As the Indian markets make new records day after day, select stocks of automobile and auto ancillary companies have driven much ahead of the benchmark indices at a breakneck speed in the last one year, with some of those even more than doubling the investor wealth. Indian stock markets have clocked historic record highs with the NSE Nifty 50 recently breaching the most awaited five-digit mark of 10,000. Both Sensex and Nifty have risen by 21-22% since the beginning of this year 2017. We take a look at some stocks from automobile and ancillary companies which have grown by as much as over 100% in one year.
MRF Ltd: The shares of one of the largest tyre manufacturers in India and the costliest scrip on Indian bourses have jumped a whopping 103% in the last one year. Earlier in June this year, MRF shares hit an all-time high of Rs 74,147.5 even while the company’s total sales for the financial year 2016-17 dropped 33.52% from the previous year to Rs 13,581 crore.
TVS Motors: TVS Motors shares have risen 101% in the last one year to Rs 583.9 from Rs 295.05. The third-largest domestic two-wheeler maker’s revenue for the financial year 2016-2017 grew by 9.6% to Rs 13,363 crore.
Maruti Suzuki India: Shares of India’s leading carmaker have risen over 60% since July last year, making a new lifetime high of Rs 7,745 on Monday. Maruti Suzuki’s sales grew by 18.5% on-year to Rs 66,909.4 crore for the year ended in March 2017. Other than the handsome capital appreciation via the surging stock prices, Maruti Suzuki is a decent dividend play as well. The company announced a record final dividend of Rs 75 per share in April 2017 which is 114% higher from its earlier dividend of Rs 35.
Bharat Forge: Shares of the Pune-based Indian multinational rose over 54% in the last one year to Rs 1,156.5 from Rs 747.55. The company has business interests in several sectors including automotive, power, oil and gas, construction & mining, rail, marine and aerospace. However, company’s revenue for the year ended in March 2017 dropped almost 10% to Rs 3,964.15 crore.
Motherson Sumi Systems: Shares of India’s largest auto ancillary company have risen 48% since July last year to Rs 325.45 from Rs 218.57. Motherson Sumi Systems is the largest automotive component supplier in India with registered revenues of Rs 41,985 crore for the financial year 2017, which was an increase of 15% from the previous year.