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 Q4FY16. On a 49% (YoY) rise in net sales, the company posted a 90% jump in net profit at Rs.57 crore. Operating profit was up 50% at Rs.66 crore.

The company ended FY16 with a 37% increase in topline at Rs.1740 crore and net profit came in at Rs.205 crore, up 69%.  On an equity of Rs.9.48 crore, EPS for the year was at Rs.108 (face value of Rs.5).

The company is debt free. Reserve stands at a healthy Rs.1045 crore, making it a ripe bonus candidate. Going ahead, for this market leader, success hinges on two aspects – momentum in auto sector which will automatically boost demand. What has also worked in its favor is the implementation of compulsory ABS (anti-lock braking system), which has been made mandatory in commercial vehicles, starting 1st April 2015. This in itself has given major spurt in the company’s income.