Best Auto Sector Stocks in India 2024 – Auto Ancillary Stocks

The table below shows the Best Auto Sector Stocks in India 2024 – Auto Ancillary Stocks based on the Highest Market Capitalization.

Content:

• What Are Auto Ancillary Stocks?
• Automobile Stocks In India
• Auto Ancillary Stock List
• Best Auto Ancillary Stocks In India
• Top Auto Stocks In India
• Who Should Invest In Automobile Stocks In India?
• How To Invest In The Auto Ancillary Stocks?
• Performance Metrics Of Auto Ancillary Stocks
• Benefits Of Investing In Auto Ancillary Stocks
• Challenges Of Investing In Auto Parts Stocks
• Introduction To Top Auto Stocks In India
  • Maruti Suzuki India Ltd
  • Tata Motors Ltd
  • Mahindra and Mahindra Ltd
  • Bajaj Auto Ltd
  • Bharat Forge Ltd
  • Hero MotoCorp Ltd
  • Ashok Leyland Ltd
  • Apollo Tyres Ltd
  • TVS Motor Company Ltd
  • MRF Ltd
  • Eicher Motors Ltd
• Best Auto Sector Stocks in India – FAQs

What Are Auto Ancillary Stocks?

Auto ancillary stocks represent companies that supply parts and components to automobile manufacturers. These companies produce essential items such as brakes, engines, transmissions, and electronics, which are critical for vehicle production. Investing in auto ancillary stocks allows exposure to the automotive industry’s growth and innovation, providing opportunities for returns as the demand for vehicles and advancements in technology increase.

Automobile Stocks In India

The table below shows the Automobile Stocks In India based on 1 Year Return. 

Also read this blog: Highest Dividend Paying Stocks in India. 

Auto Ancillary Stock List

The table below shows the Auto Ancillary Stock List based on the highest day Volume.

Best Auto Ancillary Stocks In India

The table below shows the Best Auto Ancillary Stocks In India based on the PE Ratio. 

Know What is Volume in the Stock Market. 

Top Auto Stocks In India

The table below shows the Top Auto Stocks In India based on the 6-month return. 

Who Should Invest In Automobile Stocks In India?

Investors with a high-risk tolerance, long-term investment horizon, and interest in capitalizing on India’s growing automotive market should consider automobile stocks. Those who understand industry trends, technological advancements, and economic cycles can benefit from potential growth. It’s ideal for individuals seeking diversification and willing to stay informed about market and regulatory changes impacting the automotive sector.

How To Invest In The Auto Ancillary Stocks?

To invest in auto ancillary stocks, research companies in the sector, analyze their financial health and growth potential, and choose a reliable brokerage platform. Diversify your portfolio to mitigate risks, stay updated on industry trends, and consider consulting a financial advisor to make informed investment decisions.

Performance Metrics Of Auto Ancillary Stocks

Performance metrics of auto ancillary stocks are vital for investors to gauge the financial health and future growth potential of companies in this sector. These metrics provide a comprehensive overview of a company’s performance and help investors make informed decisions.

1. Revenue Growth: A consistent increase in revenue indicates the company’s ability to expand its market share and improve its product offerings.

2. Profit Margins: High-profit margins reflect efficient cost management and pricing power within the industry.

3. Return on Equity (ROE): A strong ROE signifies the company’s ability to generate profits from shareholders’ equity, highlighting effective management and robust financial health.

4. Debt-to-Equity Ratio: This ratio helps assess financial leverage and risk; a lower ratio suggests a healthier balance sheet and lower financial risk.

5. Earnings Per Share (EPS) Growth: An upward trend in EPS indicates profitability growth and potential for future dividend payouts.

6. Cash Flow from Operations: Strong cash flow from operations shows the company’s capability to generate cash to fund its operations, pay down debt, and support growth initiatives.

Benefits Of Investing In Auto Ancillary Stocks

Benefits Of Investing In Auto Ancillary Stocks offer significant advantages as these companies play a crucial role in the automotive supply chain, ensuring continuous demand for their products and services, leading to potential growth and profitability for investors.

1. Diversification: Auto ancillary stocks provide diversification benefits, spreading risk across different segments of the automotive industry.

2. Innovation: These companies often lead in innovation, contributing to advancements in automotive technology and sustainability.

3. Global Reach: Many auto ancillary companies have a strong global presence, tapping into international markets and expanding their revenue base.

4. Economic Growth: The auto ancillary sector benefits from economic growth, as increased vehicle production and sales drive demand for their products.

5. Aftermarket Sales: Apart from supplying to original equipment manufacturers (OEMs), auto ancillary companies have significant revenue streams from aftermarket sales, including spare parts and accessories.

Challenges Of Investing In Auto Parts Stocks

The challenges of investing in auto parts stocks involve several risks and complexities. For example, the cyclical nature of the automotive industry significantly impacts the performance of auto parts companies, causing fluctuations in demand and profitability.

1. Market Volatility: The auto parts industry is highly susceptible to market volatility due to changes in consumer preferences, economic conditions, and technological advancements.

2. Supply Chain Disruptions: Auto parts manufacturers often face supply chain disruptions, which can affect production schedules and lead to financial instability.

3. Regulatory Changes: Frequent changes in regulations related to emissions, safety, and environmental standards can increase compliance costs and affect profitability.

4. Competition: Intense competition in the auto parts market puts pressure on profit margins, making it challenging for companies to maintain market share and profitability.

5. Technological Advancements: Rapid technological changes in the automotive industry require significant investment in research and development, which can strain financial resources.

6. Dependence on OEMs: Auto parts companies are heavily dependent on Original Equipment Manufacturers (OEMs) for business, making them vulnerable to OEMs’ production schedules and financial health.

Introduction To Top Auto Stocks In India

Best Auto Sector Stocks in India 2024 – Highest Market Capitalization

Maruti Suzuki India Ltd

The Market Cap of Maruti Suzuki India Ltd is Rs. 408737.49 crore. The stock’s monthly return is 1.31%. Its one-year return is 34.75%. The stock is 1.78% away from its 52-week high.

Maruti Suzuki India Limited is involved in the manufacturing, purchasing, and selling of motor vehicles, components, and spare parts. The company focuses on producing and selling both passenger and commercial vehicles. It also offers aftermarket parts and accessories under the brand names Maruti Suzuki Genuine Parts and Maruti Suzuki Genuine Accessories. 

In addition, the company facilitates the sale of pre-owned cars, provides fleet management services, and offers car financing. Maruti Suzuki’s vehicles are sold through three channels: NEXA, Arena, and Commercial. NEXA products include Baleno, Ignis, S-Cross, Jimny, and Ciaz, while Arena products include Vitara Brezza, Ertiga, Wagon-R, Dzire, Alto, Celerio, CelerioX, S-Presso, Eeco, and Swift. Commercial products include Super Carry and Eeco Cargo.

Tata Motors Ltd

The Market Cap of Tata Motors Ltd is Rs. 151860.11 crores. The stock’s monthly return is 3.22%. Its one-year return is 108.08%. The stock is 6.62% away from its 52-week high.

Tata Motors Limited is a multinational automotive manufacturing company with a wide range of products, including cars, SUVs, trucks, buses, and defense vehicles. The company operates in different segments, such as automotive operations and other activities. Within its automotive segment, Tata Motors is divided into four key sub-segments: Tata Commercial Vehicles, Tata Passenger Vehicles, Jaguar Land Rover, and Vehicle Financing.

Additionally, the company is involved in other operations like IT services, machine tools, and factory automation solutions. Tata Motors DVR shares are a unique form of shares with differential voting rights compared to ordinary shares, first introduced by the company in 2008 and traded on stock exchanges.

Mahindra and Mahindra Ltd

The Market Cap of Mahindra and Mahindra Ltd is Rs. 309,045.91 crore. The stock’s monthly return is 30.59%. Its one-year return is 112.43%. The stock is 0.59% away from its 52-week high.

Mahindra and Mahindra Limited is an Indian company that provides a variety of products and services including farm equipment, utility vehicles, information technology, and financial services. The company is divided into segments such as Automotive, Farm Equipment, Financial Services, Industrial Businesses, and Consumer Services. 

The Automotive segment includes the sale of automobiles, spare parts, mobility solutions, construction equipment, and related services, while the Farm Equipment segment focuses on tractors, implements, spare parts, and related services. Mahindra and Mahindra offer a wide range of products from SUVs, pickups, and commercial vehicles to electric vehicles, two-wheelers, and construction equipment.  

Automobile Stocks In India – 1-Year Return

Bajaj Auto Ltd

The Market Cap of Bajaj Auto Ltd is Rs. 249,815.63 crores. The stock’s monthly return is 11.37%. Its one-year return is 110.60%. The stock is 0.33% away from its 52-week high.

Bajaj Auto Limited, an India-based company, specializes in the manufacturing of two-wheelers, three-wheelers, and quadricycles. The company is involved in the development, production, and distribution of various automobiles, including motorcycles, commercial vehicles, electric two-wheelers, and components. It operates in segments such as Automotive, Investments, and Others. 

The motorcycle lineup comprises models such as Boxer, CT, Platina, Discover, Pulsar, Avenger, KTM, Dominar, Husqvarna, and Chetak. The commercial vehicle range includes Passenger Carriers, Good Carriers, and Quadricycles. Geographically, the company operates in India and other regions worldwide. Its manufacturing plants are located at Waluj, Chakan, and Pantnagar.  

Bharat Forge Ltd

The Market Cap of Bharat Forge Ltd is Rs. 73,260.37 crore. The stock’s monthly return is 15.94%. Its one-year return is 107.40%. The stock is 1.29% away from its 52-week high.

Bharat Forge Limited, an Indian company, specializes in providing safety-critical components and solutions globally to a range of industries such as automotive, railways, defense, construction, mining, aerospace, marine, and oil and gas. The company operates in segments including Forgings and Others, manufacturing, assembling, and selling a variety of forged and machined components, including aluminum castings for the automotive and industrial sectors. 

Additionally, Bharat Forge Limited is involved in the production and assembly of components related to electric vehicles. Their automotive range includes engine parts like crankshafts, connecting rods, fuel injection systems, chassis components such as front axle beams and steering knuckles, and transmission and driveline items.  

Hero MotoCorp Ltd

The Market Cap of Hero MotoCorp Ltd is Rs. 102,330.74 crore. The stock’s monthly return is 18.39%. Its one-year return is 97.99%. The stock is 1.04% away from its 52-week high.

Hero MotoCorp Limited is involved in the development, production, marketing, sales, and distribution of two-wheelers and related components. The company’s range of products includes motorcycles, scooters, and parts. Among its motorcycle offerings are models such as XTREME 200S, XTREME 160R BS6, XPULSE 200T, and more. 

Scooter options include Destini 125 XTEC, Maestro Edge 110, and Pleasure+ XTEC. Additionally, the company offers a variety of accessories like helmets, seat covers, and tank pads. Hero MotoCorp operates eight manufacturing facilities, with six located in India and one in Colombia and Bangladesh each. Subsidiaries of the company include HMCL Americas Inc. USA, HMCL Netherlands B.V., and HMC MM Auto Limited.

Auto Ancillary Stock List – Highest Day Volume

Ashok Leyland Ltd

The Market Cap of Ashok Leyland Ltd is Rs. 61,868.42 crores. The stock’s monthly return is 17.83%. Its one-year return is 53.40%. The stock is 1.19% away from its 52-week high.

Ashok Leyland Limited is an Indian company involved in automobile manufacturing. The company’s core operations include manufacturing and selling various commercial vehicles, providing vehicle and housing finance, offering IT services, and producing engines for industrial and marine purposes, as well as forging and castings. The company is divided into segments such as Commercial Vehicles and Financial Services. Its truck lineup comprises haulage, ICV, tippers, and tractors, while its bus range includes city, intercity, school, college, staff, stage carrier, and tourist buses. 

Additionally, the company offers light commercial vehicles, small commercial vehicles, goods carriers, and passenger vehicles. Ashok Leyland also provides power solutions like agricultural engines, diesel generators, industrial engines, marine engines, and gas gensets.  

Apollo Tyres Ltd

The market capitalization of Apollo Tyres Ltd is Rs. 30,589.64 crore. The stock’s monthly return is 0.19%. Its one-year return is 16.72%. The stock is 17.10% away from its 52-week high.

Apollo Tyres Limited is involved in the production and distribution of automotive tires across various segments such as automobile tubes and automobile flaps. The company operates in geographical segments including Asia Pacific, Middle East, and Africa (APMEA), Europe, and others. It serves distinct consumer groups through its brands Apollo and Vredestein. 

The Apollo brand offers a wide range of tires for commercial, passenger vehicles, two-wheelers, farm, and industrial use. The Vredestein brand provides products like car tires, tires for agricultural and industrial machinery, and bicycle tires. The company’s product portfolio covers passenger cars, SUVs, MUVs, light trucks, truck-bus, two-wheelers, agriculture, industrial, specialty, bicycle, and off-the-road tires, as well as retreading materials.  

TVS Motor Company Ltd

The Market Cap of TVS Motor Company Ltd is Rs. 106,348.25 crore. The stock’s monthly return is 17.94%. Its one-year return is 86.04%. The stock is 0.61% away from its 52-week high.

TVS Motor Company Limited manufactures motorcycles, scooters, mopeds, three-wheelers, parts, and accessories. The company’s motorcycle lineup features models such as Apache Series RTR, Apache RR 310, Apache RTR 165RP, TVS Raider, TVS Radeon, TVS StaR City +, and TVS Sport. 

Customers can access the TVS Augmented Reality Interactive Vehicle Experience (ARIVE) mobile application to explore detailed information about the TVS Apache series motorcycles, book test rides, and make purchases.  

Best Auto Ancillary Stocks In India – PE Ratio

MRF Ltd

The Market Cap of MRF Ltd is Rs. 55,575.75 crores. The stock’s monthly return is -1.82%. Its one-year return is 25.44%. The stock is 20.60% away from its 52-week high.

MRF Limited, a holding company based in India, specializes in the manufacturing and sales of tires, tubes, flaps, tread rubber, and dealing in rubber and rubber chemicals. The company’s tire products feature various sizes such as 225/55R16 PERFINZA CLX1 – TL, 225/45R17 PERFINZA CLX1 – TL, 205/60R16 PERFINZA CLX1 – TL, and others. 

In addition, the company’s international operations cover a wide range of tire categories including heavy-duty truck/bus tires, light trucks, passenger cars, motorsports, and more. The company’s sports goods comprise the Virat Kohli range, English Willow range, Kashmir Willow range, and protective gear. MRF Limited’s wholly-owned subsidiaries include MRF Corp Ltd., MRF Lanka Pvt. Ltd., and MRF SG PTE LTD.

Eicher Motors Ltd

The Market Cap of Eicher Motors Ltd is Rs. 133650.87 crore. The stock’s monthly return is 2.29%. Its one-year return is 38.16%. The stock is 0.20% away from its 52-week high.

Eicher Motors Limited is an automotive company based in India. The company manufactures and sells motorcycles, spare parts, and offers related services within the automotive segment. Its flagship brand, Royal Enfield, is known for its motorcycle products such as Interceptor 650, Continental GT 650, Classic, Bullet, and Himalayan. Royal Enfield also provides apparel and motorcycle accessories, including protective riding gear, accessories, seats, bodywork, controls, wheels, luggage, and engines. 

In the commercial vehicle sector, Eicher Motors operates through its subsidiary, VE Commercial Vehicles, in a joint venture with AB Volvo under VECV, offering a range of Eicher-branded trucks and buses.

Best Auto Sector Stocks in India – FAQs

Here are some of the Best Stock Research Articles listed based on Top Sectors (Industries), Market Cap, and Fundamental Analysis Factors:

Disclaimer: The above article is written for educational purposes. The securities quoted are exemplary and are not recommendatory.