Steer forward your portfolio with Auto Ancillaries of the year

Automotive sector has grown 13.4 per cent during Q1FY17; and during the year FY16, the auto industry’s domestic market has grown by 3.78 per cent and exports by 1.91 per cent. As per Society of Indian Automobile Manufacturers (SIAM), the performance of the Auto sector with respect to units sold, is: Passenger cars/utility vehicle has grown by 7.02 per cent; van sales have risen by 4.06 per cent; MHCV (medium and heavy commercial vehicle) is up by 28.15 per cent; LCV (Light commercial vehicle) has grown by 2.59 per cent; 2W has risen by 2.73 per cent; 3W is marginally up by 0.25 per cent. In line with the automotive sector's growth, auto ancillary companies also have risen like a shining star during the year.

We have analysed the performance of 71 auto ancillary companies during the last one year. Out of the 71, only 34 companies have announced their latest Q1FY17 results. 24 among these 34 have posted positive Q1FY17 results on a YoY basis; and from the residual 37 companies, which are in que to announce their Q1FY17 results, 22 companies have given positive Q4FY16 numbers on a YoY basis.

We have picked up our top five performers on a yearly basis, who have rewarded our investors handsomely during the last one year.



Our top five performers for the Iast one year are- Pricol (208%), Porwal Auto Components (147%), Harita Seating Systems (138%), Rane Brake Lining (108%) and Minda Industries (99%). Out of 71, only 28 companies have rewarded investors with more than 10 per cent of returns over the last year. Moreover. auto ancillary sector was on the hit list of the investors. We can now wait and watch, how the sector retains the investors' interest going forward.