Introduction
Auto ancillary stocks with high returns are attracting attention. Companies with ROE above 25% show strong profitability, indicating how efficiently they generate profits from shareholder equity. These stocks often reflect robust business models.
ROCE measures a company’s efficiency in using capital to generate profits. Stocks with ROCE above 25% indicate effective use of resources and strong operational performance. Tracking these metrics can help identify financially healthy auto ancillary companies.
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Motherson Sumi Wiring
On August 14, 2025, Motherson Sumi Wiring India Ltd opened at ₹37.72, up 0.13% from its previous close of ₹37.67. The stock reached a high of ₹37.95 (0.76%) and a low of ₹37.10. By 3:50 PM, it traded at ₹37.82, a 0.40% increase, with a market cap of ₹25,080.95 crore.
Motherson Sumi Wiring India Ltd has a strong ROE of 35.9% and an impressive ROCE of 42.5%, reflecting high profitability and efficient capital use.
Motherson Sumi Wiring India Ltd (NSE: MSUMI), a JV with Sumitomo Wiring Systems, is a market leader in India’s automotive wiring harness industry, holding over 40% market share and serving major OEMs.
Sharda Motor
On August 14, 2025, Sharda Motor Industries Ltd opened at ₹1,030.15, up 0.52% from its previous close of ₹1,024.85. The stock reached a high of ₹1,039.00 (1.38%) and a low of ₹1,007.15. By 3:38 PM, it traded at ₹1,019.50, a 0.52% decrease, with a market cap of ₹5,852.72 crore.
Sharda Motor Industries Ltd has a strong ROE of 29.7% and a ROCE of 38.7%, reflecting solid profitability and efficient capital utilization.
Sharda Motor Industries Ltd (NSE: SHARDAMOTR) manufactures and assembles auto components and white goods parts, offering products like emission control systems, suspension systems, roof systems, control arms, front axle assemblies, and soft-top canopies.
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Banco Products
On August 14, 2025, Banco Products (India) Ltd opened at ₹541.15, up 0.19% from its previous close of ₹540.05. The stock reached a high of ₹549.80 (1.77%) and a low of ₹532.80. By 3:41 PM, it traded at ₹537.20, a 0.53% decrease, with a market cap of ₹7,683.96 crore.
Banco Products (India) Ltd has a strong ROE of 33.3% and a ROCE of 33.4%, indicating high profitability and efficient capital use.
Banco Products (India) Ltd (NSE: BANCOINDIA), established in 1961, manufactures engine cooling modules and systems for automotive and industrial applications, offering radiators, fuel and oil coolers, AC condensers, plastic tanks, and hybrid gaskets globally.
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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.
FAQs
A: Motherson Sumi Wiring India Ltd, Sharda Motor Industries Ltd, and Banco Products (India) Ltd have ROE and ROCE above 25%.
A: High ROE and ROCE indicate strong profitability and efficient capital use, highlighting financially robust auto ancillary companies.
A: ROCE (Return on Capital Employed) shows how efficiently a company uses its capital to generate profits.
A: ROE (Return on Equity) measures how efficiently a company generates profits from shareholders’ equity.
