Tamboli Capital: Its a Casting Company!

Tamboli Capital: owns 100% in Tamboli Castings:

Disc: Invested since 2 qtrs at about INR 80 levels.


On 25thFeb 09 Investment & Precision Castings Ltd informed BSE that the Board of Directors of the Company have determined March 20, 2009 as the Record Date. The swap ratio fixed by the Board is as below:

2 New Equity Shares of Tamboli Capital Ltd for every 1 share of Investment and Precision

This is the link of the announcement made on BSE:


Business: The Global Investment Casting market size in 2021 was $14.09 BN USD.

What is Investment Castings:
Investment casting process produces precise components
with close tolerances
-Large volume batches can be manufactured using this process making it economically viable
-Ensures production of very intricate parts and required metallurgical properties
Hence it is process of preference for design engineers worldwide

Usage ::
Increasing applications in Industrial Machinery
-Growing demand from Aerospace and Defense Industries
-high volume Automotive segment

  • AeroSpace and Defence
  • Food & Medical Industry

Last 5 yrs numbers:

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Sales 55.20 55.83 54.13 52.16 66.90 80
Expenses 40.39 40.96 40.98 44.81 51.34 59
Operating Profit 14.81 14.87 13.15 7.35 15.56 21.00
OPM 27% 27% 24% 14% 23% 26%
Other Income 0.05 -0.01 0.46 1.43 0.64 1
Depreciation 3.35 3.43 3.34 2.97 3.30 4
Interest 0.90 0.88 0.60 0.39 0.20 1
Profit before tax 10.61 10.55 9.67 5.42 12.70 18.00
Tax 3.57 3.56 2.71 1.37 3.32 5
Net profit 7.04 7.00 6.96 4.05 9.38 13

Key clients: Fetso as per credit report. Also some desktop work suggest they do supply to Bosch as a Tier 2.

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.

-The 2 bros have had some feud and court cases in the past.
-The company has been slow to ramp up top line.
-Does small business of silver trading etc less than 3 cr top line… negligible profit…

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.

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.


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?

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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.

A very similar winner of the past 3 years: ( similar not same… castings is one common segment)

PTC Industries on sales of Rs 179 cr PAT of Rs 13 cr M cap Rs 2080 cr. Net Worth 165 cr.

Tamboli sales 80 cr PAT of Rs 13 cr and M cap Rs 100 cr. Net Worth 94 cr.

Few Extracts from Annual Report:

1. Industrywide Break up:

2. Client Location:

3. Outlook:

Currently, production capacity of the Company at its existing facility is almost fully utilized. The Company increases CAPEX every year for debottlenecking, which will continue this year. The process of raising further capacity is also under way for the financial year 2022-23 and 2023-24. This will enable the Company to cater to rising market demands.
Looking forward, the Company anticipates that the rising demand and optimization of internal processes will lead to a increase in business volumes.

  1. Wrk Cap looks improved but there is increase in loans and advances which is for the capex:

5. Investments : INR 34 cr vs INR 28 cr consol PPE:

Disc: invested

Result link: 9156523f-81f9-4e48-9f60-1cca193bdf71.pdf (bseindia.com)

key take away : margins dip… flattish numbers

P&L Read:

  1. Gross margin down 400 bps qoq 200 yoy
  2. Inventory destock helps qoq but still lower yoy
  3. PBT: 4.53 vs 4.07 (qoq) but down from 5.37 yoy
  4. 6month: 8.6 cr PBT vs 9.27 … so a 7% odd dip

Cash Flow Read:

  • Pre wrk Cap CFO is fine…marginal 3-4% dip

  • Trade recv moves up by 3cr

  • CFO adjusted for Loans & Advances is healthy:
    |Loans & Advances|-389|-1912|
    |Adj CFO|1362|736|

CFI : bought 4.84 cr PPE

B/S PPE goes up by 2 cr odd from 28 cr to 30 cr.

Disc: invested

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Is there a plan to reverse merge this company with castings?
Whether standalone company doing any operations?

stand alone does some silver trading & articrafts -bhavnagar is known for its silver…
reverse merger: dont know

PowerPoint Presentation (bseindia.com)

PPT: link above:

  1. Revenue Mix:

  1. High Concentration in EU (Germany mainly): will the power surge help them??

  1. Operating Matrix: 28% margin in FY22: i think steady state should be 22-23% range.

  1. TCL is one of the 2 suppliers: Pg16: This is intersting for a sub 100 cr revenue company.

  1. Pg 17: The Compnay share growth plans: Good to know… nothing to add there…

  2. Pg28: Mgmt highlights the SWOT

Disc: Invested

Continues with Good numbers: few points to track

  • utilisation levels
  • wrkl capital
  • CFI
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