Brokerage Picks Eight Auto Ancillary Stocks With Up to 63 Percent Upside After Strong October Sales

Monarch Networth Capital has issued Buy ratings on eight auto ancillary stocks, pointing to strong festive demand and improved vehicle affordability in October. The brokerage sees potential share price gains ranging from 8 percent to 63 percent across these companies.

Top Picks and Targets

Minda Corporation, RK Forgings and Sundram Fasteners stand out as the top choices for the brokerage due to their attractive current market valuations. ASK Automotive leads the list with a target price of 745 rupees against a current price of 593 rupees, marking a 63 percent upside. Fiem Industries follows with a target price of 2,805 rupees and a 36 percent upside. Minda Corporation carries an 867 rupee target with a 32 percent upside. Pricol and Sundram Fasteners both show a 23 percent potential gain, backed by targets of 810 rupees and 1,315 rupees respectively.

Growth Projections

SJS Enterprises, RK Forgings and Happy Forgings complete the eight-stock selection with projected upsides between 8 percent and 19 percent. Financial projections between fiscal years 2026 and 2029 highlight strong earnings growth for these firms. RK Forgings is projected to deliver a 101.4 percent compound annual growth rate in profit after tax alongside a 30.2 percent EBITDA growth rate. Minda Corporation and Sundram Fasteners expect profit growth rates of 25.4 percent and 17.7 percent. ASK Automotive anticipates revenue, EBITDA and profit growth rates of 20.1 percent, 22.3 percent and 25.6 percent.

Market Context

Context

Auto ancillary companies supply the parts and components that vehicle manufacturers use to build cars, two-wheelers and commercial trucks. Their business performance typically moves closely with overall vehicle sales trends during festive seasons and economic shifts.