Small Cap Auto Parts Stocks

Small Cap Auto Parts Stocks

The table below shows Small Cap Auto Parts Stocks based on the Highest Market Capitalization.

NameMarket Cap (Cr)Close Price (rs)
Sharda Motor Industries Ltd4410.9846271483.6
Shanthi Gears Ltd4359.761926568.3
Banco Products (India) Ltd4252.141336594.55
JTEKT India Ltd4174.014128164.15
Subros Ltd4040.376176619.35
Steel Strips Wheels Ltd3359.072202214.05
Lumax AutoTechnologies Ltd3281.111919481.4
Sundaram Clayton Ltd3220.3439941591.7

Content:

What are Small Cap Auto Parts Stocks?

Small cap auto parts stocks represent companies within the automotive sector with a market capitalization typically under $2 billion. These companies specialize in manufacturing and distributing various auto components, often focusing on innovative or niche parts, providing them with potential growth opportunities but also higher volatility.

These stocks are attractive because they may benefit from specific trends such as the rise in electric vehicles or advanced automotive technologies. Their smaller size allows for quicker adaptation to industry changes compared to their larger counterparts, potentially leading to rapid growth.

However, investing in small-cap auto parts stocks carries risks, including susceptibility to economic downturns that can sharply reduce automotive production and sales. Additionally, these companies often face intense competition from both domestic and international manufacturers, which can pressure profits and market share.

Best Small Cap Auto Parts Stocks

The table below shows the Best Small Cap Auto Parts Stocks based on 1 Year Return.

NameClose Price (rs)1Y Return (%)
Banco Products (India) Ltd594.55120.20
Subros Ltd619.3596.08
Sharda Motor Industries Ltd1483.687.13
Lumax AutoTechnologies Ltd481.453.01
Steel Strips Wheels Ltd214.0538.27
Shanthi Gears Ltd568.335.14
JTEKT India Ltd164.1532.64
Sundaram Clayton Ltd1591.75.28

Top Small Cap Auto Parts Stocks

The table below shows the Top Small Cap Auto Parts Stocks based on 1-Month Return.

NameClose Price (rs)1M Return (%)
Subros Ltd619.357.78
Sundaram Clayton Ltd1591.71.80
Shanthi Gears Ltd568.31.64
Lumax AutoTechnologies Ltd481.41.35
Banco Products (India) Ltd594.55-1.75
JTEKT India Ltd164.15-5.36
Steel Strips Wheels Ltd214.05-7.61
Sharda Motor Industries Ltd1483.6-7.98

List Of Best Small Cap Auto Parts Stocks

The table below shows the List Of Best Small Cap Auto Parts Stocks based on the highest day Volume.

NameClose Price (rs)Daily Volume (Shares)
Steel Strips Wheels Ltd214.05354359
Lumax AutoTechnologies Ltd481.4119461
JTEKT India Ltd164.1568198
Subros Ltd619.3564185
Shanthi Gears Ltd568.331759
Banco Products (India) Ltd594.5528565
Sharda Motor Industries Ltd1483.622212
Sundaram Clayton Ltd1591.712821

Best Small Cap Auto Parts Stocks

The table below shows the Best Small Cap Auto Parts Stocks based on the PE Ratio.

NameClose Price (rs)PE Ratio (%)
Shanthi Gears Ltd568.352.46
Subros Ltd619.3548.35
JTEKT India Ltd164.1543.12
Lumax AutoTechnologies Ltd481.423.44
Banco Products (India) Ltd594.5516.95
Steel Strips Wheels Ltd214.0516.94
Sharda Motor Industries Ltd1483.616.69
Sundaram Clayton Ltd1591.7-26.81

Who Should Invest In Small Cap Auto Parts Stocks?

Investors with a high-risk tolerance and an interest in the automotive industry should consider investing in small-cap auto parts stocks. These stocks offer the potential for significant growth as the industry adapts to new technologies and market demands, making them suitable for speculative investment strategies.

Investors who are capable of conducting thorough research and continuously monitoring market trends will find small-cap auto parts stocks appealing. These stocks require an understanding of industry dynamics, including technological advancements and regulatory changes that can dramatically influence company fortunes.

Additionally, these investments are ideal for those who can diversify across various sectors and companies to mitigate risks. Investors should be prepared for potential volatility and be proactive in adjusting their portfolios based on performance and evolving industry conditions.

How To Invest In The Small Cap Auto Parts Stocks?

To invest in small-cap auto parts stocks, create an account with Alice Blue and utilize their detailed market research tools to identify promising companies. Focus on those that show potential for innovation and market expansion, particularly in emerging automotive technologies like electric vehicles and advanced electronics.

Begin by analyzing each company’s financial health, product portfolio, and competitive edge in the market. Use Alice Blue’s insights to evaluate their growth strategies and industry position. This includes looking at customer bases, supply chain robustness, and adaptability to industry shifts.

Maintain a diversified investment portfolio to mitigate the inherent risks of small-cap investments. Regularly update your strategy based on market analysis and sector performance trends. Keeping a close eye on industry news and technological advancements can also provide timely insights for making informed decisions.

Performance Metrics Of Small Cap Auto Parts Stocks

Performance metrics of small-cap auto parts stocks include revenue growth, earnings per share (EPS), debt-to-equity ratio, and return on equity (ROE). These indicators help evaluate a company’s financial health, operational efficiency, and growth potential in the competitive auto parts industry.

Revenue growth is essential for assessing a company’s ability to expand its market presence and sales. For auto parts manufacturers, this indicates not only increased production but also successful market penetration and acceptance of their products. A consistent upward trend can signal a robust business model.

EPS and ROE provide insights into profitability and financial efficiency. High EPS values indicate strong profit generation relative to shares outstanding, while a solid ROE shows effective capital management. These metrics are crucial for understanding how well a company utilizes its resources to generate earnings.

Benefits Of Investing In Small Cap Auto Parts Stocks

The main benefits of investing in small-cap auto parts stocks include high growth potential and the opportunity to capitalize on innovations in the automotive industry. These companies often respond quicker to market demands and technological advancements, offering substantial returns for risk-tolerant investors.

  • Gateway to Growth: Small cap auto parts stocks represent a prime opportunity for significant growth. These companies, often pioneers in their niche, can quickly scale operations and increase market share, providing potentially high returns to investors who get in early on promising developments.
  • Innovation Hub: Investing in these stocks offers exposure to cutting-edge automotive technologies, such as components for electric vehicles and advanced electronics. Small-cap companies are typically more agile, allowing them to innovate faster than their larger counterparts, making them instrumental in driving industry changes.
  • Market Reactivity: Due to their size, small-cap auto parts companies can adapt rapidly to new market trends or regulatory changes, potentially leading to quicker gains in stock value. Their ability to pivot and innovate in response to evolving consumer and regulatory demands creates unique investment opportunities.

Challenges Of Investing In Small Cap Auto Parts Stocks

The main challenges of investing in small-cap auto parts stocks include high volatility, market sensitivity to economic cycles, and liquidity issues. These stocks can fluctuate greatly based on industry developments and broader economic conditions, requiring investors to manage risk and monitor investments closely.

  • Ride the Volatility Wave: Small cap auto parts stocks are highly volatile, with stock prices susceptible to sharp swings based on market sentiment, economic reports, and industry trends. This unpredictability requires investors to stay alert and responsive, making these stocks more suited for those who can actively manage their investments.
  • Cycle Sensitivity: The auto parts industry is closely tied to economic cycles. In downturns, reduced consumer spending and slowed manufacturing can sharply decrease demand for auto parts, impacting the financial health of small-cap companies disproportionately. Investors need to be aware of these cycles to time their investments wisely.
  • Liquidity Dilemmas: Small-cap stocks often suffer from lower liquidity compared to larger companies, making it harder to buy or sell large quantities of shares without affecting the price. This can be challenging during market downturns when selling may be necessary but difficult without incurring significant losses.

Introduction to Small Cap Auto Parts Stocks

Sharda Motor Industries Ltd

The Market Cap of Sharda Motor Industries Ltd is ₹4,410.98 crores. It has recorded a monthly return of 87.13% and an annual return of -7.98%. The stock is currently 10.67% below its 52-week high.

Sharda Motor Industries Limited, based in India, manufactures and assembles auto components. The company’s primary products include motor vehicle parts such as suspensions, silencers, and exhaust pipes. Their production range features exhaust systems, catalytic converters, suspension systems, sheet metal components, and plastic parts for automotive applications.

Their exhaust systems cover various types, including Passenger Vehicle-BS IV and VI Systems, Commercial Vehicle-BS IV and VI Systems, Tractor-Tier IV Systems, and more. Suspension systems include components like Arm Lower Control Comp RH 2WD, Upper Arm Assy, and Front Axle Assy 4WD. The company operates manufacturing facilities across seven locations in five states in India.

Shanthi Gears Ltd

The Market Cap of Shanthi Gears Ltd is ₹4,359.76 crores. It has achieved a monthly return of 35.15% and an annual return of 1.65%. The stock is currently 13.39% below its 52-week high.

Shanthi Gears Limited is an industrial gearing solutions company involved in designing and manufacturing gears, gearboxes, geared motors, and gear assemblies using its integrated manufacturing facilities. It offers a range of products and services, including gear solutions for various applications and specialized gear reconditioning services.

Its product lineup includes helical gearboxes, bevel helical gearboxes, worm gearboxes, geared motors, extruder gearboxes, cooling tower gearboxes, gears and pinions, and special gearboxes. These products cater to industries like steel, cement, sugar, cranes, material handling, power, paper, rubber, plastics, off-highway and mining, compressors, railways, textile, and aerospace. The company also provides facilities for engineering, R&D, foundry, forging, fabrication, heat treatment, CNC machining, gear grinding, testing, metrology, calibration, and quality assurance.

Banco Products (India) Ltd

The Market Cap of Banco Products (India) Ltd is ₹4,252.14 crores. It has a monthly return of 120.20% and an annual return of -1.76%. The stock is currently 23.45% below its 52-week high.

Banco Products (India) Limited specializes in engine cooling and sealing systems for automotive and industrial uses. Their cooling systems include radiators, charged air coolers, oil coolers, fuel coolers, battery coolers, and inverter coolers, made from aluminum and copper/brass. Accessories include expansion tanks, fan motor assemblies, and various mounting and plumbing components.

The company’s sealing systems feature engine cylinder head gaskets, heat shields, and industrial gaskets in various materials and sizes. These materials include multi-layered steel, graphite composite, steel fiber composite, compressed fiber, rubber cork, rubber pre-coated beaded, edge molded, and copper gaskets. Its subsidiaries are Banco Gaskets (India) Limited and Nederlands Radiateuren Fabriek B.V.

JTEKT India Ltd

The Market Cap of JTEKT India Ltd is ₹4,174.01 crores. It has a monthly return of 32.65% and an annual return of -5.36%. The stock is currently 14.53% below its 52-week high.

JTEKT India Limited is an India-based company engaged in manufacturing and assembling automotive components. It produces rack and pinion steering systems, hydraulic power steering systems, column-type electric power steering systems, and driveline products. Additionally, it manufactures machine tools and bearings.

The company is a tier 1 supplier to OEM customers, providing automotive products to manufacturers like Maruti Suzuki, TATA Motors, Honda, Toyota Kirloskar, Renault Nissan, Mahindra & Mahindra, E-Z-Go Textron, Trenton Pressing LLC, JTEKT Column Systems, and companies in France for both commercial and passenger vehicles.

Subros Ltd

The Market Cap of Subros Ltd is ₹4,040.38 crores. It has posted a monthly return of 96.09% and an annual return of 7.79%. The stock is currently 18.47% below its 52-week high.

Subros Limited is an India-based manufacturer of thermal products for automotive applications. The company produces compressors, condensers, heat exchangers, and all necessary components for completing air conditioning (AC) systems. It serves various segments, including passenger vehicles, buses, trucks, refrigerated transport, and railways.

Subros’ car AC and engine cooling parts include blowers, evaporators, cooling modules, hoses, and tubes. Its railway AC products feature roof-mounted driver cab ACs for diesel and electric automotive, and EMU cab ACs. Additionally, Subros offers transport refrigeration systems and residential air conditioners, supplying OEM/ODM products to various brands.

Steel Strips Wheels Ltd

The Market Cap of Steel Strips Wheels Ltd is ₹3,359.07 crores. It has a monthly return of 38.28% and an annual return of -7.62%. The stock is currently 39.69% below its 52-week high.

Steel Strips Wheels Limited, based in India, manufactures steel and alloy wheel rims for automotive vehicles. Their product range includes steel wheels, alloy wheels, and hot rolling mills. They produce tubeless, multi-piece, high vent, semi-full face, and weight-optimized (flow-formed) wheels under the steel wheel category.

The company provides wheels for two and three-wheelers, cars, multipurpose utility vehicles (MUVs), commercial vehicles, high-speed trailers, caravans, and tractors. Steel Strips Wheels operates primarily in India and also has an international presence. Their manufacturing facilities are located in Punjab, Tamil Nadu, Jharkhand, and Gujarat.

Lumax AutoTechnologies Ltd

The Market Cap of Lumax AutoTechnologies Ltd is ₹3,281.11 crores. It has achieved a monthly return of 53.02% and an annual return of 1.35%. The stock is currently 6.98% below its 52-week high.

Lumax Auto Technologies Limited is an India-based diversified auto component manufacturer. The company began its operations by manufacturing two-wheeler lighting. It collaborates with original equipment manufacturers (OEMs) in various segments, including passenger vehicles, two-wheelers, three-wheelers, commercial vehicles, and off-road vehicles.

The company produces a range of automotive products, such as intake systems, integrated plastic modules, two-wheeler chassis and lighting, gear shifters, seat structures and mechanisms, and electrical and electronic components for two, three, and four-wheeler segments. It operates approximately 13 manufacturing facilities nationwide. Its subsidiaries include Lumax Mannoh Allied Technologies Limited, Lumax Cornaglia Auto Technologies Private Limited, Lumax Metallics Private Limited, Lumax FAE Technologies Private Limited, and Lumax Jopp Allied Technologies Private Limited.

Sundaram Clayton Ltd

The Market Cap of Sundaram Clayton Ltd is ₹3,220.34 crores. It has a monthly return of 5.29% and an annual return of 1.80%. The stock is currently 15.92% below its 52-week high.

Sundaram Clayton Limited (SCL) is a major auto components manufacturer and distributor in India, renowned for supplying aluminium die castings to both automotive and non-automotive sectors. Since its inception in 1962, SCL has achieved numerous milestones, becoming a preferred provider of machined and sub-assembled aluminium castings.

SCL’s involvement begins at the early design stage, extending to the development and supply of finished products. The company has built strategic partnerships with global OE and Tier One companies. With robust manufacturing driven by TQM, TPM, Lean practices, and advanced technologies, SCL is well-positioned to meet future industry needs in light metal castings.

Best Small Cap Auto Parts Stocks – FAQs

1. Which Are The Best Small Cap Auto Parts Stocks?

Best Small Cap Auto Parts Stocks #1: Sharda Motor Industries Ltd
Best Small Cap Auto Parts Stocks #2: Shanthi Gears Ltd
Best Small Cap Auto Parts Stocks #3: Banco Products (India) Ltd
Best Small Cap Auto Parts Stocks #4: JTEKT India Ltd
Best Small Cap Auto Parts Stocks #5: Subros Ltd

The Top Best Small Cap Auto Parts Stocks based on market capitalization.

2. What Are The Top Small Cap Auto Parts Stocks?

The top small-cap auto parts stocks include Sharda Motor Industries Ltd, Shanthi Gears Ltd, Banco Products (India) Ltd, JTEKT India Ltd, and Subros Ltd. These companies are prominent in their sector, offering a range of products from gears to cooling systems for automotive applications.

3. Can I Invest In Small Cap Auto Parts Stocks?

Yes, you can invest in small-cap auto parts stocks. These stocks often offer high growth potential as they serve the automotive industry, which can rapidly evolve with new technologies. However, it’s important to be aware of their volatility and industry-specific risks, making thorough research essential before investing.

4. Is It Good To Invest In Small Cap Auto Parts Stocks?

Investing in small-cap auto parts stocks can be beneficial due to their potential for significant growth, especially as the automotive industry evolves towards electric and autonomous vehicles. However, such investments carry higher risks due to market volatility and the cyclical nature of the auto industry. Proper due diligence is crucial.

5. How To Invest In Small Cap Auto Parts Stocks?

To invest in small-cap auto parts stocks, open an account with Alice Blue. Leverage their analytics to identify companies poised for growth, such as those involved in emerging automotive technologies. Diversify your investments to mitigate risks and monitor industry trends and company performance closely for strategic decision-making.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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