Business

Tailwinds are back? 5 stocks from auto ancillary space with an upside potential up to 26%

By Dan Neff

Lumax Industries Limited is a company that is engaged in the business of manufacturing, trading and supply of auto components, mainly automotive lighting systems for four-wheeler and two-wheeler vehicles.

Synopsis

While it might surprise many, the fact is that the majority of sales in the auto industry are financed through an auto loan. That is the reason why in the second half of 2018 when the NBFC crisis happened, one of the biggest hits was taken by the auto industry and hence auto ancillary. Now things are coming back to normal as companies have made adjustments for many other headwinds.We take a look at companies where analysts are projecting further upside in the next 12 months. The list is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.

After facing rising input costs and supply chain disruption, the Macro environment in which auto ancillaries companies operate have turned favourable after a long period of time. Sometimes it is LCV and HCV which drives the demand, at other point time, better four and two wheeler numbers are pushing the demand up for auto ancillary companies, some of which are changing their business model to stay relevant in times of EV. It is after a long

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Dan Neff