TRITON VALVES LTD

(BSE Code: 505978) (CMP: Rs.1798)

COMPANY PROFILE

Incorporated in 1975, Bengaluru based Triton Valves Limited designs,

manufactures, and sells automotive tire tube 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; and accessories comprising valve caps,
bridge and ring washers, rubber washers, rubber bases, and 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 tighteners for standard bore double ended type core
tighteners, tubeless snap-in valve pullers for passenger cars and motor cycles, and
tire tread depth gauges. In addition, it offers AC products, such as automotive A/C
products and HVAC & R products. They are India’s largest manufacturers of
automotive tyre tube valves, valve cores and accessories The company supplies its
products to the tire and tube manufacturers, and the automobile industry clients. It
also exports its products.

PRODUCTS INCLUDE

 VALVES
 CORES
 SERVICE TOOLS
 ADAPTERS & PLUGS
 ACCESSORIES

CLIENTS

 APOLLO TYRES,
 BRIDGESTONE INDIA,
 CEAT TYRES,
 JK TYRES,
 MRF TYRES,
 MAHINDRA & MAHINDRA,
 TATA MOTORS,
 TVS - SRICHAKRA TYRES
 WHEELS INDIA.
 WHY IT CAME TO OUR RADAR
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.
FINANCIAL SNAPSHOT

 It has an equity base of just Rs.0.99crore that is supported by reserves of

around Rs.64.40crore.
 Net Profit of the company rose 127% to 2.96cr in the quater ended
September 2017 as against Rs 1.3cr during the previous quarter, company
has posted higher sales of Rs.58.82 crore fetching an EPS of Rs.30.21
 For Q4FY17, TVL's net profit soared 33.89% to Rs.2.37crore on higher
sales of Rs.44.55crore fetching an EPS of Rs.23.90.

 During FY17, its net profit zoomed 18.79% to Rs.8.28crore on higher sales
of Rs.186.88crore fetching an EPS of Rs.83.68.

 Currently, the stock trades at a P/E of just 21.89 against the industry PE of
31.37. It has paid 150% dividend for FY17.