For decades, Remsons was just another small-cap parts supplier — a name buried deep in the supply chain, making control cables for two-wheelers.
But 2025 is shaping up to be the year that changes. In May alone, the stock surged 17%, riding on the back of its biggest-ever international order: a ₹300 crore win from Stellantis North America, maker of Jeep and RAM trucks. And while that news got the headlines, the bigger story is what Remsons has been building quietly for the last three years — a new product mix, a global footprint, and a seat at the table in next-gen auto tech.
What’s changed? Almost everything.
Remsons isn’t just making cables anymore. It now supplies winches, sensors, pedal boxes, and infotainment modules to global OEMs. Its components are found in everything from Tata’s Nexon iCNG to the Jeep Wrangler. And more importantly, it’s positioning itself as a modular platform player — with exposure to EVs, connected vehicles, and lightweight tech.
Exports now account for 25% of revenue and grew 41% year-on-year. These aren’t low-value shipments either. The Stellantis order includes complex precision assemblies for hybrid platforms in North America — a signal that global clients are starting to trust Remsons with high-value work. The company has operations in the UK and active client relationships across Europe, Mexico, and Africa.
It’s also making strategic bets on the future.
In April, Remsons acquired 51% of Mumbai-based Astro Motors — giving it a foothold in the EV 3-wheeler market. This is a segment where it already makes critical components like throttle cables, brake systems, and pedal kits. Now, it can integrate those into full vehicles.
Another smart play? Its JV with Swiss firm Aircom to produce tyre mobility kits — lighter alternatives to spare wheels designed for compact cars. These are already in pilot with Indian OEMs and could become standard in high-efficiency models going forward.
Financials are improving, but not without stress
FY24 revenue was flat at ₹312 crore, but net profit rose 59% to ₹13.3 crore, thanks to a better product mix and improved export margins. Operating EBITDA stood at ₹31 crore with a 10% margin. Return on equity hit 17.7%.
But cash flow from operations fell to ₹15 crore, down from ₹28 crore in FY23. Inventory days rose to 101, debtor days to 68 — both driven by stocking and relaxed credit terms for large contracts. The upcoming Stellantis deliveries will put further pressure on working capital, and execution discipline will be critical to avoid liquidity strain.
The good news? Promoters have held steady, even slightly increasing their stake to 66.12% last quarter. FII holding is modest at 3.64%, but the shareholder base has tripled in the last year — reflecting rising interest, especially from retail investors.
Valuation is rich. Expectations are higher.
The stock trades at over 70x trailing earnings — not on current performance, but on future bets. The market is pricing in delivery on the Stellantis order, success in its EV ventures, and margin expansion from better export mix. That’s a lot of assumptions. But it also means Remsen's is no longer flying under the radar.
Final pour: Remsons isn’t chasing volume. It’s chasing relevance.
The Stellantis deal might be its biggest win yet — but what matters more is the pipeline it’s building across sensors, EV kits, mobility modules, and lightweight systems. From cables to connected components, it’s making the leap to become a full-stack auto-tech supplier.
Execution is the risk. But if it delivers, Remsons could quietly scale from a ₹300 crore domestic supplier to a ₹500 crore export-led precision manufacturer.
This isn’t just a smallcap pop. It’s a long play on where the auto supply chain is headed.
