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Leading Supplier of
Engine Cooling Products and Sealing Gaskets
Banco Products India Ltd. was incorporated in March
16, 1961 and is a leading manufacturer and supplier of
Original Equipment for commercial vehicles and
passenger vehicles. They supply high quality engine
cooling products and engine sealing gaskets to the
automotive industry. Their products include radiators,
intercoolers, oil coolers and all types of engine
gaskets. They are the largest exporter of radiators to
Europe and have a growing presence in North
America, Middle Eastern/ African and South American
Banco Products is one of the Multibagger stocks
identified by Dynamic Levels Research based on technical and fundamental research.
Banco Products share price has touched a 52 week high of Rs. 241.65 on 06-Sep-2016 and
a 52 week low of Rs. 90.20 on 25-Feb-2016, and is currently trading at Rs.212.

Share Holding
The promoters holding in the company stood at 67.89% & Institutions and NonInstitutions hold 4.49% and 27.61% respectively.

Financial Analysis
Quarterly Results
During the quarter ended 30th June 2016, the total income from operations of Banco
Products reported a growth of 32.07% on Q-o-Q basis and stood at Rs. 385.75 crore
against Rs.292.08 crore for the quarter ended 31st March 2016.
The operating profit of Banco Products for the quarter ended 30th June 2016 stood at
Rs.45.33 crore against Rs.25.07 crore for the quarter ended 31st March 2016, growing by

PAT also grew by 88% and stood at Rs.40.65 crore for the quarter ended 30th June 2016
against Rs. 21.57 crore for the quarter ended 31st March 2016.
EPS grew by 88% and stood at Rs. 5.68 for Q1FY17 against Re.3.02 for the quarter ended
31st March 2016.

Annual Result Analysis:

The net sales of Banco Products for FY16 stood at Rs.1187.87 crore compared to
Rs.1111.55 crore in FY15, marking a growth of 6.87%
The operating profit stood at Rs. 111.66 crore in FY16 against Rs.64.08 crore in FY15,
marking a growth of 74%
PAT stood at Rs. 89.89 crore in FY16 against Rs. 87.65 crore in FY15. PAT for the year
was grew by 2.56%
EPS also grew by 2.53% and stood at Rs. 12.57 for FY16 against Rs.12.26 for FY15

Investment Rationale
Banco has proven reputation of being a reliable partner supplier to develop reliable
and critical cooling solutions for diverse OEM customers.
The company has upgraded its R&D facilities to take on more complex and
challenging projects to develop cooling modules which will enable its clients to
manufacture engines, vehicles which will meet future emission and fuel efficiency
standards so that they stay competitive.
Banco Brand is the most respected Product brand in the aftermarket
Indian Auto Component Industry is expected to grow at a CAGR of 11% through
The company has an impressive list of OEM customers like Yamaha, Bajaj Auto,
Honda, TVS Motors, Maruti Suzuki, Hero Honda, Tata Motors. JCB to name a few.
The companys ability to design and manufacture compact cooling modules for
vehicles meeting BS4 and higher emission standards have helped the company in
acquiring a large share of business from existing customer base as well as from new

The company is focusing on increasing its OEM customer count and product
approvals which will benefit the company when the overall economy will demand
picks up.
At CMP Rs. 212 the Banco Products share price is trading at a P/E of 14.96 and Banco
Products has a market cap of Rs. 1533.36 crore. We recommend a buy on the stock at
CMP with a price target of Rs. 240 for a short term outlook.

The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the
research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment
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Article Written by
Upendra Dudhewewala