About the Company
Before investing in Banco Products share price, let’s understand the company profile in detail.
In 1961, the company got established in the business of engine cooling & sealing system for both automotive & industrial applications. Today it is preferred choice of original equipment manufacturers (OEMs) both in India & abroad. It has strong presence in European markets through its subsidiary (NRF) with three manufacturing units and 11 warehouses in USA & Europe.
The product range of Banco is very wide having applications in 4×4 SUV, on highways (trucks& buses), off highway, tractors, agriculture machinery, construction material handling equipment, gensets, motorcycles and compressors. The products of the company is categorized under two segments:
- Engine cooling system.
- Engine sealing system.
Engine cooling system Products
Engine sealing system Products
Application of Banco Products
The Company offers complete cooling package that are used in 4×4 SUV, on highways (trucks& buses), off highway, tractors, agriculture machinery, construction material handling equipment, gensets, motorcycles and compressors. These products are:
- Charge air coolers.
- Transmissions oil coolers.
- Fuel/diesel coolers.
- Hydraulic coolers and many more products.
The company has created its leadership in the business of engine cooling and sealing systems.
Financial Analysis of the Banco Products
- In last 11 years, revenue of the company has increased at a CAGR of 11.54% and expenses has grown at a CAGR of 12.83%. This is the reason behind slow growth of CAGR of just 3.39% in net profit of the company in last 11 years.
- Company’s debt is reducing over the period of 11 years. This is positive for the company as it is on path to zero debt company.
- Banco’s cash flow from operations are increasing a great positive for the company showing strength in its core business. Also company is spending a lot on expansion of fixed assets like machinery that is reflecting in cash from investing activity. You can clearly see that company is repaying its loan which is reflecting in cash from financing activity.
Suggestion on Stock
Company is having strong fundamentals with promising future. It created niche in the segment of engine cooling system. Its sales are increasing year after year. One can accumulate the stock in systematic manner with long term horizon.