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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An exchasutive thread on the name


Disc: invested… no trade in past 6 months

Disappointing Q4… Top Line Dip

Other Key observations:

  • FY23 Book Value INR 103 cr
  • Improving wk capital days
  • CFO of 21 cr vs CFO of 24 cr last yr
  • CFI 6 cr

still cheap … will hv to keenly watch the execution over the next 2 yrs

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Tamboli capital

Some highlights from Annual report

● Capacity increased from 550 tonnes to 600 tonnes, The process of increasing further Capacity is planned this FY.

● Highest number of customer project under pipeline.

Operating working capital cycle improved from 146 days to 98 days.

Good amount of reduction in trade receivables / inventories.


FY 23 - 21 Cr.
FY 22 - 24 Cr.

Mcap - 140 Cr.

● 400+ employees, 40+ Engineers.

● Preferred suppliers to Fortune 500 companies.

● 89% of revenue from abroad

Cash rich company - Almost 25 Cr. Cash/ equivalent

Disc: Invested, biased view. Added recently as well.


Poor numbers YoY…

Although much better than last quater.

AGM notes

Q. Scalability: our net fixed assets has close to become 3x in last few years. However, most of this increase is coming out of intangible items in the balance sheet. Can you tell us more about the intangible item and the capex we have undertaken in past few years?
o 5-10 cr. asset addition each year (plant and machinery) and some land and buildings for new projects
o Acquired certain companies which led to intangible
o Can reach 150 cr. in 3-4 years


  • Increased capacity from 550 to 600 tons
  • 460 tons production in FY23, 500 tons planned in FY24 and 600 tons in FY25 (will cross 100 cr. by doing 600 tons)
  • Installed new robot and conveyor system
  • 2 new robots + 1 refurbished robot: These 3 give leeway to increase production to 650 tons (improves standardization and quality)
  • <10 cr. investment for new facility

Q. Given that we have capabilities in investment casting which seems more niche in nature, why are we not building capabilities in sands casting?

  • Investment casting is a big market globally. Company is not into sand casting. Investment casting is higher value addition and used more in aerospace. Currently company lacks capabilities to deliver aerospace casting, as a result aerospace contributes <1% to Tamboli

Q. We saw strong growth in our domestic customer segment, with domestic customers contributing 10 cr. (vs 3 cr. in FY22). Can you tell more about our domestic business development, who are our large customers in India?

  • 4 major segments in domestic: auto (large part; deemed export, supplied to domestic suppliers who then export complete assemblies), defense (marine, subsea application; small contribution today but it can scale), aerospace (ISRO, few other government bodies), locomotives (Bharat Ratna PSUs)
  • Domestic business will be 16-18% in FY24, in talks with few domestic clients
  • Develop lots of parts for ISRO, their product was used in Chandrayaan III
  • ISRO can become a large client in the future

Q. For a given project, what is a timeline from receiving an order to delivering our products?

  • 1 out 20 enquiries get converted into tooling orders; samples require 15-20 weeks followed by customer approval followed by pilot batch orders and then bulk supplies start: takes 9 month – 1 year for an entire order from design to commercial supplies
  • Generally do 10-20 projects in a year
  • Takes 3-4 years for projects to mature, once the end project matures in terms of volumes, Tamboli benefits from higher casting supplies

Q. Festo has been a large client for the past few years, you have mentioned adding new clients. Can you tell us about client. Something like top 3 or top 5 customer concentration to company’s turnover

  • Top 5 customers contribute >60% of business


  • Slowdown in Europe. Customers are sitting on a lot of stock, expected to turn around by January 2024
  • Looking to diversify into multiple industrial segments
  • 1MW solar plant to be installed
  • Don’t have capabilities for titanium and super alloys
  • In investment casting, beyond 100 kg is not commercially viable. Possible in sands casting
  • 30 products were added in FY22
  • Auto has increased and pneumatic has reduced a bit, but this is just reflection of end market demand
  • Process to change name of company is undergoing
  • Investor presentation done in 6 months
  • Most customer loss is during quotation time, have not seen customer loss due to quality

Disclosure: Not invested (no transactions in last-30 days)



I recently attended AGM of Tamboli Capital and here are my notes though many points @harsh.beria93 has covered but putting this out of the sake of completeness for the remaining points

  • MArgin compression is due to external factors and product mix change
  • We have contributed to Chandrayan 3
  • We have used lean phase to enhance out manufacturing capability
  • Renewal of ISO 14001 and other certificates indicate
  • Future prospects for company like ours which is component manufacturing remains very promising
  • BD efforts have been robust and highest ever new projects in pipeline
  • This BD effort is likely to result in strong growth in near future
  • We announced additional capex for current year
  • Company has just signed agreement for 1 MW solar power plant in our premises
  • next 2 years we will be expected to do 600 tons of casting - it will generate revenue of more than 100 Cr
  • Inventory correction is likely to get over by Jan 24
  • Growth will be broadbased and we will not focus too much on single segment
  • Working on Automotive/Aerospace/Defence/Mass tranit systems and pumps/valves
  • We do not have the capability to do casting of super alloys
  • Replacement cost- difficult to determine as there are intangible factors
  • 460 tons production in FY 23, this year we will do 500 tons and FY 25 we will do 600 tons
  • With 600 tons we can easily cross 110 Cr
  • We receive forecast from customers but it is only valid for one month. they deivate 15-20%
  • Contract manufacturing- we have agreements with customers on various terms
  • 13 new products are beyond sampling - now pilot batches and we are on verge of receiving bulk orders
  • New products are new for customers and hence scale up of these products will happen over next 1-2 years
  • Any porject that comes today will take 3-4 years for realizing it’s full potential
  • Product basket - we are at 15% in domestic and will be same range this year. There is bullishness in domestic
  • Volumes top 2-3 customers - 20-25%
  • ISRO can become big client for us not in terms of tonnage but in value. we are working on many future products
    for ISRO
  • Margins - still able to sustain in tough environment is creditable
  • New facility approvals - some received and some are in process. Total capex of less than 10 Cr
  • Refurbished robotic system already in place - it gives us enough legroom to go upto 650 tons
  • Realization- many factors go into realization
  • Next fixed assets increased due to asset addition of 5-10 Cr. Land and building acquired plus plant and machinery are major components
  • Investment casting is very big market and hence we are focusing on it. Sand casting there are many large players
    already there
  • Domestic customers - Auto/Defence/Aerospace and locomotives. Large part is Automotive which is for exports
    by Indian players for gearbox or injection system.
  • Defense- subsea systems , Aerospace - ISRO and GTRI, Locomotive - certain Bharat Ratna companies
  • Timeline for orders- 1 out of 20 enquiries in tooling orders, Samples 15-20 weeks - then pilot batches 9 months to 12 months is typical order cycle
  • Chandryan-3 we are indirectly part of the development.
  • Process for name change is going on.
  • Corporate presentaitons - we give it 6 monthly basis
  • Haven’t lost any existing customers with significant value.
  • Stepdown subsidiary was acquired by company- through proper process.
  • 3-4 years 150 Cr topline very much doable
  • For higher volume - lower magin are we ok with that- we are trying to get better margins as it is natural for businesses to look for higher margins
  • 10 Cr capex - only marginal capacity addition but it was mainly for modernization of plant and hence important for business continuity
  • Rejection rate varies from segment to segment- Aerospace - may be high while for Automotive it may be low
  • Investment casting - Aerospace is very large part of large companies like PCC while we do not have it as it requires distinct set up and capability. It is expensive to build the same so we may think about acquiring it rather than building it