Major auto players have suggested and confirmed that the chip crisis is a near term issue and will be resolved soon, amid it and the festive season in the counting, the sector that was knocked down owing to coronavirus led lockdown and hence subsequent weak sales, is highly likely to make a good comeback. Nonetheless, few of the players in the run up have managed to give multibagger returns i.e. of over 100 percent in a 1-year's time frame.
Also, in comparison to the auto stocks' there is more bullishness on the auto ancillary stocks.
1. GNA Axles:
GNA Axles Limited is among the leading manufacturers of rear axle shafts used in on-highway and off-highway vehicular segments in India. The company ever since its first production has been expanding its portfolio and is now actively engaged in exports.
In the last one year, the share price of GNA Axles has gained 345 percent to currently quoting at over Rs. 1077 apiece on the NSE. Furthermore, dividend history of the stock is good.
The stock has been on the buy list of Angel Broking for substantial gains.
2. Rajratan Global:
The publicly held company is into manufacture of steel wires. The group draws its revenues from selling tyre bead wire as well as other ancillary products. Also its operation scale even beyond India.
The stock of the company has surged over 600 percent to a price of over Rs. 2200 currently from levels of Rs.330, a year ago.
Based out of Coimbatore, the company is an automotive components as well as precision products manufacturing entity.
This is a small cap scrip from the auto ancillary space that in a year's time has also multi-fold return of over 100 percent.
The company as per reports aims to become debt free in a 1-year period despite low demand. In FY21, the company's debt stood at Rs. 247 crore and this has substantially reduced its debt from Rs. 431 crore in Fy 2020. Now ever since the company's new MD has taken over, the company has been on a recovery path.
4. Kinetic Engineering:
It is a Firodia group entity that launched the famous Luna Moped. The company's founder started the industry's most respectable companies in the space including Kinetic Engineering Limited and Kinetic Honda Motor Company (in collaboration with Honda).The company's product portfolio in transmission components like gears, shafts, axles, and more; engine components, including crankshafts, cylinder heads, camshafts, with complete gearbox and engine assemblies for auto and non-auto products.
This is a small cap company with an market cap of Rs. 112.6 crore. The stock in a year's time has surged by 256 percent to now scale to Rs. 63.6 per share.
5. Kranti Industries:
The company has capabilities into machining critical components with utmost precision. An OEM-supplier of All type of Critical Machined Components to Indian and Global automobile giants
The company's stock in the last 1-year has surged by 200%.