In today’s Edition of ‘Jain Sahab ke Gems’ with Zee Business Managing Editor Anil Singhvi, market expert Sandeep Jain recommended a pick for high returns. He chose Talbros Auto. Calling this an excellent pick, he said that this stock was previously recommended by him when it was a Rs 40 cr company. This company has now bifurcated into two companies Talbros Auto Component and Talbros Engineering. 

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Top Stocks to Buy – Talbros Auto: It is a Delhi-based company which is more than six decades old, he said. Talbros Auto manufactures automotive and industrial gaskets. They have also done joint ventures with big companies.

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Talbros Auto stock is currently trading around Rs 192. The quarterly results this time have been very strong with highest ever profits. PAT in December 2019 was Rs 4 cr which was up at Rs 11 cr in December 2020 quarter. The Operating Profit Margins was also one of the highest at over 14 per cent, he said. 

Another important thing that goes in favour of Talbros Auto stock is the investment by Dolly Khanna, who has bought 1.17 per cent stake in the company in December quarter. The valuations of Talbros Auto are quite reasonable and at a PE multiple of 16-17, he said.  

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The auto and auto ancillary sectors are also now coming back on track, which works well for Talbros Auto Stocks, Jain said. 

He said that the investors should make an entry in Talbros Auto stock at current levels. He puts the target price between Rs 230 and Rs 250.