India’s auto sector is witnessing good growth. Production has increased by 12.15% in FY24 to a total of 23.85 vehicles driven by policies and rising consumer demand. So, in this, we will talk about 3 Auto sector stocks and analyze them. We will see how we are getting investment opportunities in these stocks, which are fundamentally strong auto stocks. India is also witnessing a significant shift towards electric vehicles with a projected CAGR of 49% for the EV market from 2022 to 2030. It can be said that the overall consumption outlook remains positive due to changing consumer preferences and technological advancements
The reason is that the outlook remains positive. If you are looking for investment opportunities, then you can keep these stocks of the auto sector in mind. The best auto stocks to buy in 2024 are trading around ₹300 and are also fundamentally strong. They can give good returns for the long term because people are becoming more attracted to vehicles. Good growth can be seen in it in the coming time
Why invest in the Auto Sector Stocks?
- The auto sector in India is also very important for economic growth, contributing about 7% of India’s GDP and about 49% of its manufacturing GDP. It employs about 37 million people directly and indirectly. The sector also plays a vital role in pushing India’s transition to green energy through initiatives such as electric vehicle production. Apart from this, it also plays a very important role in exports and supports various ancillary industries, thereby driving overall economic growth and technological advancement in the country.
- As we can see, people are adopting electric vehicles (EVs). Despite some slowdown, EV sales can be expected to increase in the coming time, with the US expected to grow by about 20% in 2024 and global EV sales reaching 13.5 million units in 2023, indicating strong demand despite challenges such as high costs and limited infrastructure.
- If the market recovers, the global automotive market is projected to grow by 5-6% in 2024, with total vehicle sales expected to reach 95 million units, driven by improved production and consumer demand.
- Technology advancements are also being seen such as innovations in connectivity, autonomous driving, and online vehicle sales reshaping the industry. The rise of smart manufacturing and 5G connectivity is also increasing operational efficiency.
- The supply chain is also seeing improvements as production stabilizes post-pandemic, with the ongoing semiconductor chip shortage gradually easing, allowing for better inventory levels and pricing stability.
These factors make the auto sector poised for strong growth, reflecting a dynamic shift towards sustainability and technological integration. The stocks we are going to talk about here are fundamentally strong auto stocks, affordable auto stocks in India, and electric vehicle stocks around ₹300.
3 Auto Sector Stocks to Watch in 2024
Some stocks give multibagger returns daily, we will talk about this only. Fundamentally strong stocks which are showing a pattern of highs and lows in the past, if they fall by any means for a few months or 1 or 2 years, that fall should be a buying opportunity for us and we should not shy away from it. Keeping all these things in mind, we will talk about 3 such auto sector stocks herehttps://youtu.be/0zG6ZW_JgXU?si=wgVkzS1PYKip9Cdx
1- Jamna Auto Industries limited (JAI)
Jamna Auto Company overview; Jamna Auto Industries Limited is an Indian automotive suspension spring company that manufactures a wide range of products such as multi-leaf springs, parabolic springs, lift axles, and air suspension systems. It serves automakers such as Tata Motors, Honda, and Ford. The company was founded in 1965 and operates ten manufacturing plants across India with a capacity of 300,000 metric tons per annum. It exports to over 15 countries, establishing itself as a major player in the global automotive suspension market.
Company Financial treand March 2024
Sales Year on Year growth ₹2,360.95cr.
COMPANY FUNDAMENTALS
Market cap ₹4,968Cr
Current price ₹125
Dividend Yield 1.53%
Net profit 205cr
Net CF PY(cash flow) 28.5cr
Return on equity 24.4%
ROCE. 30.4%
Debt. 170cr
Stock P/E 24.2
Price to earning ratio 24.2
2- Ashok Leyland
Ashok Leyland Company Overview; Ashok Leyland is a leading automotive manufacturer that focuses primarily on commercial vehicles, including trucks, buses, and light commercial vehicles. It operates manufacturing facilities in multiple countries, including India, the UAE, and the UK. The company offers a diverse portfolio of commercial vehicles, including heavy and medium trucks, buses, and defense vehicles, targeting various market segments. It aims to increase market share to 35% in medium and heavy commercial vehicles, supported by product launches and network expansion. Ashok Leyland collaborates with companies like Alteams for die-casting components and John Deere for construction equipment, enhancing its product offering. The company focuses on growing exports with plans to double its international presence in the coming years. It also offers vehicle and housing financing, adding revenue streams beyond vehicle sales
Company Financial trend March 2024
Sales Year on Year growth ₹38,367.03
Company Fundamental
Market cap ₹65,761cr
Current price ₹224
Dividend Yield 2.21%
Net profit 2,696Cr
Net CF PY(cash flow) ₹-122Cr
Return on equity 28.4%
ROCE 15.0%
Debt 40,802 Cr
Stock P/E 26.4
ROE 28.4q
Price to earning ratio 26.4
3- NRB BEARINGS
NRB Bearings Company Overview; NRB Bearings is an Indian company. It is a leading manufacturer of needle and cylindrical roller bearings in India. More than 90% of vehicles on Indian roads use NRB products. The company is known for its engineering excellence and innovation. The company also employs 1,000 to 5,000 people. At the same time, the company continues to invest in technology and design capabilities to enhance its market position. The company has a wide distribution network in India and Thailand
Company Financial treand March 2024
Sales Year on Year growth ₹1,094cr
Company Fundamental
Market cap ₹3,044 cr.
Current price ₹314
Dividend Yield. 1.62%
Net profit ₹242cr.
Net CF PY(cash flow) ₹3.64 cr
Return on equity 12.8%
ROCE 14.6%
Debt. 178cr.
Stock P/E 31.3
ROE. 12.8%
Price to earning ratio 31.3
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Disclaimer; The information provided here is not a recommendation to buy or sell any stock. It is intended for informational purposes only. Any decisions regarding the purchase or sale of stocks should be made based on your own research and in consultation with a qualified financial advisor