Subscribe for Tenneco Clean Air India Ltd IPO; Geojit Financial Services

Geojit Financial Services, has come out with its report on Tenneco Clean Air India Ltd. The research firm has recommended to “ Subscribe” the ipo in its research report as on November 12, 2025.

Broker Research

November 12, 2025 / 14:22 IST

IPO

Geojit Financial Services, Tenneco Clean Air India Ltd

Tenneco Clean Air India Ltd. (TCAIL), part of the U.S.-headquartered Tenneco Group, is a global Tier-I automotive component supplier. TCAIL operates two key verticals—Clean Air & Powertrain Solutions (~57.5% of FY25 revenue) and Advanced Ride Technologies (~42.5%). Tenneco is the largest supplier of shock absorbers and struts to Indian passenger vehicle (PV) OEMs with a 52% revenue share and the leading provider of clean air solutions to Indian commercial truck OEMs and Off-Highway (OH) OEMs (ex-Tractors) with a market share of 57% and 68%, respectively. Its customers include M&M, Tata Motors, Ashok Leyland, Maruti Suzuki, Daimler India CV, John Deere, and Toyota Kirloskar Motor. By FY25, the company operated 12 manufacturing plants across 7 states and 1 union territory—7 focused on Clean Air & Powertrain and 5 on Advanced Ride Technology.

Valuation and Outlook

At the upper price band of ₹397, TCAIL is valued at 29x FY25 P/E, which appears reasonable relative to peers. Supported by strong parentage, market leadership in clean-air and ride performance systems, established OEM partnerships, robust financials, and healthy return ratios, the company is well-positioned to capitalize on structural tailwinds in India’s auto sector, including premiumization and tightening emission norms. Hence, we recommend a ‘Subscribe’ rating for the long term.

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