Banco Products (India) Ltd, with a market cap of ₹7,553 crore, showcases robust financial metrics such as a Debt-to-Equity ratio of 0.33 and an impressive Return on Equity of 26.9%, emphasizing its competitive edge in the auto ancillary sector.
Table of Contents
Overview Of Auto Ancillary Sector
The Auto Ancillary sector in India thrives on a robust automotive market, offering components like radiators, clutches and gaskets. With rapid technological upgrades and exports, the sector is witnessing a steady rise in demand from domestic and international markets.
Expansion in electric vehicle production and government policies supporting manufacturing initiatives are propelling growth. Companies in this sector are increasingly investing in innovation and sustainable solutions to meet evolving industry requirements.
Financial Analysis of Banco Products
| FY 24 | FY 23 | FY 22 | |
| Sales | 2,768 | 2,332 | 1,958 |
| Expenses | 2,346 | 1,968 | 1,686 |
| Operating Profit | 422 | 364 | 272 |
| OPM % | 15 | 16 | 14 |
| Other Income | 38 | 16 | 5 |
| EBITDA | 460.06 | 379.76 | 276.89 |
| Interest | 21 | 13 | 5 |
| Depreciation | 75.99 | 56.35 | 47.87 |
| Profit Before Tax | 363 | 311 | 224 |
| Tax % | 25.17 | 24.21 | 31.88 |
| Net Profit | 271.39 | 235.58 | 152.42 |
| EPS | 37.95 | 32.94 | 21.31 |
| Dividend Payout % | 52.7 | 66.79 | 93.85 |
*Consolidated Figures in Rs. Crores
Banco Products Company Metrics
Banco Products (India) Ltd reported consistent growth in FY 24, showcasing a rise in sales and operating profit, coupled with efficient expense management. Its strong financials emphasize profitability, sound reserves and steady dividend payouts, reflecting a robust position in the auto ancillary sector.
Sales Growth: Sales increased from ₹2,332 crores in FY 23 to ₹2,768 crores in FY 24, marking a growth of 18.7%, driven by higher demand for the company’s products across markets.
Expense Trends: Total expenses rose from ₹1,968 crores in FY 23 to ₹2,346 crores in FY 24, reflecting a controlled increase of 19.2% compared to sales growth.
Operating Profit & Margins: Operating profit reached ₹422.33 crores in FY 24, up from ₹364.08 crores in FY 23. Operating margins were 15.05%, slightly lower than FY 23’s 15.51%.
Profitability Indicators: Net profit grew from ₹235.58 crores in FY 23 to ₹271.39 crores in FY 24, showing a 15.2% increase. EPS rose to ₹37.95 in FY 24 from ₹32.94 in FY 23.
Taxation & Dividend: The effective tax rate was 25.17% in FY 24, slightly up from 24.21% in FY 23. Dividend payout decreased to 52.70% compared to 66.79% in FY 23.
Key Financial Metrics: Equity capital stood at ₹14.30 crores, with reserves increasing to ₹1,037 crores in FY 24 from ₹987.20 crores in FY 23. Total liabilities grew to ₹2,027 crores, reflecting sound asset management.
Banco Products Stock Performance
Banco Products (India) Ltd has shown robust returns, delivering a 65.2% ROI over one year, 83.1% over three years and 57.8% over five years. These figures highlight strong growth and consistent performance for long-term investors.
| Period | Return on Investment (%) |
| 1 Year | 65.2 |
| 3 Years | 83.1 |
| 5 Years | 57.8 |
Banco Products Shareholding Pattern
Banco Products (India) Ltd maintained consistent promoter holdings at 67.88% from Mar-24 to Sep-24, reflecting stability. FIIs held 3.08% in Sep-24, down from 3.21% in June-24. Retail & others accounted for 28.86%, slightly increasing since June 24.
| All values in % | Sep-24 | Jun-24 | Mar-24 |
| Promoters | 67.88 | 67.88 | 67.88 |
| FII | 3.08 | 3.21 | 3 |
| DII | 0.18 | 0.14 | 0.13 |
| Retail & others | 28.86 | 28.77 | 28.97 |
Banco Products Partnerships and acquisitions
Banco Products (India) Ltd has expanded strategically through key partnerships and acquisitions to strengthen its position in the automotive and industrial components sector. Collaborations with global companies and targeted acquisitions have enhanced its technological capabilities and broadened its product portfolio across multiple regions.
Banco Products partners with Nissens A/S, leveraging advanced thermal management technology for automotive applications. This partnership has allowed the company to penetrate international markets with superior product offerings, solidifying its presence in Europe and Asia. Collaboration emphasizes R&D and innovation in heat transfer solutions.
The acquisition of NRF B.V., a Netherlands-based thermal management solutions provider, has significantly enhanced Banco’s global footprint. This strategic acquisition has provided access to advanced manufacturing facilities and a strong European customer base, further diversifying its offerings in heat exchangers and related products for the automotive sector.
Banco Products Peer comparison
Banco Products (India) Ltd demonstrates strong performance in the auto ancillary sector with a market cap of ₹7,553 crore, a low P/E of 22 and a high ROE of 26.86%. Its 1-year return of 65.24% outpaces peers like Sona BLW and Endurance Tech.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % | CP Rs. |
| Samvardh. Mothe. | 157.02 | 110483.91 | 29.17 | 11.8 | 5.54 | 54.02 | 13.68 | 0.51 | 157.02 |
| Bosch | 34089.65 | 100542.79 | 50.2 | 15.97 | 706.59 | 53.53 | 20.61 | 1.1 | 34089.65 |
| Uno Minda | 1,031 | 59,216 | 66 | 18.89 | 16.15 | 49.98 | 19.94 | 0.19 | 1031.35 |
| Sona BLW Precis. | 600 | 37,308 | 65 | 20.91 | 9.54 | -6.85 | 24.02 | 0.51 | 600.35 |
| Exide Inds. | 418.4 | 35564 | 43 | 7.05 | 9.84 | 31.63 | 10.15 | 0.48 | 418.4 |
| Endurance Tech. | 2168 | 30495.71 | 39.64 | 13.64 | 54.69 | 12.15 | 16.6 | 0.39 | 2168 |
| Motherson Wiring | 58.43 | 25,833 | 39 | 42.45 | 1.49 | -5.38 | 47.96 | 1.37 | 58.43 |
| Banco Products | 1,056 | 7,553 | 22 | 26.86 | 48.08 | 65.24 | 26.96 | 0.95 | 1056.1 |
Future of Banco Products
Banco Products envisions strengthening its presence in global markets while maintaining innovation leadership in auto ancillary manufacturing. By leveraging technological advancements and sustainability initiatives, the company aims to cater to evolving automotive trends, including EV adoption and hybrid vehicles.
The company’s strategy includes diversifying its product portfolio and expanding manufacturing capabilities. By targeting new markets and enhancing operational efficiencies, Banco Products is positioned for steady growth, ensuring value for stakeholders.
Banco continues to align with industry shifts and customer demands through robust R&D, enabling it to maintain its position as a leader in the competitive auto ancillary landscape. Sustainability remains a core focus.
How To Invest In Banco Products Share?
To invest in Banco Products Shares, begin by opening a Demat and trading account with a trusted stock broker such as Alice Blue. This account allows you to securely buy and hold shares electronically.
- Research the Stock: Conduct a detailed analysis of Banco Products’s financials, market trends and growth prospects. This will help you make informed decisions and understand the potential risks and rewards before investing.
- Choose a Reliable Stockbroker: Select a trusted stockbroker like Alice Blue, known for its user-friendly platform and competitive brokerage charges. Register with them to gain access to the stock market and trading tools.
- Fund Your Trading Account: Deposit sufficient funds into your trading account to purchase shares. Ensure you maintain an adequate balance for the number of shares you plan to buy, along with additional charges like brokerage fees.
- Place a Buy Order: Search for Banco Products on the stockbroker’s platform. Place a buy order specifying the quantity and price range (market or limit order) to purchase shares when they match your criteria.
- Monitor Your Investment: After acquiring the shares, regularly track the company’s performance and market trends. Stay updated on news or developments affecting Kaynes Technology to make informed decisions about holding or selling.
Banco Products – FAQs
The market capitalization of Banco Products (India) Ltd stands at ₹7,553 crore, reflecting its valuation based on the outstanding shares in the market. This indicates the company’s financial prominence and market performance in the auto ancillary industry.
Banco Products is a key player in the auto ancillary industry, boasting a Return on Equity of 26.9% and a Debt-to-Equity ratio of 0.3However, leadership depends on various factors, including market share, product innovation and global reach.
Banco Products’ acquisitions focus on enhancing its product range and market presence. Notable acquisitions have strengthened its capabilities in radiators and gaskets, helping it address evolving customer demands and secure a competitive edge in the auto ancillary sector.
Banco Products (India) Ltd specializes in manufacturing and supplying high-quality radiators, gaskets and other automotive components. It caters to leading automobile manufacturers, focusing on innovation, efficiency and sustainability to meet industry demands.
Banco Products (India) Ltd is a publicly traded company owned by a diverse group of stakeholders, including institutional investors, retail investors and promoters, contributing to its robust operations and strategic direction in the auto ancillary sector.
The primary shareholders of Banco Products include institutional investors, retail investors and promoters, ensuring a balanced ownership structure. This diversified base supports the company’s strategic growth initiatives and operational stability.
Banco Products (India) Ltd operates in the auto ancillary industry, manufacturing essential components like radiators and gaskets for automotive and industrial applications, reflecting its critical role in the automotive supply chain.
Banco Products experienced notable growth in its order book, driven by robust demand for its innovative auto ancillary components. This expansion underscores its operational excellence and ability to adapt to evolving market needs.
Investors can buy shares of Banco Products via Alice Blue by creating a Demat account and linking it to the platform. Analyze the company’s financials and market trends before initiating trades to align with investment objectives.
Banco Products’ valuation is influenced by its market cap of ₹7,553 crore, a Debt-to-Equity ratio of 0.33 and a Return on Equity of 26.9%. Assessing its financial metrics against peers helps determine its valuation status.
Banco Products aims to strengthen its global presence and expand its product offerings in the auto ancillary sector. With innovation and sustainability at its core, the company is poised for growth, addressing market demands and advancing automotive trends.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
