Auto ancillary companies are those that supply various components, parts, and services to the automotive industry. The price-to-earnings ratio, referred to as the P/E ratio, can be used to quickly assess if a Stock is overvalued or undervalued.
Listed below are Multibagger Auto ancillary undervalued stocks.
Shriram Pistons & Rings
The Shriram Group, one of the most reputable industrial firms, has a remarkable heritage that extends back to Shriram Pistons & Rings Ltd (SPRL). The company is the biggest manufacturer of pistons, pins, rings, and engine valves in India thanks to its two manufacturing sites in Ghaziabad, Uttar Pradesh, and one in Pathredi, Rajasthan.
The company has a market valuation of Rs. 5,358 Cr., making it a small-cap. On Monday shares of the company were trading 0.52% down at Rs. 1,210.
The stock has delivered returns of 188% in the past year, making an investment of 1 lakh worth 2.88 lakhs today.
The company’s P/E ratio is 15.70, which is lower than the industry’s P/E ratio of 36.03. Indicating stock trading at a lower price or undervalued, with an EPS of 77.46
Banco Product
Banco Product Ltd is a pioneer in the fields of engine cooling and engine sealing systems, And company product offers Banco covers a wide range of products, including railroads, gensets, material handling equipment and agricultural tractors.
The company has a market capitalisation of Rs. 3,090 Cr., making it a small-cap. On Monday the company shares were trading 2.82% up at Rs. 441.25. The stock has returned 121% in one year, thus an investment of Rs. 1 lakh would now be worth Rs. 2.21 lakhs.
The company’s P/E ratio is 11.45, which is lower than the industry P/E ratio of 36.03, indicating the stock is undervalued, with an EPS of 37.72.
Written by Sheshadri N
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