Triton Valves Limited is an ISO 9002, ISO/TS 16949, ISO 14001 certified and possess technical Collaboration with PIGEOT BANDIN SA-FRANCE. The company is India’s largest manufacturers of automotive tyre tube valves, valve cores and accessories. The company was established in 1975 and is based in Bangalore, India. The company designs, manufactures, and sells automotive tire valves, valve cores, and accessories in India. . It offers valves for bicycles, mopeds, motor cycles, scooters, cars and vans, trucks and buses,tractors, industrial vehicles, aircrafts, curing bags, and OTRs; cores, such as standard and large bores; accessories comprising valve caps, bridge and ring washers, rubber washers, rubber bases, bushes, as well as rim, hex, and lock nuts. The company also provides adapters and plugs, including water filling adapters, envelope adapters, and tubeless rim hole plugs; and service tools, including valve core tightener for standard bore double ended type core tightener, tubeless snap-in valve pullers for passenger cars and motor cycles, and tire tread depth gauges. Triton Valves Limited supplies its products to the tire and tube manufacturers. The company also exports its products.
Products include
- VALVES
- CORES
- SERVICE TOOLS
- ADAPTERS & PLUGS
- ACCESSORIES
Why to invest?
1. Auto sector performance is improving and so is Triton valves performance will improve -
The Indian auto component industry is one of the country's rising industries with tremendous growth prospects.
From a low-key supplier providing components exclusively to the domestic market, the industry has emerged as
one of the key auto components centres in Asia and is today seen as a significant player in the global automotive
supply chain. India is now a supplier of a range of high-value and critical automobile components to global auto
makers such as General Motors, Toyota, Ford and Volkswagen, among others.
2. One of the leading provider in India and long growth story -
Here is the list of customers in different segments
- OEM customers - Hyundai, General Motors, Ford, Honda bike, Suzuki, Toyota, Honda, Fiat, Yamaha, Mahindra, Ashok Leyland, Bajaj Auto, Tata Motors, TVS-sricakra, Wheels India.
- Tire customers - Bridgestone, Apollo, CEAT, MRF, Goodyear, Birla Tyres, Dunlop, JK Tyres.
- wheel Customers - Maxion, Wheels India, AMW
- Construction equipment customers - Larsen & Toubro, Case Construction, BEML
- International export customers - Bridgestone-Thailand, Honda,-Indonesia, Orange electronic-Taiwan
In short, they provide products to almost all well-known market leaders
3. Government initiatives -
The Government of India has allowed 100 per cent FDI in the automotive industry through automatic route. With
a special focus on exports of small cars, multi-utility vehicles (MUVs), two and three-wheelers and auto
components, the automotive sector's contribution to the GDP is expected to double reaching a turnover worth
US$ 145 billion in 2016, according to the AMP 2006-2016. Further, govt. reforms will likely to have positive impact on automotive sector which indirectly will stimulate growth of triton valves.
At the current market price of Rs. 990, the stock P/E ratio is at 13x FY15E and 12 x FY16E
respectively.
Earnings per share (EPS) of the company for the earnings for FY16E are seen at Rs. 84.
Net Sales and PAT of the company are expected to grow at a CAGR of 11% and 44% over 2013 to 2016E
respectively. We expect that the company surplus scenario is likely to continue for the next three years, will keep its
growth story in the coming quarters also. We recommend ‘BUY’ for Medium to Long term investment.
nice pick.
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