (Banco’s Competitor) Management view on BS-6 and EVs !
Disc: This looks more of a Value Buy to me than a growth. Current downturn in Auto Sector may affect the performance. Once Auto sector revives , Possibility of PE expansion as well as little growth may provide a 15-20% kind returns for next 3-5 Years. Does not look a great business but certainly looks good at current prices. Invested for a medium term with half yearly monitoring.