Top Auto Part Stocks with High DII Holding

The table below shows the top auto part stocks with high DII holdings based on the highest market capitalization.

What Are The Auto Part Stocks with High DII Holding?

Auto Part stocks with high DII (Domestic Institutional Investor) holdings are shares of companies in the automotive components sector that have attracted significant investment from domestic institutional investors. These stocks typically represent well-established firms with strong manufacturing capabilities, diverse product portfolios, and consistent market presence in the auto parts industry.

High DII holding often indicates that these companies are considered attractive by domestic institutional investors such as mutual funds, insurance companies, and pension funds. It may reflect factors such as strong financials, growth potential, or strategic importance in the domestic automotive supply chain.

However, it’s important to note that DII holdings can fluctuate, and high domestic investment doesn’t guarantee future performance. Investors should conduct thorough research and consider various factors beyond DII holding when making investment decisions in the auto parts sector.

Features Of Top Auto Part Stocks with High DII Holding

The main features of top Auto Part stocks with high DII holding include diverse product portfolios, strong relationships with OEMs, technological capabilities, aftermarket presence, and consistent financial performance. These characteristics make them attractive to both domestic and retail investors seeking exposure to the automotive sector.

• Product Diversity: These companies typically offer a wide range of auto components. This diversification helps mitigate risks associated with demand fluctuations in specific product categories.

• OEM Relationships: Top auto part stocks usually have strong ties with major automobile manufacturers. These relationships provide steady demand and opportunities for the co-development of new products.

• Technological Prowess: Leading auto part companies invest in R&D to develop advanced components. Their ability to innovate and meet evolving automotive technology needs is crucial for long-term success.

• Aftermarket Presence: Many of these stocks represent companies with a strong presence in the aftermarket segment. This provides an additional revenue stream and helps balance cyclicality in OEM demand.

• Financial Stability: Auto-part companies with high DII interest often demonstrate consistent financial performance. Their ability to maintain profitability through automotive cycles attracts institutional investors.

Best Auto Part Stocks with High DII Holding

The table below shows the Best Auto Part Stocks with High DII Holding based on 1 Year Return.

Top Auto Part Stocks with High DII Holding in India

The table below shows the Top Auto Part Stocks with High DII Holding in India based on the highest day Volume.

Factors To Consider When Investing In Auto Part Stocks with High DII Holding

When investing in Auto Part stocks with high DII holding, consider the company’s product mix and its alignment with automotive trends like electrification and connected vehicles. Evaluate their client base diversification and exposure to different vehicle segments.

Analyze the overall automotive industry trends, including vehicle production forecasts, regulatory changes affecting emission norms, and shifts in consumer preferences. Consider the company’s ability to adapt to these changes.

Examine the company’s financial metrics, including revenue growth, profit margins, and return on capital employed. Also, assess their capital expenditure plans and ability to manage working capital efficiently in the auto component industry.

How To Invest In Auto Part Stocks with High DII Holding?

To invest in Auto Part stocks with high DII holding, start by researching companies with significant domestic institutional investment. Use financial websites or stock screeners to identify these stocks. Open an account with a reliable broker like Alice Blue to execute trades.

Conduct thorough due diligence on the shortlisted companies. Analyze their financial statements, product portfolios, client relationships, and reasons for high DII interest. Consider consulting automotive industry analysts for insights on sector trends and competitive dynamics.

Develop a diversified investment strategy. While focusing on high DII holding stocks, also consider other factors like valuation, growth potential, and risk. Implement a systematic investment plan to mitigate market timing risks.

Advantages Of Investing In Auto Part Stocks with High DII Holding

The main advantages of investing in Auto Part stocks with high DII holding include exposure to automotive sector growth, potential for stable returns, domestic market understanding, dividend potential, and participation in technological advancements. These factors make them attractive for investors seeking opportunities in the evolving automotive landscape.

• Automotive Sector Exposure: These stocks offer exposure to the growing automotive industry, benefiting from increasing vehicle production and technological advancements in the sector.

• Stability: High DII holding often indicates confidence from domestic institutional investors, potentially leading to more stable stock performance.

• Local Market Insight: DIIs typically have a deep understanding of the domestic market, which can translate to better-informed investment decisions in local auto part companies.

• Dividend Potential: Established auto part companies often pay regular dividends, offering income alongside potential capital appreciation.

• Tech Participation: Investing in these stocks allows participation in automotive technological advancements, including electric vehicles and autonomous driving technologies.

Risks Of Investing In Auto Part Stocks with High DII Holding

The main risks of investing in Auto Part stocks with high DII holding include cyclical demand, technological disruption, regulatory challenges, raw material price fluctuations, and potential for DII sentiment shifts. These factors can impact stock performance and require careful consideration.

• Cyclical Nature: The auto industry is cyclical, and component makers are affected by fluctuations in vehicle demand. Economic downturns can significantly impact sales and profitability.

• Tech Disruption: Rapid changes in automotive technology, especially electrification, can make existing components obsolete. Companies must continuously innovate to remain relevant.

• Regulatory Pressures: Changing emission norms and safety regulations can require significant product modifications, potentially increasing costs and affecting margins.

• Input Cost Volatility: Fluctuations in raw material prices, especially metals, can impact profit margins if companies are unable to pass on cost increases.

• DII Sentiment Shifts: While high DII holding can be positive, it also poses a risk of significant selling pressure if institutional sentiment changes, potentially leading to stock price volatility.

Introduction to Auto Part Stocks with High DII Holding

Samvardhana Motherson International Ltd

The Market Cap of Samvardhana Motherson International Ltd is ₹94,971.55 crore. The stock’s 1-month return is 34.36%, and its 1-year return is 110.26%. It is currently 0.85% away from its 52-week high.

Samvardhana Motherson International Limited is a globally diversified manufacturer providing full system solutions to automotive and other industries. Its diversified product portfolio includes electrical distribution systems, vehicle interior and exterior modules, rear vision systems, moulded plastic parts, and injection moulding tools. The company also offers rubber components, lighting systems, electronics, precision metals, IT solutions, and telematics technologies.

The company’s segments are Wiring harness, Modules and polymer products, and Emerging businesses. Emerging businesses include elastomers, lighting & electronics, precision metals & modules, technology & industrial solutions, logistics solutions, aerospace, health & medical, and services operations. Its wholly-owned subsidiary is Samvardhana Motherson Automotive Systems Group B.V.

CIE Automotive India Ltd

The Market Cap of CIE Automotive India Ltd is ₹18,977.60 crore. The stock’s 1-month return is 19.49%, and its 1-year return is 15.05%. It is currently 3.41% away from its 52-week high.

CIE Automotive India Limited, formerly Mahindra CIE Automotive Limited, is a multi-technology automotive components supplier in India. The company supplies forgings, castings, stampings, magnetic products, gears, and composites to the automotive market, including cars, utility vehicles, commercial vehicles, and tractors. Its forging business offers products such as crankshafts, stub axles, and steel pistons.

The company’s stamping business provides sheet metal stampings and components, while the castings business offers turbocharger housings and transmission parts. The aluminum casting business specializes in high-pressure and gravity die casting for complex engine components and brake system parts. CIE Automotive India has over 29 manufacturing facilities, including four in Europe and one in Mexico.

Minda Corporation Ltd

The Market Cap of Minda Corporation Ltd is ₹9,839.45 crore. The stock’s 1-month return is 7.60%, and its 1-year return is 62.94%. It is currently 2.81% away from its 52-week high.

Minda Corporation Limited, based in India, manufactures automotive components, primarily safety and security systems for the automotive industry. Its diverse product portfolio includes mechatronics, vehicle access systems, wiring harnesses, interior plastics, advanced technologies, and aftermarket products. Mechatronics products include ignition switches, keyless entry systems, and aluminum die-casting components.

The company’s aftermarket products include helmets, fiber parts, wiper blades, ball bearings, and two-wheeler air filters. Minda Corporation caters to auto original equipment manufacturers (OEMs) and offers products for various vehicle segments, including two and three-wheelers, passenger vehicles, commercial vehicles, and off-road vehicles.

Shriram Pistons & Rings Ltd

The Market Cap of Shriram Pistons & Rings Ltd is ₹8,571.66 crore. The stock’s 1-month return is -5.24% and its 1-year return is 142.66%. It is currently 13.87% away from its 52-week high.

Shriram Pistons & Rings Limited, an India-based company, manufactures products such as pistons, piston pins, piston rings, and engine valves. The company serves both domestic and international markets and is primarily engaged in assembling automobile pistons. It operates through the automotive components segment and caters to OEMs, aftermarket, and export markets.

The company’s diverse product portfolio includes thin-walled pistons, DLC-coated pins, forged pistons, cooling gallery pistons, nano friks, and piston pin bore bushings. Additional products include cylinder liners, crankshafts, connecting rods, filters, and gaskets.

Pricol Ltd

The Market Cap of Pricol Ltd is ₹5,514.53 crore. The stock’s 1-month return is 6.61%, and its 1-year return is 91.32%. It is currently 2.93% away from its 52-week high.

Pricol Limited, an India-based automotive technology and precision-engineered solutions company, operates in driver information systems, connected vehicle solutions, and actuation and control systems. It caters to automotive OEMs in two/three-wheeler, passenger vehicle, commercial vehicle, farm equipment, and off-road vehicle segments, with approximately 2,000 product variants.

The company primarily operates in the automotive segment, manufacturing and selling instrument clusters and other allied automobile components to OEMs and replacement markets. Pricol has eight manufacturing facilities across Coimbatore, Manesar, Pantnagar, Pune, Satara, and Sri City in India, and one plant in Jakarta, Indonesia.

Sansera Engineering Ltd

The Market Cap of Sansera Engineering Ltd is ₹5,502.52 crore. The stock’s 1-month return is 21.24%, and its 1-year return is 43.26%. It is currently 1.45% away from its 52-week high.

Sansera Engineering Limited, an India-based integrated manufacturer, produces complex precision forged and machined components for automotive and non-automotive sectors. In the automotive sector, it supplies components such as connecting rods, rocker arms, crankshafts, and gear shifter forks for engines, transmissions, suspensions, and other systems in two-wheelers, passenger vehicles, and commercial vehicles.

In the non-automotive sector, Sansera manufactures precision components for aerospace, off-road, agriculture, and engineering segments. Its subsidiaries include Fitwel Tools and Forgings Private Limited and Sansera Engineering Limited Mauritius.

Lumax AutoTechnologies Ltd

The Market Cap of Lumax AutoTechnologies Ltd is ₹3,286.22 crore. The stock’s 1-month return is 11.07%, and its 1-year return is 49.82%. It is currently 0.74% away from its 52-week high.

Lumax Auto Technologies Limited, an India-based diversified auto component manufacturer, started with two-wheeler lighting. It works with OEMs in passenger vehicles, two-wheelers, three-wheelers, commercial vehicles, and off-road vehicle segments. The company manufactures products such as intake systems, integrated plastic modules, two-wheeler chassis and lighting, gear shifters, and seat structures.

Lumax Auto Technologies has around 13 manufacturing facilities across India. 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 ₹3,129.70 crore. The stock’s 1-month return is 0.54%, and its 1-year return is 5.39%. It is currently 15.80% away from its 52-week high.

Sundaram Clayton Limited (SCL) is one of India’s largest auto components manufacturers, specializing in aluminum die castings for automotive and non-automotive sectors. Established in 1962, SCL has become a preferred supplier of machined and sub-assembled aluminum castings, contributing from design to finished product development.

SCL has built strategic partnerships with global OEMs and Tier-one suppliers. It’s robust manufacturing, driven by TQM, TPM, and lean practices, along with state-of-the-art technologies, positions SCL to meet the industry’s future needs in light metal castings.

Top Auto Part Stocks with High DII Holding – FAQs 

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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.