TATA Group is one of India’s largest conglomerates, comprising 30 companies across ten verticals. The group operates in over 100 countries across six continents.
Tata Sons is the principal investment holding company and promoter of Tata Companies. The group imprints are found in a wide range of sectors. As of March 31, 2024, there are 26 publicly traded Tata companies with a total market value of $365 billion (Rs 24 trillion).
Here are two lesser-known auto ancillary stocks from the Tata Group:
Automobile Corporation Of Goa Ltd is a small-cap company with a market capitalization of Rs 2,067 crore. On Friday, the company’s shares closed at Rs 3,395 per share, up 10.92 percent from the previous close price.
Automobile Corporation of Goa Ltd. was the first major engineering unit to be set up in Goa, it was jointly promoted in 1980 by Tata Motors Ltd, and EDC Ltd.
The company manufactures Sheet metal components, assemblies, and bus coaches at its factories. The company is a supplier of pressings and assemblies to Tata Motors’ Pune factory. The Company is engaged in the manufacturing and sale of sheet metal fabricated parts, having an automobile application to Tata Cummins Private Limited.
The company’s revenue grew by 15% year-over-year, rising from ₹506 crore in FY22-23 to ₹584 crore in FY23-24. During the same period, net profit surged by 36%, increasing from ₹28 crore to ₹38 crore.
Shares of Automobile Corporation of Goa Ltd have increased by 76% in the last six months and 60% over the past year. Tata Motors Ltd holds the majority shareholding with a 48.98% stake, while retail investors own 50.21%.
The company generates 77% of its revenue from the bus body segment and 23% from the pressings segment. It operates five manufacturing plants located in Goa, Pune, and Karnataka.
Automotive Stampings & Assemblies Ltd is a small-cap company with a market capitalization of Rs 1,592 crore. On Friday, the company’s shares closed at Rs 1,004 per share, down 0.74 percent from the previous close price.
The Automotive Stampings & Assemblies revenue has increased by 6.2 percent year on year, from Rs 828 crore in FY22-23 to Rs 880 crore in FY23-24. During the same timeframe, Net profit has significantly increased by 150 percent from Rs 8 crore to Rs 20 crore.
Automotive Stampings & Assemblies Ltd mainly manufactures sheet-metal stampings, welded assemblies, and modules for passenger cars and commercial vehicles (largely for Tata Motors Limited) those products account for more than 95% of the total revenue.
The company manufactures products like sheet metal stampings, welded assemblies, Battery tray assemblies, Aluminium Cooling Tubes and Heavy Fabricated Parts specifically designed for use in the Passenger and Commercial Vehicles segment, 2/3 Wheelers Segment, and off-road segment.
The company operates 5 manufacturing facilities located in Chakan, Pune, Pantnagar, Sanand, and Jamshedpur. In FY24, it commenced operations at two new Plants situated in Sanand and Jamshedpur.
Automotive Stampings & Assemblies Ltd shares have increased by 120% in the last six months and have risen by 144% over the past 12 months.
Tata AutoComp Systems Limited holds the majority of shares, owning 75% of the company, while retail investors hold the remaining 24.93%.
Written by Omkar Chitnis
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