Tamboli Capital: Its a Casting Company!

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.

2 Likes

Hi Manan, I was searching about the CEO of the company Mr. Vaibhav Tamboli and I found a really disturbing allegation on him & his father Mr. Bipin Tamboli. A women accused both of them for __ . I don’t have any idea if that’s true or not, but this news was covered by The Times of India as well.

I’m a newbie in investing, do we consider this in bad corporate governance?

true. there had been some tussle between the brothers … if you see last qtr before yr end… there was hand change of 450-500k shares…now the farther and son Vaibhav Tamboli own all… the other brother is out …
the case was in high court and nothg substantial came out there…

the above is all my desktop work…

i havent met the promoters… 10 year of dividend history gives me comfort on the books and management…

News covering tussle between the brothers

Tamboli Castings: Care Ratings : one gets more info here.
https://www.careratings.com/upload/CompanyFiles/PR/Tamboli%20Castings%20Limited-02-05-2019.pdf