By Prashant Marathe | EduInvesting.in | 21 May 2025

🚀 At a Glance:

While everyone was refreshing charts of Zomato and Paytm hoping for a dead cat bounce, Banco Products (India) Ltd. quietly went full rocket mode.

• CMP: ₹594
• 📈 Up 15% today, up 60% this month, and no, it’s not an SME pump.

So what the radiator manufacturer from Gujarat just did — is outshine half the startup world.

🛠️ About Banco Products:

• Founded in 1961, Banco is a key auto-ancillary player in thermal management.
• Products: Radiators, intercoolers, gaskets, heat exchangers
• Serves CV, passenger, tractor, railways, genset, defence, industrial segments
• Major exports to Europe, US, and Latin America

Basically, if your machine gets hot — Banco cools it down.

👨‍🔧 Management Snapshot:

• Promoter: Bhupendrasinh Vaghela family (strong Gujarat base)
• Clean, conservative capital allocation — no circus, just silent compounding

💥 Why the Rally?

1. 

Blowout FY25 Q4 Results

• Raw material cost down
• Operating leverage boom
• Global exports rebounded

2. 

Dividend Party

• Declared ₹6/share final dividend
• • Special Dividend = 3% yield at CMP

3. 

Auto Cycle Tailwinds

• CV sales strong
• Tractors stabilizing
• Export orders getting re-routed from China to India

4. 

Undervalued Until Now

• Was trading at single-digit P/E till April!
• Market suddenly woke up from its coma

📊 Financial Snapshot (FY24)

Zero debt. 20%+ margin business. Exports > domestic. And yet, this stock was sleeping for years.

🧮 Forward Fair Value (FV) Calculation

• CMP: ₹594
• TTM EPS: ₹34.7
• Current P/E: ~17.1x

Let’s assume:

• FY26E EPS = ₹42
• Target P/E = 20x (industry average for ancillaries with exports & margins)

🎯 Fair Value = ₹840 → Upside potential: 41% even from here

🧠 EduInvesting Take:

This is the exact type of stock most retail investors miss:

• No buzz
• No influencer coverage
• Doesn’t go on CNBC

But while you were chasing startup stories and smallcap hype trains, this old-school Gujarati radiator stock 3x’d silently.

Don’t chase cool. Chase cooling tech.

Banco didn’t reinvent finance. It just made your diesel engine cooler — and its investors richer.

🔥 Risks:

• Auto slowdown globally
• High base now — future YoY growth will taper
• Forex risks (25%+ revenue is USD-linked)
• Low float = high volatility

😂 Meme Zone:

• You in 2023: “Yeh toh boring ancillary hai.”
• You in 2024: “Kya miss ho gaya yaar, I was holding Nazara.”
• You in 2025: “₹594 ka stock… chalega kya?”

Tags: Banco Products, multibagger stocks 2025, auto ancillary India, radiator stocks, thermal management, value investing India, EduInvesting satire