Auto Ancillary companies refer to the companies that manufacture and supply parts, components, and accessories for the automotive industry.
These companies provide critical components that are used in the production and maintenance of vehicles, such as engines, transmissions, brakes, suspensions, and electrical systems.
Being debt-free allows companies to allocate more resources towards research, development, and expansion, positioning them for sustainable growth and profitability in the long run. This, in turn, can lead to steady returns for investors.
However, it’s important to note that being debt-free is not the only factor to consider when evaluating these stocks. Investors should also analyse other fundamental metrics such as revenue growth, profit margins, return on equity, and earnings per share to make informed investment decisions.
Following are a few auto-ancillary stocks under Rs. 200 that are debt-free:
Jullundur Motor Agency (Delhi) Limited
With a market cap of Rs. 106.6 crores, the stock surged by around 1.8 percent on NSE to Rs. 108 on Friday. Similarly, the net profit increased by 8.3 percent YoY from Rs. 4.8 crores to Rs. 5.2 crores, during the same period.
Jullundur Motor Agency (Delhi) Limited is engaged in the trading and distribution of automobile parts, accessories and petroleum products in India.
Since 1927, the company has been engaged in the business of distribution of auto spare parts across India through network of branches. It deals in products such as brakes, bearings, clutches, cooling system, engine components, suspension, power steering, oil & lubricants, filters etc.
Munjal Showa Limited
With a market cap of Rs. 697 crores, the stock surged by 7.6 percent on BSE to Rs. 177.8 on Friday.
The company has reported a significant growth in revenue from operations, with a nearly 8 percent YoY rise from Rs. 288 crores in Q1 FY24 to Rs. 311 crores in Q1 FY25. However, the net profit decreased marginally by 7.7 percent YoY from Rs. 13 crores to Rs. 12 crores, during the same period.
The stock has delivered positive returns of nearly 17.2 percent in one year, as well as around 21 percent of positive returns year-to-date.
Munjal Showa Limited was established in 1985 as a result of technical and financial collaboration between Hero Group and Showa Corporation, Japan.
The company operates as an ancillary and manufactures auto components for the two-wheeler and four-wheeler industry, with primary products being front forks, shock absorbers, struts, gas springs and window balancers for sale in India.
Written by Shivani Singh
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