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3 Auto Stocks That Delivered Multibagger Returns Up To 921% In 3-Months
Of late the auto industry faced a severe chip crisis, nevertheless with the improvement in supply of chips as well as rebound in vehicle sales the outlook for the sector has improved. And if the auto industry flourishes, auto ancillary will also get its due share. Further alongside gradual resolution of the chip crisis, auto ancillary companies with global exposure are well poised to capitalize on the demand recovery. The bright prospects of the sector going ahead are also reflected from the massive electric vehicle (EV) foray which shall be ruling the markets going ahead.
Also, hinting at the optimistic outlook for the sector- large investors-primarily Mutual funds and FIIs upped their stake in the sector in October.
In fact some of the stocks from the space in the recent past have given multibagger returns and here we list 3 of them which gave multibagger return in last 3 months alone.
Automotive Stampings:
This is a small cap auto ancillaries firm with market cap of Rs. 1325 crore. Part of the Tata Enterprise and subsidiary of Tata Autocomp Systems Limited, the company was initially set up as a Public Limited Company as JBM Tools and later in 2003 it was rechristened to Automotive Stampings and Assemblies Limited (ASAL).
The company is into manufacturing and supplying sheet metal components, welded assemblies and modules for passenger vehicles, commercial vehicles and tractors. Product range includes Body-In-White (BIW) structural panels, Skin panels, Fuel tanks, Rear Twist Beam, Oil sumps & Suspension. The company's application partners are Tata Motors, Ashok Leyland, Fiat etc.
Coming to its scrip, the stock in just a short time has zoomed from two digit price to current levels after hitting back to back upper circuit. The company in the September ended quarter posted a profit of Rs. 0.4 cr. as against losses in the last 3 quarters. Total income from operations also surged to Rs. 147.9 crore.
The company in a filing announced to set up a new facility in Pune. Besides, the company also runs 1 more plant at Pune and the other at Uttarakhand.
In October CRISIL upgraded its rating on the company's long term bank facilities to 'CRISIL BBB/Stable' from 'CRISIL BBB-/Stable' and has reaffirmed its 'CRISIL A3' rating on the short-term bank facility. This is reflective of expectations of improved financial profile in the near term of the company backed by the cash flow on account of monetisation of land as well as improved cash from operations.
JBM Auto:
The auto ancillary firm operates in 3 divisions namely sheet metal, tool room and SPV division. The company's product line includes door panel, floor panels, bonnet, rear bumper, tunnel assembly , axle etc. Other than these the company is also in the business of tools sheet metal, dies etc.
This week JBM Auto announced to acquire 51% stake in JBM Green Energy Systems Private Limited and JBM EV Industries Private Limited via its subsidiary JBM Electric Vehicles Private Limited.
The company has a high promoter holding of 67.54%, For the September ended quarter of Fy22, the company's net profit nearly doubled to Rs. 25.61 crore. Further over the past 3 years the company logged a good profit growth of 18.13%.
Talbros Automotive:
This is again a small cap auto ancillary firm that is into manufacturing of automotive and industrial gaskets. In trade today (January 13, 2022), the stock hit its 52-week high price of Rs. 650.65 apiece on the NSE. The recent gains on the stock are propelled owing to increased shareholding of FIIs who in the December ended quarter upped their stake in the scrip to 0.21% as against 0.02% in the previous quarter. The stock is also held by ace investors including Dolly Khanna and Vijay Kedia.
3 Auto ancillary stocks that delivered up to 921% return in 3 months
| Stock | 52w L/H | LTP as on January 13, 2022 | 3-month return | 1-year return |
|---|---|---|---|---|
| Automotive Stampings | 30.25/925.45 | 835.25 | 921.70% | 2379.00% |
| JBM Auto | 305.5/1643.9 | 1511.65 | 147.50% | 380.00% |
| Talbros Automotive | 164.55/650.65 | 614.85 | 109.00% | 233.00% |
Disclaimer:
The above stocks are not a recommendation to buy into but only are listed given the high returns in the past 3 months alone and is for information only.
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