The auto ancillary industry comprises businesses that supply supplementary components and accessories to complement the core products of automobile companies, such as tires, batteries, brakes, suspension, and more.
Currently, there are 110 listed companies in the auto ancillary industry in India. Here we have curated a list of fundamentally strong auto ancillary stocks that have high ROCE of up to 32 percent.
Automotive Axles Ltd:
Automotive Axles Limited (AAL) is a joint venture between the Kalyani Group and Meritor Inc., USA. Operating from its production facilities situated in Mysore, Karnataka, the company holds the distinction of being the foremost independent producer of Rear Drive Axle Assemblies in India. The company has a market capitalization of Rs. 3,461.93 crores.
On Wednesday, shares of Automotive Axles Limited were trading at Rs. 2,365.05 per share, the stock has delivered 18 percent returns in the last 1 year. Looking at the profitability ratios the company reported a return on equity (ROE) of 23.48 percent and a return on capital employed (ROCE) of 31.45 percent. The company has a net profit margin of 6.97 percent.
Rolex Rings Ltd
Rolex Rings is a prominent manufacturer of forged and machined components in India, ranking among the top 5 forging companies in the country.
The company is a global supplier of hot rolled forged, machined bearing rings, and automotive components for various vehicle segments, industrial machinery, wind turbines, and railways. The company has a market capitalization of Rs. 6,029.32 crores.
On Wednesday, shares of Rolex Rings Ltd were trading at Rs. 2,368.90 per share, the stock has delivered 24 percent returns in the last 1 year. Looking at the profitability ratios the company reported a return on equity (ROE) of 30.76 percent and a return on capital employed (ROCE) of 31.79 percent. The company has a net profit margin of 16.8 percent.
Shanthi Gears Ltd
Shanthi Gears, a subsidiary of Tube Investments of India, stands as a pioneer in the field of gear manufacturing and is recognized as one of India’s foremost gear manufacturers.
For more than four decades, Shanthi Gears has been the trusted choice for gear and gearbox solutions, serving some of the industry’s leading organizations. The company has a market capitalization of Rs. 3,466.02 crores.
On Wednesday, shares of Shanthi Gears Ltd were trading at Rs. 457.70 per share, the stock has delivered 16 percent returns in the last 1 year. Looking at the profitability ratios the company reported a return on equity (ROE) of 23.85 percent and a return on capital employed (ROCE) of 32.21 percent. The company has a net profit margin of 15.05 percent.
Written by: Vinit Israni
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