Auto companies are facing some of the headwinds such as semi-conductor shortage etc. but auto ancillary companies are global players and as per brokerages these are probably better bets. So, here we list down all these auto ancillary companies based on market capitalisation:
1. Motherson Sumi:
Locally made, globally preferred. The company is the world's largest manufacturers of components for the automotive and transport industries. The company's operation started way back in 1989 and began manufacturing wiring harness components and plastic parts as a backward integration.
In the 1-year period, the scrip has yielded close to 93% return as against the Sensex which yielded 49% return. Nonetheless, in the last one month it has underperformed.
M-Capitalisation- Rs. 69,616 crore
High RoCE is indicative of high management efficiency at the firm. Plus the firm is efficient in servicing the debt with debt to equity ratio standing at merely just above 1.
Stock's LTP: Rs. 220.15 per share
The company in a major supplier of technology and services in areas including Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. Additionally, Bosch has, in India, the largest development center outside Germany, for end to end engineering and technology solutions.
The scrip of Bosch has underperformed the Sensex with return of 12% during the last year.
Debt to equity ratio at the company is 0.26 times.
M-capitalisation- Rs. 41,069 crore.
LTP: Rs. 13906
3. Sona BLW Precision Forgings:
An innovation-powered, MNC company is focused on design as well as development of advanced electrical powertrain systems for automotive applications. The company made its debut only recently.
M-cap: Rs. 29,167 crore
LTP: Rs. 498.3
4. Endurance Technologies:
Since 1985, the company is into aluminium die-casting, the company's manufacturing units are strategically located near the company's OEMs. The company's focus is put on QCDDM (Quality, Cost, Development, Delivery and Management).
Scrip since the last year, the company has delivered 58.5% return.
The company commands a very low debt to equity ratio of 0.02 times.
M-capitralisation: Rs. 23660 crore
LTP: Rs. 169.85
5. Minda Industries:
The company incorporated in the year 1992 is the flagship company of the Minda Group. The company is into manufacturing of auto electrical parts as well as components that include auto electrical parts such as switches, lightings, batteries etc.
The company in a 1-year time frame has yielded multibagger returns of over 100 percent, outperforming the Sensex.
Other positives of the stock are the high RoCE of 18.66 percent, low debt to equity as well as healthy long term growth, with a rise in net sales by an annual rate of 21.69% and Operating profit at 26.51%
Note while auto companies in India such as the leading Auto giant Maruti is facing semi-conductor and other crisis, and in line has reduced its production target for the ongoing month, brokerages across the board see auto ancillary companies to be better bets given their global positioning and market share.