Wabco India

Wabco India is a market leader with a 85% market share in conventional braking products, advanced braking systems and other related air-assisted products and systems. An auto component company, it posted a set of fantastic numbers for Q1FY16. On a 19% (YoY) rise in net sales at Rs.364 crore, the company posted a net profit of Rs.47 crore, up 52%. EBITDA was up 38% at Rs.69 crore and margins came in healthier at 18.95% v/s 16.39%. Tax out for the quarter showed a 50% jump. On an equity of Rs.9.48 crore, EPS for the quarter was at Rs.25.04 (face value of Rs.5).

The company is debt free. Reserve stands at a healthy Rs.853 crore. Going ahead, for this market leader, success hinges on two aspects – firstly an uptick in auto sector which will automatically boost demand. Secondly, its biggest trigger would be the successful implementation of compulsory ABS (anti-lock braking system), which has been made mandatory in commercial vehicles, starting 1st April 2015. This in itself would give a major spurt in the company’s income in the coming months.