Rs 700 crore order book: Micro-cap company received a purchase order worth Rs 3 crore from a premier German Multi-Brand OEM

Remsons Industries Ltd's subsidiary, Remsons-Uni Autonics Private Limited, has secured a significant international purchase order valued at INR 3.00 Crore from a premier German multi-brand OEM. This contract is for the supply of Exhaust Gas Recirculation (EGR) Sensors over a 36-month period, with supplies scheduled to commence from December 2025. This single order from a global entity represents a notable achievement for the company's subsidiary.

Additionally, the Board of Directors has decided to cancel the acquisition of 26,400 equity shares in Astro Motors Private Limited from its existing promoters due to delays in setting up an assembly line. As a result, the company will now hold a 35.86 per cent stake in Astro, which will be reclassified as an 'Associate' instead of a subsidiary. The remaining investment of 62,500 new equity shares for Rs 10 crore remains a long-term investment.

About the Company

Remsons Industries Limited, established in 1971, is a prominent manufacturer of auto components. Their diverse product portfolio encompasses both mechanical and electronic components, as well as lighting solutions. Mechanically, they produce control cables, gear shifters, winches, pedal boxes, parking brake systems, and jack kits. Their electronics division focuses on sensors, rearview cameras, sound systems, wireless chargers, infotainment systems, and digital clusters. Additionally, Remsons offers a range of lighting solutions, including headlamps, tail lamps, signal lamps, interior lighting, and active spoilers. The company operates five manufacturing plants across India and two in the UK, including the facility acquired as Magal Cables, now known as Remsons Automotive UK Ltd.

Remsons Industries Ltd caters to a wide array of clients in the automotive sector. Domestically, they supply to major original equipment manufacturers (OEMs) such as Maruti Suzuki, Hero MotoCorp, Ashok Leyland, Tata, Mahindra, PSA (Peugeot), and Piaggio. Their reach extends globally, as they also provide components to international OEMs, including Ford Motor Co., Jaguar Land Rover, Daimler, Aston Martin, and Volvo. Furthermore, Remsons serves over 250 dealers in the after-market, demonstrating a comprehensive approach to the automotive supply chain.

The company has a market cap of over Rs 430 crore and its order book stands at Rs 700 crore. The stock gave multibagger returns of over 800 per cent in 5 years. The shares of the company have a PE of 30x, an ROE of 12 per cent and an ROCE of 14 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.