1. At a Glance – The Shock Absorber That Absorbed the Market
Market Cap: ₹22,344 Cr.
Current Price: ₹553
3-Month Return: 16.2%
Stock P/E: 39.6
ROCE: 57.3%
ROE: 42.6%
Debt to Equity: 0.02
Let’s start with this — ROCE above 57%, ROE above 42%, almost zero debt, negative cash conversion cycle, and a fresh Q3 revenue of ₹1,285 Cr (₹12,853 million). If balance sheets were gym physiques, this one is walking around at 8% body fat.
Q3 FY26 revenue grew 14.2% YoY. EBITDA grew 24.8%. Management is talking about ₹2,200 million annual revenue from one suspension product and ₹1,150 million from a Clean Air contract. And oh yes, a ₹710 million greenfield plant is coming up in Kharkhoda.
Is this just another auto component IPO story riding the SUV wave? Or is this quietly becoming the monopoly-like backend supplier that OEMs can’t ignore?
Let’s open the bonnet.
2. Introduction – The IPO Kid Who Came to Dominate
Incorporated in 2018, but backed by the global muscle of Tenneco Group, this company is not some startup making silencers in a shed.
It supplies catalytic converters, exhaust systems, suspension systems, shock absorbers, engine bearings, and ignition products. Basically, the parts that ensure your car doesn’t shake, choke, or explode.
It raised ₹3,600 Cr via Offer For Sale and got listed in November 2025. Since then, the stock trades at 39.6 P/E — which is not cheap, especially when industry median P/E is 27.
But here’s the twist.
While many auto ancillaries struggle with cyclicality, this one has:
- 57% market share in Clean Air Solutions to Indian CT OEMs
- 52% share in shock absorbers for Indian PV OEMs
- 80% of revenue from top 10 customers
- 12 manufacturing facilities
- Exports to 18–22 countries
And Q3 FY26 wasn’t just decent. It was aggressive.
Revenue ₹12,853 million
EBITDA ₹2,225 million
PAT ₹1,188 million (reported)
Adjusted PAT ₹1,391 million
ROCE above 80% (management commentary)
Tell me — how many auto companies are generating 80%+ ROCE?
Exactly.
3. Business Model – WTF Do They Even Do?
Imagine you’re explaining this to a lazy but intelligent investor.
They make
