Best 5 Performing Automobile Stocks in the Last 6 Months

The Nifty Auto index has shown impressive growth, delivering a return of 35.77% in the past 6 months and about 60% in the last year. This remarkable performance has brought attention to some of the top-performing auto companies. Let’s delve into the best performers in the sector, based on their recent returns and other key metrics.

Top Performers in the Automobile Sector

(source: Screener)

1. Force Motors

• Current Market Price (CMP): ₹8,095.05
• Market Capitalization (Mcap): ₹10,669.27 crore
• Price to Earnings (P/E): 27.51
• Return on Capital Employed (ROCE): 23.77%
• Return Over 6 Months: 145.05%

Company Overview: Established in 1958, Force Motors Ltd is the flagship company of the Abhay Firodia group. It manufactures small and light commercial vehicles (CVs), multi-utility vehicles (MUVs), and agricultural tractors. The company also provides financial services through its subsidiary, Tempo Finance (West), and manufactures engines and generator sets through its JV company, Force MTU Power Systems.

Key Products:

• Light Commercial Vehicles (LCV)
• Multi-Utility Vehicles (MUV)
• Small Commercial Vehicles (SCV)
• Special Vehicles (SV)
• Agricultural Tractors

2. Mahindra & Mahindra (M&M)

• CMP: ₹2,739.60
• Mcap: ₹3,40,677.16 crore
• P/E: 30.23
• ROCE: 13.58%
• Return Over 6 Months: 68.87%

Company Overview: Mahindra & Mahindra Ltd is one of the most diversified automobile companies in India, with a presence in 2-wheelers, 3-wheelers, passenger vehicles (PVs), commercial vehicles (CVs), tractors, and earthmovers. Incorporated in 1945, the company operates in various sectors through its subsidiaries and group companies, including financial services, auto components, hospitality, infrastructure, retail, logistics, and more.

Global Presence:

• Operates in 22 industries
• Present in over 100 countries
• Manages 150+ entities on a consolidated basis

3. Hindustan Motors

• CMP: ₹29.74
• Mcap: ₹620.55 crore
• P/E: 24.40
• ROCE: 200.79%
• Return Over 6 Months: 64.97%

Company Overview: Incorporated in 1948, Hindustan Motors Ltd manufactures and sells vehicles, spare parts, steel products, and components. The company is also involved in trading spare parts of vehicles.

4. SML Isuzu

• CMP: ₹1,919.40
• Mcap: ₹2,777.38 crore
• P/E: 25.74
• ROCE: 23.81%
• Return Over 6 Months: 50.82%

Company Overview: SML ISUZU LIMITED was incorporated as Swaraj Vehicles Ltd in 1983 and has undergone several transformations since then. Initially promoted by Punjab Tractors Ltd with technical collaboration from Mazda Motor Corporation, Japan, and Sumitomo Corporation, Japan, the company rebranded to SML ISUZU in 2011. Sumitomo Corporation and Isuzu Motors now hold significant stakes in the company.

5. Escorts Kubota

• CMP: ₹3,889.20
• Mcap: ₹42,974.99 crore
• P/E: 41.28
• ROCE: 16.08%
• Return Over 6 Months: 34.96%

Company Overview: Escorts Ltd, now known as Escorts Kubota, is one of India’s leading engineering conglomerates. It is engaged in the manufacturing of agri-machinery, construction & material handling equipment, and railway equipment.

Business Segments:

1. Agri Machinery: Products include tractors, engines, implements, spare parts, and lubes.
2. Construction Equipment: Involves material handling, road compaction, and earth-moving equipment.
3. Railway Equipment: Manufactures brake systems, couplers, suspension systems, friction & rubber products.

Conclusion

These companies have demonstrated strong performance in the past six months, contributing significantly to the overall growth of the Nifty Auto index. Investors looking to capitalize on the booming automobile sector might consider these top performers.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.