Auto

These auto ancillary stocks rose by up to 60% in the last one month. Should you invest?

Updated : December 27, 2019 01:51 PM IST

Auto ancillary companies, except Rane Brakes and Federal-Mogul, have corrected between 30-50 percent in the last one year.

Rane Brakes and Federal-Mogul have risen between 30-36 percent in the last one year.

Shares of auto ancillary companies have risen between 10 and 65 percent in the last one month. These companies include Igarashi Motors India, Sterling Tools, Rane Brake Lining, Rane Engine Valve, Sundaram Brake Linings, Pricol, India Nippon Electricals, Motherson Sumi Systems, PPAP Automotive, Federal Mogul Goetze India and Mahindra CIE Automotive.

Auto ancillary companies, except Rane Brakes and Federal-Mogul, have corrected between 30-50 percent in the last one year. Rane Brakes and Federal-Mogul have risen between 30-36 percent in the last one year.

Is the recent rally a sign of revival in the industry? Is this the right time to invest in these stocks?

According to Motilal Oswal Financial Services, the industry is "seeing signs of stability across segment" due to "high discounts, improvement in the availability of finance and rural sentiment improvement."

"Indian automakers are all set to transition to Bharat Stage 6 (BS6) norms from April, 2020. After operating in a tough environment over the last 15 months, the auto industry now faces the last hurdle of BS-VI transition, post which it will likely be ‘business as usual’ from H2FY21," the brokerage firm said.

Auto ancillary companies are trading mixed today with Igarashi Motors down by over 2 percent. PPAP Automotive and Mahindra CIE also traded lower by up to a percent.

However, Rane Engine, Rane Brake and Sundaram Brake rose between 7-20 percent. Others were also trading in the positive zone.

Meanwhile, Indian shares traded largely higher, snapping three sessions of losses, following gains in global peers on optimism over a US-China trade agreement. Most sectors were trading in the green led by banking and financial indices.

Catch all the latest market action and updates with CNBCTV18.com's blog.

These auto ancillary stocks rose by up to 60% in the last one month. Should you invest?

You May Also Like

JSW Steel Q2 profit falls 37 percent to Rs 1,595 crore

Yes Bank reports Q2 net profit at Rs 129.4 crore; NII drops to Rs 1,973 crore

Tech Mahindra Q2 net profit rises 9.5% QoQ to Rs 1,065 crore; declares special dividend

Trending on CNBC-TV18

recommended for you