The Auto Ancillary Industry consists of businesses that produce additional parts and components used in vehicles. These parts, such as tires, batteries, brakes, suspension systems, and more, are essential for the proper functioning of automobiles.
There are currently 110 listed companies in the Auto- ancillary sector in India. Here we have curated the list of fundamentally strong Auto ancillary companies which have PEG ratio of less than 1.
Shriram Pistons and Rings Ltd:
The company is primarily engaged in the manufacturing of a broad range of pistons, piston pins, piston rings, engine valves. The company’s clients include Maruti, Honda, Jaguar, BMW. They have 3 manufacturing plants located across Uttar Pradesh and Rajasthan.
On 3rd november, shares of Shriram Pistons and Rings Ltd closed at Rs. 1,000 per share. The company has a market capitalization of Rs. 4,400.58 crores and it has delivered 72.61 percent returns in the last 6 months.
Looking at the profitability ratios, the company reported return on equity (ROE) of 21.27 percent and return on capital employed (ROCE) of 25.82 percent. Most importantly, the PEG ratio of Shriram Pistons and Rings Ltd is 0.81.
Banco Products Ltd:
Banco products Ltd is engaged in manufacturing engine cooling modules and systems. Its product portfolio includes Radiators, charged air coolers, fuel coolers etc. its customers include ashok leyland, eicher, mahindra, godrej etc.
On 3rd november, shares of Banco Products closed at Rs. 465 per share. The company has a market capitalization of Rs. 3,295.58 crores and it has delivered 78.43 percent returns in the last 6 months.
Looking at the profitability ratios, the company reported return on equity (ROE) of 23.77 percent and return on capital employed (ROCE) of 28.2 percent. The PEG ratio of Banco Products Ltd is 0.81.
Pricol Ltd:
Pricol Ltd is into manufacturing and selling of instrument clusters and other allied automobile components to OEMs. The company’s 80 percent of revenue comes from OEMs and it has more than 65 percent market share in 2W instrument clusters.
On 3rd November, shares of Pricol Ltd closed at Rs. 359.50 per share. The company has a market capitalization of Rs. 4,322.53 crores and it has delivered 57.06 percent in the last 6 months.
Looking at the profitability ratios, the company reported return on equity (ROE) of 19.48 percent and return on capital employed (ROCE) of 22.02 percent. The PEG ratio of Pricol Ltd is 0.99.
Written by: Vinit Israni
