List of Auto Ancillary Stocks (2024)

Auto ancillary stocks refer to shares of companies that manufacture and supply automobile components and parts to original equipment manufacturers (OEMs). 

Today's Stock

5 Nov, 2024

symbol Company ticker slug Sector Market Price 52W High 52W Low Market Cap (Cr.) PE Ratio Industry PE PB Ratio Div. Yield (%) ROE (%) 1YReturns 3YReturns 5YReturns Market Cap Label Industry Group Industry Sub Industry percentageChange
AMAR Amara Raja Energy & Mobility Ltd ARE&M /stocks/amara-raja-batteries-AMAR Batteries 1,374.25 1,775.95 622.00 25,152.26 26.92 49.07 3.70 0.72 14.59 118.48 95.48 108.66 Smallcap Capital Goods Electrical Equipment Electrical Components & Equipment -1.18
BOSH Bosch Ltd BOSCHLTD /stocks/bosch-BOSH Auto Parts 35,341.10 39,088.80 19,315.20 104,233.77 41.84 38.61 8.65 1.06 21.61 80.63 98.77 124.25 Largecap Automobiles & Components Auto Components Automotive Parts & Equipment 0.62
ENDU Endurance Technologies Ltd ENDURANCE /stocks/endurance-technologies-cn-ENDU Auto Parts 2,391.50 3,061.30 1,572.35 33,639.52 49.43 38.61 6.76 0.36 14.49 39.08 25.70 115.23 Midcap Automobiles & Components Auto Components Automotive Parts & Equipment 0.71
EXID Exide Industries Ltd EXIDEIND /stocks/exide-industries-EXID Batteries 445.05 620.35 257.75 37,829.25 43.15 49.07 2.93 0.45 7.29 66.22 147.46 137.36 Midcap Automobiles & Components Electrical Equipment Automotive Parts & Equipment -2.28
JBMA JBM Auto Ltd JBMA /stocks/jbm-auto-JBMA Auto Parts 1,590.65 2,428.35 1,178.00 18,808.98 105.17 38.61 15.78 0.09 16.09 31.89 545.29 1,693.29 Smallcap Automobiles & Components Auto Components Automotive Parts & Equipment -1.66
MNDA UNO Minda Ltd UNOMINDA /stocks/minda-industries-MNDA Auto Parts 959.95 1,255.00 577.15 55,116.86 62.61 38.61 10.47 0.21 18.15 65.32 140.50 427.16 Midcap Automobiles & Components Auto Components Automotive Parts & Equipment -2.37
MOSS Samvardhana Motherson International Ltd MOTHERSON /stocks/motherson-sumi-systems-MOSS Auto Parts 185.11 216.99 86.80 130,248.86 47.95 38.61 4.62 0.42 10.33 101.32 20.63 121.03 Largecap Automobiles & Components Auto Components Automotive Parts & Equipment 2.30
MSU Motherson Sumi Wiring India Ltd MSUMI /stocks/motherson-sumi-wiring-india-MSU Cables 65.75 80.00 57.85 29,068.78 45.54 49.07 17.34 1.22 42.45 11.82 48.59 48.59 Smallcap Automobiles & Components Electrical Equipment Automotive Parts & Equipment 4.70
SONAC Sona BLW Precision Forgings Ltd SONACOMS /stocks/sona-blw-precision-forgings-SONAC Auto Parts 688.90 768.65 531.60 42,796.20 82.74 38.61 15.28 0.42 20.32 23.87 3.39 90.73 Midcap Automobiles & Components Auto Components Automotive Parts & Equipment 0.47
WABC ZF Commercial Vehicle Control Systems India Ltd ZFCVINDIA /stocks/wabco-india-WABC Auto Parts 14,620.10 18,250.00 12,975.00 27,730.80 68.23 38.61 9.94 0.12 15.63 -9.04 93.35 138.10 Smallcap Automobiles & Components Auto Components Automotive Parts & Equipment 1.74

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Auto Ancillary Stocks

The auto ancillary industry in India is the third largest in the world, providing the essential parts and components that enable vehicle manufacturing. With the country’s automotive sector poised for growth, especially with the shift toward electric vehicles (EVs), investing in auto ancillary stocks has become increasingly appealing for investors looking for both long-term value and growth. This article will guide you through what auto ancillary stocks are, provide a brief overview of the sector, and highlight some of the best auto ancillary stocks in NSE.

What Are Auto Ancillary Stocks?

Auto ancillary stocks represent companies that manufacture and supply various components and parts essential for the automobile sector production. These companies are critical suppliers to vehicle manufacturers (OEMs) and produce items ranging from engine parts to batteries, electronic systems, and increasingly, components for electric vehicles. These stocks cover a wide range of companies, including large-cap giants and small-cap auto ancillary stocks that may be lesser-known but offer high growth potential.

Overview of the Auto Ancillary Sector

India’s auto ancillary sector is diverse, including companies producing a broad array of components. The sector’s growth is driven by factors like rising vehicle production, government policies supporting manufacturing, and the transition to EVs. 

The Indian automobile component industry experienced a robust performance in FY24, reflecting strong growth and resilience. It demonstrated steady expansion with a turnover of Rs. 6.14 lakh crore (US$ 74.1 billion) and a 9.8% revenue growth from the previous fiscal year. Domestic OEM supplies played a significant role, contributing 54% to the turnover, underscoring the importance of local manufacturing demand. Over the longer term, the industry’s CAGR of 8.63% between FY16 and FY24 signals a consistent upward trajectory driven by expanding domestic and international markets. 

This growth positively impacts the auto ancillary sector, encouraging investments in capacity expansion, technological advancements, and innovations. In recent years, auto ancillary companies listed in NSE (National Stock Exchange) have witnessed growing interest due to their potential for growth, especially in the context of increasing vehicle ownership.

5 Best Auto Ancillary Stocks in India

To help investors identify promising opportunities, here’s a look at five of the best auto ancillary stocks:

  • Samvardhana Motherson International Ltd: A global leader in auto components, Samvardhana Motherson offers products like wiring harnesses, mirrors, and more. Its strong global presence and focus on EV auto ancillary stocks make it a resilient sector player.
  • Bosch Ltd: As one of India’s largest auto component manufacturers, Bosch Ltd is renowned for its innovation and early entry into EV technology. With solid fundamentals, it’s a top pick among auto ancillary stocks for electric vehicles.
  • UNO Minda Ltd: Part of the Minda Group, UNO Minda manufactures lighting, acoustic systems, and alloy wheels, with a growing focus on EV and hybrid components. Its quality and expanding EV portfolio make it one of the best stocks in the auto ancillary sector.
  • Sona BLW Precision Forgings Ltd: Specialising in precision parts, Sona BLW benefits from global EV trends and strong production standards. With a rising revenue share from EV components, it stands out among EV auto ancillary stocks.
  • Exide Industries Ltd: A leader in lead-acid automotive batteries, Exide is also expanding into lithium-ion batteries. This strategic shift positions it well in auto ancillary stocks for electric vehicles, which is ideal for EV-focused investors

How to Invest in Auto Ancillary Stocks

  • Open a Demat/Trading/Stockbroker Account: Start by opening a demat account with a trusted stockbroker to enable online trading and investing in auto ancillary stocks.
  • Conduct Thorough Research: Identify the stocks that align with your investment goals. Use tools like the Tickertape Stocks Screener to refine your search. It’s crucial to keep an eye on the auto ancillary share price trends, as well as the company’s growth metrics, market position, and financial health. The screener offers 200+ built-in filters, allowing you to choose parameters such as market capitalisation, financial performance, growth trends, and more. 
  • Place a ‘Buy’ Order: Once you’ve selected the stocks that meet your criteria, execute a ‘Buy’ order through your trading account to initiate your investment.

Advantages of Auto Ancillary Stocks

  1. Growth Potential: India’s automotive market is expected to grow, leading to increased demand for components and services.
  2. Exposure to EV Market: Many companies are pivoting toward the production of EV components, offering investors a chance to participate in the EV revolution indirectly.
  3. Resilience and Diversification: Unlike OEMs, ancillary companies supply across a broad range of vehicles, including both traditional and electric, making them more resilient to shifts in vehicle type preferences.

Risks Associated with Investing in Auto Ancillary Stocks

  1. Dependency on OEMs: Ancillary companies, including auto ancillary penny stocks, are highly dependent on the success of OEMs. Any downturn in automotive sales can directly impact these stocks.
  2. Commodity Price Volatility: Prices of raw materials like steel and rubber can fluctuate significantly, affecting profit margins.
  3. Regulatory Risks: The industry faces regulatory scrutiny, especially with stringent norms around emissions and safety, which could increase operational costs.

Who Should Invest in Auto Ancillary Stocks?

Auto ancillary sector stocks are ideal for investors seeking long-term growth and willing to take on moderate to high risk. Investors with a strong belief in the growth of India’s automotive sector, especially the EV segment, will find these stocks appealing. However, they may not be suitable for highly risk-averse individuals, given the sector’s cyclical nature.

Things to Consider Before Investing in Auto Ancillary Stocks

  1. Market Position: Ensure the company has a solid market position with a diversified product line.
  2. Financial Health: Look at the company’s financials, including revenue growth, profit margins, and debt levels.
  3. Technological Innovation: Companies investing in R&D for EV components or other emerging technologies are better positioned for future growth.
  4. Auto Ancillary Stocks List: Review the complete list of auto ancillary stocks to assess alternatives and diversification options.

To Wrap Up…

The auto ancillary sector in India holds immense potential, particularly as the nation gears up for a shift toward electric vehicles. By investing in a balanced portfolio of the best auto ancillary stocks, investors can benefit from India’s automotive growth story and the global transition to EVs. However, like any investment, it’s essential to conduct thorough research and consult financial advisors when considering entry into this dynamic sector.

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Frequently Asked Questions About Auto Ancillary Stocks

How to identify the best auto ancillary stocks?

The Tickertape Stocks Screener is an effective tool for finding the best auto ancillary stocks by filtering based on different parameters. Filter for large-cap companies for stability, a revenue growth rate of at least 10% year-on-year for growth potential, and a debt-to-equity ratio below 0.5 to ensure financial stability.

Which is the best auto ancillary company in India?

Bosch Ltd is widely considered among the top choices due to its strong market position, diverse product offerings, and commitment to innovation. Its extensive R&D focus on EV components further strengthens its market appeal.

What is the future of auto ancillary?

The Indian automobile industry is projected to reach a turnover of US$ 300 billion by 2026, growing at a compound annual growth rate (CAGR) of 15% from its current revenue of US$ 74 billion.

Why consider investing in auto ancillary stocks?

With increasing EV adoption, auto ancillary stocks provide unique exposure to the automotive sector’s growth, along with the benefits of diversification through suppliers serving multiple OEMs.

How do auto ancillaries sector stocks perform during economic downturns or recessions?

Auto ancillary stocks often face headwinds during economic downturns due to lower vehicle production and sales. However, companies with a strong aftermarket presence or diversified revenue streams tend to perform better and exhibit resilience.