Auto Ancillary Stocks
Auto ancillary companies form the backbone of the automotive supply chain, manufacturing critical components and systems used in vehicles. These include brakes, batteries, tyres, lights, suspensions, engines, and infotainment systems. As vehicle production increases, so does demand for these parts. Investing in auto ancillary stocks offers indirect exposure to the automobile sector with added benefits of diversification across geographies and vehicle categories.
List of Auto Ancillary Stocks
| Company Name | Market Price | Market Cap | 52W Low | 52W High | Prev. Close | 1W Return | 1M Return | 6M Return | 1Y Return | 3Y Return | Dividend Yield | PE Ratio | Industry PE |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
38,150.00 -375.00 (-0.97%)â–¼ | 112518.24 | 25921.6 | 41945 | 38525 | -4.12 % | -3.44 % | 35.90 % | 2.71 % | 140.60 % | 1.34 | 50.76 | 44.96 | |
105.66 +0.28 (+0.27%)â–² | 111518.24 | 71.5 | 144.66 | 105.38 | -3.14 % | 13.66 % | 17.47 % | -25.59 % | 110.77 % | 0.54 | 63.27 | 44.96 | |
388.80 -4.35 (-1.11%)â–¼ | 33048 | 328 | 534.4 | 393.15 | -6.20 % | -2.02 % | 8.27 % | -17.58 % | 151.65 % | 0.51 | 29.57 | 44.96 | |
835.65 +15.60 (+1.90%)â–² | 23163.8 | 405 | 914.35 | 820.05 | -0.32 % | 8.34 % | 81.72 % | 38.59 % | 843.17 % | 0.12 | 68.96 | 44.96 | |
991.20 -20.00 (-1.98%)â–¼ | 20827.92 | 831.15 | 1497.55 | 1011.2 | -4.53 % | 2.13 % | 4.90 % | -29.54 % | 13.05 % | 0.73 | 40.48 | 44.96 | |
977.75 -3.80 (-0.39%)â–¼ | 17895.3 | 832.3 | 1444 | 981.55 | -4.10 % | 0.19 % | -5.98 % | -26.48 % | 101.74 % | 1.07 | 21.41 | 44.96 | |
1,237.70 -16.40 (-1.31%)â–¼ | 17778.81 | 387 | 1331 | 1254.1 | -3.51 % | 10.46 % | 116.42 % | 138.75 % | 730.11 % | 0.38 | 82.29 | 44.96 | |
1,784.00 -72.80 (-3.92%)â–¼ | 12447.31 | 1607.05 | 2975 | 1856.8 | -7.87 % | 0.89 % | 3.43 % | -33.79 % | 93.91 % | 0.95 | 166.87 | 44.96 | |
829.40 +0.25 (+0.03%)â–² | 11863.51 | 297.5 | 875 | 829.15 | -0.74 % | 42.22 % | 140.09 % | 146.86 % | 832.12 % | 1.33 | 41.44 | 44.96 | |
1,131.05 +7.80 (+0.69%)â–² | 7378.49 | 518 | 1179.7 | 1123.25 | 12.58 % | 31.52 % | 97.75 % | 51.02 % | 215.63 % | 0.23 | 47.26 | 44.96 | |
167.04 -3.71 (-2.17%)â–¼ | 4633.64 | 103.76 | 188.5 | 170.75 | -4.14 % | 28.38 % | 26.82 % | -1.41 % | 87.54 % | 0.38 | 65.57 | 44.96 | |
4,863.80 +94.40 (+1.98%)â–² | 4547.65 | 1960 | 4899 | 4769.4 | 11.30 % | 19.58 % | 89.83 % | 84.03 % | 209.35 % | 0.72 | 47.02 | 44.96 | |
1,406.40 +8.80 (+0.63%)â–² | 4485.35 | 1081 | 1465 | 1397.6 | 2.01 % | 8.44 % | 16.22 % | 0.48 % | 106.13 % | 1.42 | 16.5 | 44.96 | |
103.19 +0.62 (+0.60%)â–² | 4117.07 | 68.57 | 123.71 | 102.57 | -4.33 % | 2.45 % | 35.56 % | -14.52 % | -10.03 % | 2.03 | 19.19 | 44.96 | |
229.66 -6.19 (-2.62%)â–¼ | 3609.81 | 167.41 | 280 | 235.85 | -5.88 % | 7.21 % | 22.23 % | 8.29 % | 47.92 % | 0.54 | 16.89 | 44.96 | |
521.55 -27.55 (-5.02%)â–¼ | 2901.38 | 308 | 622 | 549.1 | -5.46 % | 0.04 % | 57.57 % | 15.25 % | 64.92 % | 0 | 17.33 | 44.96 | |
1,746.40 -13.60 (-0.77%)â–¼ | 2638.81 | 1520 | 1982.2 | 1760 | -0.75 % | 1.18 % | 2.76 % | -7.32 % | -7.32 % | 1.75 | 16.77 | 44.96 | |
935.80 -15.75 (-1.66%)â–¼ | 2116.91 | 545.3 | 1010 | 951.55 | -5.45 % | 19.55 % | 51.90 % | 22.06 % | 116.52 % | 1.34 | 24.25 | 44.96 | |
863.50 -7.40 (-0.85%)â–¼ | 2109.79 | 543.6 | 911.95 | 870.9 | 6.97 % | 16.66 % | 50.20 % | 11.36 % | 38.17 % | 1.34 | 19.73 | 44.96 | |
296.55 -0.70 (-0.24%)â–¼ | 1830.55 | 200.2 | 352.7 | 297.25 | 1.33 % | 13.77 % | 15.63 % | -11.62 % | 227.61 % | 0.24 | 23.35 | 44.96 | |
1,054.85 -13.15 (-1.23%)â–¼ | 1316.45 | 870.1 | 1409.6 | 1068 | -1.48 % | 3.49 % | 9.07 % | -20.36 % | 42.12 % | 2.86 | 15.3 | 44.96 | |
1,111.20 +128.80 (+13.11%)â–² | 1309.89 | 658.05 | 1174 | 982.4 | 22.37 % | 23.49 % | 48.09 % | 0.00 % | 0.00 % | 0 | 47.11 | 44.96 | |
93.26 -3.77 (-3.89%)â–¼ | 1261.81 | 54 | 116.87 | 97.03 | -10.70 % | 5.81 % | 52.94 % | -17.48 % | 76.13 % | 0.54 | 50.17 | 44.96 | |
175.27 -2.59 (-1.46%)â–¼ | 1100.7 | 69.84 | 186 | 177.86 | 13.83 % | 31.08 % | 117.92 % | 0.00 % | 0.00 % | 0.63 | 31.36 | 44.96 | |
103.61 -1.94 (-1.84%)â–¼ | 1036.1 | 60.52 | 145.7 | 105.55 | 14.78 % | 14.71 % | 51.15 % | -14.25 % | 103.16 % | 0.96 | 42.01 | 44.96 | |
600.75 +54.75 (+10.03%)â–² | 952.79 | 395.5 | 819.6 | 546 | 20.41 % | 23.65 % | 22.95 % | -21.34 % | 46.52 % | 0 | 62.36 | 44.96 | |
127.80 -2.64 (-2.02%)â–¼ | 716.19 | 86 | 145.9 | 130.44 | -1.34 % | 4.74 % | 34.07 % | -4.08 % | 27.04 % | 1.56 | 32.24 | 44.96 | |
454.10 -18.05 (-3.82%)â–¼ | 670.66 | 401.75 | 647.95 | 472.15 | -3.63 % | -1.41 % | 4.32 % | -19.37 % | 33.58 % | 0.44 | 15.66 | 44.96 | |
137.67 -5.38 (-3.76%)â–¼ | 550.61 | 104.2 | 174 | 143.05 | -1.69 % | 0.15 % | 26.01 % | -19.51 % | 37.81 % | 3.24 | 22.03 | 44.96 | |
121.90 -3.38 (-2.70%)â–¼ | 425.17 | 101.71 | 234.8 | 125.28 | -3.10 % | 4.22 % | 8.20 % | -43.57 % | 154.91 % | 0.25 | 39.45 | 44.96 | |
135.98 -2.70 (-1.95%)â–¼ | 300.65 | 125 | 252.4 | 138.68 | -4.25 % | -0.99 % | 4.70 % | -31.58 % | 5.74 % | 0 | 13.39 | 44.96 | |
751.15 -18.90 (-2.45%)â–¼ | 295.55 | 669.35 | 1440 | 770.05 | -4.49 % | -4.09 % | -3.44 % | -23.57 % | 118.90 % | 0.2 | 94.4 | 44.96 | |
18.53 -0.98 (-5.02%)â–¼ | 247.87 | 9.36 | 21.68 | 19.51 | 5.46 % | 13.61 % | -12.84 % | 60.99 % | 57.03 % | 0 | 0 | 44.96 | |
138.50 +20.48 (+17.35%)â–² | 212.67 | 64.8 | 141.62 | 118.02 | 30.92 % | 51.17 % | 110.71 % | 30.45 % | -0.67 % | 0 | 0 | 44.96 |
What are auto ancillary stocks?
Auto ancillary stocks represent companies that manufacture components, modules, or services used in the assembly of automobiles. These businesses cater to original equipment manufacturers (OEMs), aftermarket services, and exports. Their products range from small mechanical parts to complex electronics and safety systems.
The sector is broad and includes manufacturers of tyres, batteries, engines, transmission parts, lighting systems, seating solutions, and infotainment units. These companies support both domestic vehicle production and global auto supply chains. Many have longstanding contracts with vehicle manufacturers, ensuring stable demand. Given the transition to electric and smart vehicles, the auto ancillary space is also seeing innovation and diversification in product offerings.
Why invest in auto ancillary stocks?
- Indirect auto growth play: Rising vehicle production fuels component demand.
- Export opportunities: Many suppliers serve global auto majors, offering foreign revenue streams.
- Aftermarket sales: Spare parts, replacement, and servicing ensure recurring revenue.
- Product diversity: Exposure to different parts and technologies balances risk.
- EV component demand: Battery management systems, sensors, and EV-specific parts are growth drivers.
- Lower cyclical volatility: Ancillary companies serving multiple manufacturers may be less cyclical than OEMs.
- Contractual stability: Long-term supply contracts ensure steady cash flows.
Advantages of investing in auto ancillary stocks
- Scalable businesses: Component makers can scale output with rising OEM demand.
- **Margins from innovation: **Advanced tech parts and proprietary designs often carry higher margins.
- Diversified client base: Serving multiple OEMs, including foreign clients, reduces dependency risk.
- Aftermarket demand: Components require regular maintenance and replacement, providing steady revenue.
- Cost efficiency: Many companies operate with lean models and benefit from low manufacturing costs.
- EV adaptability: Several ancillary firms are pivoting toward electric drivetrain components.
- Brand independence: Unlike auto manufacturers, component makers are less affected by vehicle brand cycles.
- Consistent exports: Strong demand from developed markets for specific parts sustains growth.
Points to consider before investing in auto ancillary stocks
- OEM dependency: Heavy reliance on a few clients can increase revenue concentration risk.
- Raw material volatility: Steel, rubber, aluminium, and plastic costs affect margins.
- Technological obsolescence: Rapid shifts in automotive technology can make older parts redundant.
- Working capital needs: Component manufacturing involves high inventory and receivables.
- Currency exposure: Export revenues and import of raw materials are affected by forex rates.
- Capex cycles: Expansion and tooling require upfront investment and may stress cash flows.
- Regulatory compliance: Safety and emission standards may necessitate frequent product redesigns.
- Labour and supply chain disruptions: Delays or shortages can halt production and affect deliveries.
- Global automotive trends: Slowdowns in global car production can impact order volumes.
- Client pricing pressure: OEMs often negotiate tight margins, squeezing profitability.
How to invest in auto ancillary stocks
- Open a trading and demat account: Set up your investment account through a registered platform.
- Identify product focus: Determine if the company makes fast-moving or specialised components.
- Check client base: A diversified OEM client list indicates stability.
- Analyse financials: Key metrics include operating margins, working capital cycle, and return on capital when selecting the best auto ancillary stocks to invest in.
- Monitor export trends: Export-oriented companies may perform well during global upcycles.
- Evaluate tech readiness: Preference should be given to companies investing in EV-compatible parts.
- Track sector outlook: Assess overall automotive production forecasts and component demand.
Auto Ancillary Stocks FAQs
Are there risks associated with investing in auto ancillary stocks?
Yes. Even the best auto ancillary stocks include risks like client concentration, raw material price volatility, and demand fluctuations in the automobile sector. In addition, technological shifts may render certain components obsolete unless companies continuously innovate.
How to identify promising auto ancillary stocks?
Focus on companies with high client diversification, strong R&D capabilities, stable cash flows, and scalable operations. Also look for those with a footprint in the EV supply chain or strong aftermarket presence.
How to analyse the financial performance of auto ancillary stocks?
Key metrics include EBITDA margins, return on equity, operating leverage, and revenue split between OEMs and aftermarket. Reviewing raw material cost trends and client dependency is also critical.
How does the auto ancillary sector perform during downturns or recessions?
The sector may see reduced OEM demand, but aftermarket revenues and exports can provide a cushion. Well-diversified players tend to be more resilient than vehicle manufacturers during downcycles.
Is it worth investing in the auto ancillary sector?
Yes, particularly for investors seeking long-term exposure to the automobile industry with less cyclicality. The sector offers innovation-driven growth, stable exports, and growing EV opportunities.
Disclaimer: By referring to any particular sector, Kotak Securities Limited does not provide any promise or assurance of favourable view for a particular industry or sector or business group in any manner. The investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile and take professional advice before investing. Such representations are not indicative of future results. The securities are quoted as an example and not as a recommendation.