5 Stocks to Watch in Auto Ancillary Sector Before You Invest
The automobile industry has seen remarkable growth in the past years due to increased demand, a shift towards electric vehicles, global supply chain disruptions that shifted manufacturing prowess to India, and increased discretionary consumption.
The Automotive Component Manufacturers Association of India (ACMA) says that the turnover in supply to OEMs, aftermarket sales, and exports increased to 33% in FY23 to Rs. 5,59,748 crore.
If you are looking to grab a pie of this industry, today’s article is for you. We will discuss the top auto ancillary stocks.
1) Bharat Gears
Bharat Gears has 50+ years of expertise in manufacturing gears, furnaces, and automotive components. The company is one of the leaders in the world for gears technology and the country’s largest gears manufacturer.
Bharat gears has expanded its market to Europe, USA, Mexico, and Asia.
The product mix includes Differential gears, sub-assemblies covering automotives, transmission gears and shafts, etc. The furnace division of the company also produces continuous gas carburising, sealed quench, etc.
- Bharat Gears Share Price as of February 2023: 115+
- Market Cap: 179.81 Cr
2) Exide Industries
Exide industries in the manufacturing of storage batteries, automotive batteries, and other variants for more than seven decades. The company sells products under the brand name of Exide, SF, and Sonic to all four-wheelers and two-wheelers manufacturers.
Exide also manufactures batteries for industrial sectors like railways, power plants, telecom, and other industrial segments. The company has been recognized as one of the top 50 sustainable companies at the 3rd edition of sustainable world conclave 2023.
- Exide Industries Share Price as of February 2023: 320+
- Market Cap: 27,880.00 Cr
3) Craftsman Automation
Craftsman Automation was founded in 1986 and has become a leader in precision manufacturing in diverse fields. The company has wholly owned subsidiaries by the name Craftsman Europe BV Netherlands, DR Axion India Private Ltd., and a JV with Carl Stahl Craftsman Pvt. Ltd.
Craftsman Automation has various ISO certifications and is also recognized by Export House certificate and Indian Customs.
- Craftsman Automation Share Price as of February 2023: 4000+
- Market cap: 8,692.19 Cr
4) Minda Corporation
Minda Corporation has a diversified portfolio comprising Door systems, Electronic controllers for EVs, Mechanical and electronic security systems, Plastic interiors, and other products with clients across the globe. The company is also involved in the manufacturing of Electronic and Manufacturing Security systems for 2 and 3-wheelers.
Minda Corporation has been recognized as one of the 20 best companies to work for in the past.
- Minda Corporation Share Price as of February 2023: 390+
- Market cap: 9,529.71 Cr
5) Fiem Industries
Fiem Industries is one of the leading manufacturers of Signaling Equipments, Rear View Mirrors, Plastic Parts, Automotive Lighting, and Sheet Metals. The company has a strong presence in automotive manufacturing and has diversified into LED luminaries for indoor and outdoor applications.
Fiem has been outstanding in serving its clients and has received various awards from the clients. The company has received a certificate for superior performance to recover post-fire incident & ensure uninterrupted supplies from Suzuki Motorcycle India Pvt. Ltd.
- Fiem Industries Share Price as of February 2023: 2280+
- Market cap: 3,017.35 cr
Conclusion
This was the list of top auto ancillary stocks that you can consider for diversifying your portfolio in this sector. You can invest in stocks of these companies on the Dhan investment platform and ride the next wave in the automobile industry. However, ensure that your investment is backed by analysis and due diligence.
