India’s automobile sector is the largest, accounting for around 2.3 percent of the Indian GDP. As India is the world’s third-largest steel producer, car component makers benefit from lower costs. 

According to ACMA, the automobile industry’s entire turnover would increase by 10-15 percent in FY24. The automotive components industry grew by 23 percent in FY22 and is predicted to grow by 15 percent this fiscal year. 

A debt-free firm is a company that has no debt or external borrowing. A debt-free company is a business that is completely self-sufficient and has no outstanding loans. 

Here are three zero-debt auto parts stocks priced under Rs 200.

Munjal Showa Ltd. 

Munjal Showa Ltd is a micro-cap stock, with a market capitalization of Rs 568 Crore. On Friday, company shares were trading at Rs 142.05 a share, down 1.46 percent from the previous close price. 

The company has a debt-to-equity ratio of zero over the last five years. The company’s return on equity and return on capital employed have significantly increased, which stands at 4.89 percent and 5.85 percent, respectively. 

The stock has risen 56 percent in the previous six months and 35 percent in the last year. 

Revenue of Munjal Showa fell by 9.5 percent year on year, from Rs 318 crore in Q1FY23 to Rs 288 crore in Q1FY24. During the same time period, net profit grew from nil to Rs 13 crore. 

Munjal Showa Ltd manufactures auto components for two-wheeler and four-wheeler automotive players in the domestic market. 

Jullundur Motor Agency (Delhi) Ltd 

Jullundur Motor Agency has a market valuation of Rs 181 crore and is a micro-cap stock. The company’s shares were trading at Rs 79.50 per share on Friday, up 1.15 percent from the previous close price.

The company’s debt-to-equity ratio has been zero for the past five years. The firm’s return on equity stands at 13.21 percent and its return on capital employed is 17.65 percent. 

The stock has increased by 19 percent over the last six months and by 16 percent over the past year. 

Jullundur Motor Agency revenue marginally increased year on year, from Rs 116 crore in Q1FY23 to Rs 118 crore in Q1FY24. During the same time period, net profit declined from Rs 5.53 crore to Rs 4.78 crore. 

Jullundur Motor Agency trades and distributes car parts, accessories, and gasoline products. 

Indag Rubber Ltd 

Indag Rubber is a micro-cap stock, with a market capitalization of Rs 396 crore. On Friday, company shares were trading at Rs 151 a share, down 0.92 percent from the previous close price. 

The company’s debt-to-equity ratio has been zero for the past five years. The firm’s return on equity has risen to 6.24 percent and its return on capital employed is 7.29 percent. 

The stock has risen 39 percent in the previous six months and 87 percent in the last year 

Indag Rubber’s revenue marginally increased by 12 percent year on year, from Rs 56 crore in Q1FY23 to Rs 63 crore in Q1FY24. During the same time period, net profit increased by 300 percent from Rs 1 crore to Rs 4 crore. 

Indag Rubber is engaged in the manufacturing and selling of Precured Tread Rubber and allied products. 

Written by Omkar Chitnis

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